What Is Token Flow?

Token flow tracks the movement of tokens between wallets, exchanges, and DeFi protocols. Analyzing token flow reveals the full lifecycle of capital: from exchange withdrawal (buying) to holding in personal wallets, to DeFi protocol deposits (yield seeking), to exchange deposits (selling). Sonar Tracker visualizes token flow for tracked tokens, showing net directional movement across wallet categories. Aggregate token flow data — especially exchange inflows and outflows — is one of the most predictive on-chain metrics for short-term price direction.