In this week's Glassnode Clips, we focus on evaluating risk in centralized cryptocurrency exchanges:
- The Measure of Liquidity Reliance ratio aims to gauge an exchange's level of dependency by looking at 30-day flows to/from another exchange relative to its balance.
- A higher Exchange Reliance Ratio may suggest increased counterparty risk, a consideration that could be especially relevant for smaller exchanges.
- Sudden shifts in the ratio might act as early warning signs, as likely indicated by Alameda's influence on FTX's outflows in June 2022.
Discover more in the latest Glassnode Clips below 👇
https://youtu.be/Z62l6dtB5rQ