Crypto sees inflows of $4.5 billion per month: Glassnode
Data from Glassnode shows that the crypto market is currently observing capital inflows at a rate of around $4.5 billion per month.
The crypto market has recently turned from seeing outflows to inflows
According to the research company at the chain Glass node, the sector had only seen outflows since April 2022 until very recently. The relevant indicator here is “realized caps”, which is a capitalization model that calculates a sort of “true value” for a given asset.
The model sets the value of each token in the circulating supply to the price at which it was last moved (which is different from the common market value, which uses the same current price of the asset to value all coins).
To assess the flow of capital into and out of the entire crypto market, Glassnode has assessed the combined realized rate of Bitcoin, Ethereum and stablecoins.
The firm has assumed that most of the fiat entering the crypto sector flows in via BTC, ETH and stables, therefore only these assets are selected for the calculation.
Now, here’s a chart showing the trend in realized caps for Bitcoin, Ethereum, and stablecoins, as well as their combined total, over the last few years:
Looks like the sum of these metrics has declined in recent months | Source: Glassnode on Twitter
As shown in the graph above, the combined realized cap of these cryptoassets has decreased by a net amount in recent months. This means that there have been outflows in the market during this period.
Currently, the combined realized cap for Bitcoin, Ethereum and stablecoins is around $682 billion. From the chart, it is clear that Bitcoin has contributed the highest amount to this number.
Below is now a chart that specifically tracks the 30-day changes in the aggregate realized peak of these cryptoassets. That is to say, this calculation measures the monthly amount of inflows and outflows that take place in the realized ceiling.
The value of the metric seems to have been positive recently | Source: Glassnode on Twitter
During most of the recent bear markets, the net flows in the crypto market have been negative. This means that investors have pulled money out of the sector (into fiat or other type of commodity) over the past year.
This trend makes sense, as bearish periods have historically been when capital leaves the market. Recently, however, as Bitcoin and other assets have observed a rally in prices, the indicator’s value has turned positive. At today’s level, inflows are occurring at a rate of $4.5 billion per month.
The diagram also shows the network flow for Bitcoin + Ethereum and that for stablecoins separately (shown as curves colored in orange and blue respectively). It appears that most of the recent inflows have been in BTC + ETH as the stablecoins curve has been relatively flat.
BTC price
At the time of writing, Bitcoin is trading around $23,800, down 2% in the last week.
BTC continues sideways movement | Source: BTCUSD on TradingView
Featured image from Art Rachen at Unsplash.com, Charts from TradingView.com, Glassnode.com
