Introduction

In another dashboard we found that governance commitment periods in Algorand influenced the growth of unique Algorand wallets.

In this dashboard we investigate how these two governance periods influence flow of ALGO from and to centralized exchanges.

First, we will look at the first commitment period of Sept 30th, 2021 to Oct 14th, 2021 and compare the previous two weeks Sept 14th, 2021 to Sept 30th, 2021.

Then, we will zoom out a little, and compare August 14th, 2021 - Sept 13th to Sept 14th, 2021 - Oct 14th.

Finally, we will look at the first governance payout period (Jan 1st, 2022- Jan 5th, 2022) which overlaps the second governance commitment period (Dec 24th 2021 - Jan 7, 2022). We will examine the impact of these two overlapping period on the ALGO volume movement to and from CEXs.

Results

Did we see more ALGO volume movement from CEXs to wallets by day during the commitment period compared to the previous period?

The barchart below show how the volume of ALGO moved to wallets from CEXes has been changed since two weeks before the governance period.

The data shows one spikes on september 22nd and overall an increase in volume of transfers in the middle of GC period.

Do we see more ALGO volume movement from CEXs to wallets by day leading up to and during the commitment period than the month before?

Zooming out and having a broader picture we can see that the volume of inflow from CEXes actually started earlier around September 7th. It is clear that a week before and during the GC period we have a higher volume of movement from CEXes.

Do we see an increased volume of ALGOs moving TO CEXs from Jan 1st, 2022 - Jan 14th, 2022 compared to the two weeks prior Dec 18th 2021 - Dec 31st 2021?

From January 4th we can see an increase in amount of ALGOs transferring to CEXes.

How did the second commitment period Dec 24th 2021 - Jan 7, 2022 impact the ALGO volume movement to and from CEXs during the first governance payout period?

The graph below shows the volume of ALGOs to and from CEXs during Dec 24th, 2021 to Jan 12th, 2022.

As can be seen we have a dramatic increase in volume of ALGO transfer from CEX to algo wallets on December 26. This can be resulted from the second governance commitment period. Comparing in and out flow, we can see between december 24th and january first the balance is more infavour of inflow (transfer from CEXes). However, since JAnuary 1st, all days the amount of outflow is higher than inflow.

Conclusion

The data shows that:

• right before and during governance period one the amount of ALGOs transferred from CEXes was increasing.

• during the governance period two there is an increase in ALGO transfer from CEXes to Algorand wallets. However, as this period overlapped with the first governance commitment payout period we can see ALGO outflow as well. The balance with starting the payout period turn to in favor of outflow.