Exchange Netflow measures the net difference between coins flowing into and out of exchanges (Inflow − Outflow = Netflow), providing a cleaner directional signal of whether the exchange supply of a crypto asset is expanding or contracting.
A positive netflow means more coins are entering exchanges than leaving - a bearish signal for spot markets, as rising exchange supply historically correlates with increased selling pressure. A negative netflow indicates more coins are being withdrawn than deposited, reflecting accumulation behavior and a reduction in available sell-side supply.
For derivative exchanges, netflow reflects the net change in collateral held on-platform - a rising value signals increasing open interest potential and elevated volatility risk rather than a directional price move.
