Entity Adjusted Flow

Definition ∞ Entity adjusted flow is a metric used in blockchain analytics to measure the movement of cryptocurrency between distinct economic entities, rather than individual wallet addresses. This approach filters out internal transfers within the same entity, providing a clearer view of genuine transactional activity and market sentiment. It helps differentiate between significant market movements and mere address consolidation.
Context ∞ Entity adjusted flow is a valuable tool for market analysts and researchers seeking to understand underlying trends in cryptocurrency markets, often referenced in expert commentary. The methodology is continuously refined to improve the accuracy of entity clustering and transaction attribution. A critical future development involves integrating this metric into predictive models for market behavior and systemic risk assessment.