Inflows and outflows are crucial indicators of market activity, liquidity and investor sentiment within the cryptocurrency ecosystem.
The quantity of digital assets being deposited into cryptocurrency exchanges is referred to as “inflows.”
These inflows can happen for a number of reasons, such as when investors trade, purchase or sell cryptocurrencies or move funds across wallets. They are essential tools for assessing investor sentiment, market liquidity and prospective price changes in the cryptocurrency market. Increased trading activity or interest in particular cryptocurrencies may be indicated by high inflows, which could have an impact on market trends and prices.