- Nansen explained how to use the Exchange Flows feature on its platform.
- Users can monitor developments within a crypto exchange with the Exchange Flows tool.
- The tool allows users to get an overview of how an event impacts a particular exchange.
Nansen, the blockchain data and research platform for crypto investors, provided information to users on how to use one of its tools. In a tweet, the platform explained how users can monitor developments within a crypto exchange by using its Exchange Flows feature.
The blockchain data and research platform used an example of a seven-day exchange flow on Binance to explain how users can apply the Exchange Flows analytical tool. Using a screenshot, Nansen showed that the inflow of funds into Binance within seven days was $6.9 billion. Within the same period, the Binance exchange recorded an outflow of $7.2 billion, leaving a netflow of -$288 million.
The summary of the example shown by Nansen reveals that users withdrew more funds from the Binance exchange than they deposited during the period under review. Nansen explained that the timeframe of the Exchange Flows analytics tool can be varied to suit users’ interests. For instance, users can adjust the analysis’ duration to twenty-four hours or one hour.
According to Nansen, the Exchange Flows feature on its platform allows users to get an overview of how an event impacts a particular exchange or exchanges. By using the Exchange Flows feature, users can explore how investors respond to events in the crypto industry.
Nansen referred to a previous tweet that used Exchange Flows to explain the effect of the SEC’s lawsuit against Coinbase. In the aftermath of the lawsuit, investors withdrew fewer coins from both Binance and Coinbase compared to their reaction when the SEC sued Binance.
From Nansen’s data, after the SEC sued Coinbase, Binance, and Coinbase, both had outflows within 24 hours – $491.9 million and $105.3 million respectively. Meanwhile, within 24 hours of the SEC filing a lawsuit against Binance, its users withdrew over $3 billion across multiple chains.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
