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Despite heavy outflows, CEXs continue to be pillars of liquidity

Despite heavy outflows, CEXs continue to be pillars of liquidity

Centralized exchanges are the primary gateways for traders to buy and sell crypto. Despite the significant rise in popularity and usage of decentralized exchanges (DEXs) in the past year, CEXs still facilitate most crypto trades. As such, they provide the foundational infrastructure for market liquidity and price discovery.

Understanding their health and performance is important as it provides insights into market sentiment and user behavior. A net increase in inflows shows an increase in trading activity, which, depending on price movements, can indicate both bullish and bearish trends. Conversely, outflows often signal that investors are moving their assets to cold storage, transferring to other platforms, or taking profits. When substantial outflows are paired with declining prices, it can indicate a bearish sentiment or concerns about the security of a particular exchange. However, when outflows come during a period of price stability or increase, it’s seen as a bullish sign. A lack of funds on exchanges leads to a supply crunch that can further increase rising prices.

Monitoring these movements enables us to identify market trends and assess the liquidity and stability of different exchanges. It also allows for detecting unusual activity that could precede market shifts, enabling proactive risk management. Overall, inflows and outflows are critical indicators that reflect the interactions between traders and exchanges, offering a clearer picture of the underlying forces driving the market.

Name Assets Clean Assets 24h Inflows 7d Inflows 1m Inflows Custom range Inflows Spot Volume 24h Open Interest Avg Leverage
Binance $124.457b $104.704b -$145.29m -$909.75m -$1.541b -$6.525b $16.04b $23.279b 0.22x
OKX $23.087b $22.593b $73.03m $132.39m $757.18m $534.94m $2.257b $8.229b 0.36x
Bitfinex $20.85b $16.913b -$26.25m $99.17m $355.63m $355.64m $142.23m $504.06m 0.03x
Robinhood $16.182b $16.182b $44.34m $54.93m -$231.54m -$232.09m
Bybit $9.466b $9.455b -$8.08m $35.88m -$167.6m -$100.55m $3.826b $15.016b 1.59x $7.237b $6.526b -$28.67m -$59.85m -$34.63m $3.46m $977.35m $407.33m 0.06x
HTX $4.178b $4.119b $14.8m -$57.71m -$155.63m -$164.82m $2.42b $1.551b 0.38x
KuCoin $3.207b $2.992b -$18.19m -$52.68m -$156.72m -$158.83m $644.71m $2.334b 0.78x
Bitstamp $3.076b $3.076b $3.86m $17.88m -$66m -$67.7m $235.33m
Deribit $3.412b $3.412b $12.97m -$9.76m -$353.69m -$357.69m $2.612b 0.77x

Data from DeFi Llama showed a…

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