⚠️ Is Binance Activity Front-Running the Next Altcoin Rally?
Altcoin inflows into Binance may be a market leading indication, according to a quant.
Spikes in Binance Alternative coin inflows precede corrections.
An analyst discussed Binance's cryptocurrency exchange inflows in a CryptoQuant Quicktake article. The “Exchange Inflow Transaction Count,” which tracks investor deposits to a centralized exchange, is relevant here.
This indicator chart illustrates the trend of cryptocurrency deposits on exchanges.
The data shows that cryptocurrency Exchange Inflow Transaction Count peaked on all exchanges before both 2024 market peaks, indicating increased deposit activity. When selling, investors shift their coins to exchanges, hence exchange inflows might cause negative price activity. It seems this occurred in these two cases.
Only Binance has experienced an increase in inflows amid the recent market drop. This trend has also occurred before. Analyst: “Spikes in Binance inflows (represented by the purple area) frequently precede downward price movements or market corrections.”
The quant also noted that Binance is the top exchange in terms of trading volume and a nexus for retail and institutional cryptocurrency activity. Investor conduct on the platform might affect the market.
CryptoQuant released new smart money indicators for alts. The Average Order Size distinguishes futures purchase orders by size.
The chart above displays Hyperliquid (HYPE) indicator data. Whale-sized purchase orders came early this year when the cryptocurrency
