Exchange Supply

Definition ∞ Exchange Supply refers to the quantity of a particular digital asset that is readily available for trading on cryptocurrency exchanges. This metric is distinct from the total supply or circulating supply, as it specifically denotes the amount held in exchange order books and wallets accessible for immediate trading. Fluctuations in exchange supply can significantly influence market liquidity and price dynamics.
Context ∞ The current analysis of Exchange Supply is a key indicator for traders and analysts seeking to gauge market sentiment and potential price movements. Discussions often revolve around the impact of large sell orders or accumulation by whales on exchange balances. Future developments to observe include the correlation between exchange supply levels and broader market trends, as well as the effect of exchange-specific tokenomics on overall availability.