Does Trading Volume really matter ?

[ningrum]

oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.

[justdimin]

Almost all exchanges manipulate trading and the volume but some exchanges have the pedigree of a more reliable volume of trade due to high daily number of users/visits, deposit and withdrawal. Trading order can also indicate how genuine trade is on the exchange, if most of order set at the present prices are filled immediately without bot. The size of order on the exchange correlates with volume. top exchanges like binance, kucoin, coinbase got such pedigree and is the reason almost all projects want to list there. If a project start producing low trade volume for so long, the exchanges delist them.

I would guess that you could see the volume while you are trading yourself as well. When you are trading if the price actually moves decently that means there are some traders, if it doesn't move, but there is volume, that means they are trading in between the lines.

I have been part of an exchange back in the day working to make one of the tokens volume high, what we did was put orders on lower than the buyer, and one higher than the seller and trade with each other, we would remove it right afterwards so we wouldn't be able to trade with others and lose money neither. We would only lose the fee, and that was given back anyway so it wasn't a bad deal.

[len01]

oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.

but keep in mind that the trading volume can be manipulated by the whale or the owner of the coin and if we are not careful to analyze the coin we want to buy, we will surely fall into that trap and lose even more money.
but if we want to trade on some of the top coins that have a good reputation and the trading volume can be analyzed logically and makes sense that would be better. because the manipulation of trading volume can be seen when analyzing through several platforms such as coinmarketcap and coinecko. there we can analyze and compare how true the trading volume is and we can also see the daily trading volume to analyze it.
actually if we are observant in analyzing it, we will definitely see the original trading volume with fake volume

[goaldigger]

The trading volume of any project depends a lot on that project because it can be seen that when the trading volume is up, many new investors join and they will continue to invest in that project so that more volume is up and the price of the token increases a lot. In this case, in many cases Project token price goes up so Trading Volume plays an important role in a project.

Volume is one of the indicator and it can actually confirm the trend so if there’s a good volume you can expect many investors to come in, but that is not a guarantee though since volume can also tell if it’s already overbought or oversold. If you want to have a good signal, use volume along with the other indicators, many traders forget to look at the volume and that’s why their analysis is not working, volume really matters to me.

[Shasha80]

The trading volume of any project depends a lot on that project because it can be seen that when the trading volume is up, many new investors join and they will continue to invest in that project so that more volume is up and the price of the token increases a lot. In this case, in many cases Project token price goes up so Trading Volume plays an important role in a project.

Volume is one of the indicator and it can actually confirm the trend so if there’s a good volume you can expect many investors to come in, but that is not a guarantee though since volume can also tell if it’s already overbought or oversold. If you want to have a good signal, use volume along with the other indicators, many traders forget to look at the volume and that’s why their analysis is not working, volume really matters to me.

It is true that trading volume is one of the important factors that we must look at to determine which projects are good for trading. As you said if
the project has a high trading volume, it means that the project is very attractive to traders, and it will make it easier for us to trade. Because projects
with low trading volumes are usually difficult to sell, because the demand is small. But we also have to be careful because trading volume can also
be manipulated, especially on small and unpopular exchanges, usually a lot of manipulation occurs. They will use bots as if many traders are interested
in these projects even though it is only manipulation. That's why we also have other considerations before deciding which projects are suitable for trading.
Trading volume is indeed very important, but of course trading volume is not the only thing we have to look at, there are many things we have to
look at and consider.

[Kelvinid]

Just imagine OP if you are trading in a coin that has zero trade volume, you will certainly be thinking who buys my coins when I sell them? Nothing, it means it is very important in trading and such activities will encourage traders to join the party. In fact, this is one way to recognize that a particular project is worth to risk and we know that having this will give us profit.

But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.

[TelolettOm]

Trading volume indicates how the interest of people in the coin/token. So, it is surely very necessary and means a lot.
As a trader, I will avoid buying coins with low trading volume. It is too risky since the price seems to tend to decrease gradually with lesser traders.

If you choose a coin with a high volume and an active ecosystem, it is the right decision. But make sure that they have quality developers/teams, it is more important because it has the biggest role to guarantee the project exists for a long time or not. You can see the quality of the developers from the improvement of the project constantly.

