On-Chain Flows

Definition ∞ On-chain flows represent the movement of digital assets between different addresses recorded on a blockchain’s public ledger. These transactions provide transparent data on how assets are transferred, accumulated, or dispersed across the network. Analyzing these flows offers direct visibility into the activity and behavior of market participants without relying on intermediaries.
Context ∞ The examination of on-chain flows is central to understanding the underlying activity of blockchain networks and digital asset markets. News reports often cite changes in these flows to infer investor behavior, such as asset accumulation by whales or outflows from exchanges. Current analyses may focus on specific flow patterns that indicate potential market sentiment shifts or the movement of assets into or out of decentralized finance protocols.