Definition ∞ On-chain deposits refer to the transfer of digital assets directly onto a blockchain, typically into a smart contract or a specific wallet address controlled by an exchange or decentralized application. These transactions are publicly verifiable and immutable, recorded on the distributed ledger. They represent the movement of funds within the native blockchain environment. This differs from off-chain records.
Context ∞ Crypto news often analyzes on-chain deposits as an indicator of market activity and investor behavior. Significant increases in deposits to exchanges can suggest potential selling pressure, while withdrawals might indicate accumulation. Reports use this data to gauge liquidity, market sentiment, and the movement of large holders, providing transparency into digital asset flows.
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