[jossiel]

oh yes it is very important because you can distinguish a project that is really good or not,
for example if in a pancake swap you see a lot of people trading token A then that is a sign that token A has good fundamentals,
because they believe token A can achieve what they want expect, but if you see token B not being traded that's a sign that the project is bad.

Although there can be that way of saying that if a project is good or not through its volume, that is not enough.

But if you're going through dexes, it's really one way of looking for to say what you want to deal because you'll never know if it's going to be as good as what you're thinking.

It's a good standard to be followed.

[Zilon]

When you are given a trading volume the only indicate how long that project has traded within that estimated timeframe. Usually it is based on 24Hrs. Trading volume matters but it doesn't really give in-depth of all you need to know because it works based on a stipulated time. Instead total supply and market capitalisation can give more hint than trading volume. Also pay attention circulating supply.

A bad project might have more trading volume than good project because it had more trading activities circulating around the coin or token within the 24hrs time frame compared to a good project. If you chose to analyse based on trading volume do well to confirm your charts as well

[jaberwock]

The way I interpret it right now ( correct me if I'm wrong ) is that trading volume is high when an ecosystem is very active and adoption is growing relative to other projects, so it's a good indicator to buy into that project.

Yes, it does really matter and you are right actually. High trading volume means the project is active. Whenever I judge a project if it's good or not, this is also one of the early things that I am looking at.

Just make sure that the data's that you are seeing are verified to be legit because it's very easy for each project to write high numbers but the truth is that they are only faking it to attract more investors. Vulcan forged is also a famous project, which is why its trading volume is high but for axie, the game is only popular before but not anymore now since it experienced some problems which until now haven't solved yet. This is why their volume is dropping hard.

[rendravolt]

Just imagine OP if you are trading in a coin that has zero trade volume, you will certainly be thinking who buys my coins when I sell them? Nothing, it means it is very important in trading and such activities will encourage traders to join the party. In fact, this is one way to recognize that a particular project is worth to risk and we know that having this will give us profit.

But of course, this won't just be a factor to consider if the project is really working or not, we also have to consider the exchanger because there some mystery happens in crypto, fake volume.

Maybe I'll focus on the fake volume you're saying. I've seen very many exchanges in the past that use this method to get user ratings. Usually fake volumes are used by several small exchanges so that the buy and sell orders are arranged very neatly.

[Mamun74]

I think, Trading volume is important for crypto trading. People always interested in large volume crypto currency. I also think,If any coin volume is zero they you can trader this coin comfortable? And also need good project to success in trading.

[ShowOff]

Trading volume is considered important for one thing, the asset is traded regardless of whether it has a real use case or not. The thing is, there is the possibility of manipulation of the trading volume for most of the altcoin in the market, so you should definitely remain cautious.

To determine which assets to invest in especially altcoin, then you may need to review their trading volume instead of ignoring them. This volume can go up and down following the price trend, so it will be very important if you do the analysis. About the two altcoin you mentioned in OP, I didn't do much but someone may have told you how volume is measured.

[teosanru]

I've only started noticing the Trading Volume stats on my favourite projects. I am a little intrigued as to what this exactly means, does it really matter much ? Some lesser known projects like Yield Yak have barely $4,000 in Trading Volume, yet the TVL is something like $50 million, whereas a better known project like Raydium has a Trading volume of more than $6 Million, with a TVL of only a little more than triple the TVL of Yield Yak  ( $160 Million TVL )
I'm also surprised that some lesser known gaming projects like Vulcan Forged have a high trading volume , whereas others ( like Axie Infinity ) have a relatively low trading volume.
The way I interpret it right now ( correct me if I'm wrong ) is that trading volume is high when an ecosystem is very active and adoption is growing relative to other projects, so it's a good indicator to buy into that project.

See trading volumes decide how much is the liquidity of your assets if there are very low trading volumes like the projects you are talking about you'll not be able to sell immediately at the market price when you want to you'll have to wait for a long time which can be disastrous in choppy markets. Also less volumes is an indication that people are not that much intrigued in the project so it might not be that good as well.

