Lately I've been paying attention to the "Trading Volume" metric on Coin Gecko as a key indicator. A project may be promising for instance, and have a small market cap ( perfectly normal for new projects ) but if the Trading Volume is something ridiculous like $10,000 I stay away from it. It means the project is almost dead with no participation, and no activity on it.
The trading volume is always represent how many demands that are still available for the token. The smaller trading volume means fewer people are trading.
The project has no demand if it has no daily trade volume at this moment. This is the best matrict to determine whether that's good crypto but you must also be aware if this metric can be faked by some garbage exchange sites.
I remember when some exchange sites are faking their trade volume to attractusers.
On the other hand, a huge Trading Volume like what Chainlink has ( $220 Million ) means the project is strong, with lots of activity on it, a healthy demand for it, which is always good to see in a bear market.
Now FLUX, is one of the smaller projects in the spectrum, rated outside of the top 200, so my jaw dropped when I noticed it's showing a Trading Volume of $75 Million !! WHAT ?! More than Quant, XDC and Render ? What's going on here ? This screams of some serious adoption, or some whale trading going on.... what do you guys think ??
Flux's trading volume was spiking a lot due to the pump that happened to the token. It will decrease again after the pump. You can try to check it anytime to make sure what's gonna happen with the trading volume.
Some projects like quant was a garbage project. This project rarely got the hype. PYR was also suffering the same thing. The trading volume surged a lot from 5m to the 50m in a short time due to the pump.
The main problem if this will not be last long.
