Of course, Trading Volume is an important metric in the crypto space because it has such a huge impact on price from both an absolute and relative perspective.
If we look from a trader perspective toward the crypto Market so the first thing that we have to know about volume.
Trading Volume:Trading volume is the number of coins that have exchanged hands during a defined period
of time, usually 24 hours
Trading Volume of A Coin:The trading volume of a coin is how much value of a coin has been bought and sold over 24 hrs.
Importance of Trading Volume:For example, if a trader wants to take a trade on a coin so first, they tried to confirm trends and patterns of the coin with technical analysis because high or low trading volume attracts different types of traders and investors. Many traders and investors prefer a higher average daily trading volume compared to low trading volume, because with high volume it is easier to get into and out of positions. So therefore Trading Volume is an important metric in the crypto space
ref:
https://www.investopedia.com/terms/a/averagedailytradingvolume.asp#:~:text=Average%20daily%20trading%20volume%20is,get%20into%20and%20out%20positions.
ref:
https://www.bitrates.com/guides/terminology/trading-volumeDisclaimer: The post should not be considered financial advice. I do not give advice on financial products.
