This article introduces the Balances on Exchanges metric and how to use this metric to capture signals.
A token’s Balances on Exchanges refer to the token amount circulating on centralized and decentralized crypto exchanges.
These cryptocurrencies are available to the public for trading on exchanges and thus could affect the current price of the token.
For example, suppose the examplecoins project has 100,000(100%) coins in total supply. By Candlestick data tracking, 20,000(20%) examplecoins are on centralized exchanges wallet addresses, and 30,000(30%) are on decentralized exchanges contract addresses.
In this case, the sum Balances on Exchanges are 50,000(50%), 20,000(20%) on CEX, and 30,000(30%) on DEX.
How can I use it?
The Balances on Exchanges show you the absolute value and the percentage of tokens on CEX and DEX, and the changes in a certain period.
1. Choose a cryptocurrency
Candlestick supports 200,000+ tokens.
- Log in to select the token you want to check.
- Click the drop-down list on the left sidebar to find a target token. Or you can type a token’s name in the top right search bar to find it.
- Select Metric Group – CEX, and click the Balances on Exchanges to see the number.
2. Understand the illustration
This indicator is presented in a column chart. It shows 3 numbers – supply on CEX, supply on DEX, and the CEX+DEX % in total supply.
- The yellow line is the ratio of the Balances on Exchanges to the total supply in the market.
- Hover around a specific bar to check detailed distributions.
- By default, this metric will show data changes daily, and you can click on the date groups located above the chart on the left and choose the time dimension you need.
- In addition, the chart can just show the certain data you want to check by clicking on the titles in the upper right above the chart to hide other data.
The Balances on Exchanges metric is an overview chart. For traders, you need to combine it with other metrics CEX Balance and DEX Balance for deeper analytics to identify the bullish and bearish signal.