For a video breakdown of 'Exchange Flow Balance' and 'Exchange Flow', click here.
Exchange Flow Balance shows the combined values of tokens moving in and out of exchange wallets on a certain date.
If the value is positive on said date, more of a particular token entered the exchanges than left, and vice versa.
It’s not uncommon for large inflows of tokens to the exchange to precede rapid price growth.
Here’s that exact scenario in case of aeternity, a blockchain platform that enables scalable smart contracts:
When a large amount of tokens flow out of the exchange, on the other hand, the price is likely to fall soon thereafter.
The below graph shows lots of DICE tokens moving out of exchange wallets during a price rally; the price plunged following the event.
For more details on the metric 'Exchange Flow', please click here.