Outflow Transaction Count
Last updated
Last updated
IntoTheBlock has built a proprietary machine learning powered classifier to identify addresses of top centralized exchanges, including their deposit addresses, withdrawal addresses, hot wallets and cold wallets. With this classifier, IntoTheBlock can measure the total number of transactions that involve funds flowing out of exchanges’ withdrawal addresses for a given crypto-asset, shown as the Outflow Transaction Count indicator.
The Outflow Transaction Count indicator provides indication of users withdrawing their funds from centralized exchanges likely to store in safer cold wallets. This is a valuable approximation of users going long and opting to hold their own funds.
For this reason, outflows tend to spike as price crashes as pointed in the example above. While this can be the case on several occasions, natural fluctuations in exchanges’ flows can often have smaller spikes without regards to price action as well.
