Cryptocurrency analysis firm CryptoQuant has released a new analysis examining altcoin entry and exit movements on the Binance exchange.
The company said data shows investors in some altcoins are exiting exchanges, while others are seeing increased selling pressure as they park their tokens on exchanges.
According to our analysis, the altcoins with the most outflows on Binance were Axie Infinity (AXS), Chainlink (LINK), Fetch.ai (FET), Aavegotchi (GHST), Amp (AMP), and Synthetix (SNX).
In contrast, the assets with the highest inflows were recorded as Darania Mine (DAR), Polygon (MATIC), Bitcoin (BTC), Jasmy Coin (JASMY), and Chiliz (CHZ).
CryptoQuant noted that token outflows from exchanges typically indicate investors are moving assets to cold storage or reducing selling pressure. This, combined with a reduction in circulating supply, could have a positive impact on prices.
On the other hand, large inflows into the stock market may indicate that investors are moving assets to stock exchanges in preparation for sale. This is a signal that could put downward pressure on prices in the short term.
*This is not investment advice.
