Cryptocurrency analysis firm CryptoQuant has published a new analysis examining the entry and exit movements of altcoins on the Binance exchange.
The company stated that data showed that investors in some altcoins are exiting exchanges, while in others, selling pressure is increasing by depositing tokens into the exchange.
According to the 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 experiencing the most inflows were recorded as Mines of Dalarnia (DAR), Polygon (MATIC), Bitcoin (BTC), JasmyCoin (JASMY), and Chiliz (CHZ).
CryptoQuant noted that token outflows from exchanges typically indicate investors are moving their assets to cold storage or reducing selling pressure. This, combined with a reduced circulating supply, could potentially have a positive impact on prices.
On the other hand, high inflows into stock markets could indicate that investors are moving their assets to stock exchanges in preparation for selling. This is a signal that could put downward pressure on prices in the short term.
*This is not investment advice.