Definition ∞ Supply on exchanges refers to the total quantity of a particular digital asset held within the wallets of centralized cryptocurrency exchanges. This metric indicates the immediate selling pressure or liquidity available on trading platforms. A higher supply suggests more assets are readily available for trading, while a lower supply implies fewer assets are accessible for purchase. It is a key indicator of market dynamics.
Context ∞ The supply on exchanges is a widely monitored on-chain metric, often analyzed in crypto news to gauge potential market movements. A decreasing supply on exchanges can signal a holding sentiment among investors, potentially leading to price appreciation if demand remains constant. Conversely, an increasing supply might suggest impending selling pressure.
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