Net Flow

Definition ∞ Net flow represents the difference between the total value of assets entering a specific entity or market and the total value of assets exiting it over a given period. In cryptocurrency, this metric indicates whether more capital is being invested into or withdrawn from exchanges, protocols, or particular digital assets. A positive net flow suggests accumulation, while a negative net flow indicates distribution or selling pressure. It is a crucial liquidity indicator.
Context ∞ Net flow data is regularly cited in crypto news to analyze investor behavior, market sentiment, and capital movements across various platforms. Reports often focus on net flows to and from centralized exchanges, stablecoins, or specific decentralized finance protocols. Monitoring net flow provides insight into the directional movement of capital within the digital asset economy.