[DoublerHunter]

I've only started noticing the Trading Volume stats on my favourite projects. I am a little intrigued as to what this exactly means, does it really matter much ? Some lesser known projects like Yield Yak have barely $4,000 in Trading Volume, yet the TVL is something like $50 million, whereas a better known project like Raydium has a Trading volume of more than $6 Million, with a TVL of only a little more than triple the TVL of Yield Yak  ( $160 Million TVL )
I'm also surprised that some lesser known gaming projects like Vulcan Forged have a high trading volume , whereas others ( like Axie Infinity ) have a relatively low trading volume.
The way I interpret it right now ( correct me if I'm wrong ) is that trading volume is high when an ecosystem is very active and adoption is growing relative to other projects, so it's a good indicator to buy into that project.

See trading volumes decide how much is the liquidity of your assets if there are very low trading volumes like the projects you are talking about you'll not be able to sell immediately at the market price when you want to you'll have to wait for a long time which can be disastrous in choppy markets. Also less volumes is an indication that people are not that much intrigued in the project so it might not be that good as well.

^That is definitely right which means trading volume is very important and really matters in trading activity.
That is why popular trading exchange becomes good when it comes to trading because of the liquidity of the exchange. Your order position will be faster to sell or buy. See the difference between centralized and decentralized exchange which is when it comes to liquidity centralized are recommended by most traders.

[serjent05]

Trading volume is considered important for one thing, the asset is traded regardless of whether it has a real use case or not. The thing is, there is the possibility of manipulation of the trading volume for most of the altcoin in the market, so you should definitely remain cautious.

Trading volume is one of the most important factors to consider.  It provides liquidity to the coins.  Meaning coins with huge volume means there are lots of buys and sell going on.  It does tells how much is the coins being demanded and supplied.  With a huge trading volume, we are comfortable enough to buy the token without worrying of the possible lost of demand.

To determine which assets to invest in especially altcoin, then you may need to review their trading volume instead of ignoring them. This volume can go up and down following the price trend, so it will be very important if you do the analysis. About the two altcoin you mentioned in OP, I didn't do much but someone may have told you how volume is measured.

It is an SOP to check the trading volume of the asset we wanted to invest.  Securing the liquidity of an asset is a must because we never the time when we need to sell our asset and having a huge trading volume can assure us that we can liquidate our asset easily without undergoing heavy losses.

[goinmerry]

As far as I know, trading volume really matters but of course, it should not be fake.

This volume attracts a trader and that's the start of a possible big pump.

However, we should be careful and not just rely volume when choosing a coin.

[blue_hurricanger]

I've only started noticing the Trading Volume stats on my favourite projects. I am a little intrigued as to what this exactly means, does it really matter much ? Some lesser known projects like Yield Yak have barely $4,000 in Trading Volume, yet the TVL is something like $50 million, whereas a better known project like Raydium has a Trading volume of more than $6 Million, with a TVL of only a little more than triple the TVL of Yield Yak  ( $160 Million TVL )
I'm also surprised that some lesser known gaming projects like Vulcan Forged have a high trading volume , whereas others ( like Axie Infinity ) have a relatively low trading volume.
The way I interpret it right now ( correct me if I'm wrong ) is that trading volume is high when an ecosystem is very active and adoption is growing relative to other projects, so it's a good indicator to buy into that project.

See trading volumes decide how much is the liquidity of your assets if there are very low trading volumes like the projects you are talking about you'll not be able to sell immediately at the market price when you want to you'll have to wait for a long time which can be disastrous in choppy markets. Also less volumes is an indication that people are not that much intrigued in the project so it might not be that good as well.

^That is definitely right which means trading volume is very important and really matters in trading activity.
That is why popular trading exchange becomes good when it comes to trading because of the liquidity of the exchange. Your order position will be faster to sell or buy. See the difference between centralized and decentralized exchange which is when it comes to liquidity centralized are recommended by most traders.

And a good reason why many exchanges also did fake trading volume to get traders to their sites. That actually answered OP's question about does trading volume matter? Yes, it does cause exchanges have to fake it to stay relevant and keep up their business. Heck, you might even see they've some incentives or promotions to boost their trading volume by lower trading fees. All of these actions from exchanges truly show us trading volume always matters.

[LUCKMCFLY]

As far as I know, trading volume really matters but of course, it should not be fake.

This volume attracts a trader and that's the start of a possible big pump.

However, we should be careful and not just rely volume when choosing a coin.

Well, just by knowing how to read the volume of operations, you can determine a much more accurate prediction than normal, but taking into account that the volume in crypto is not consolidated, it is almost like entering a casino and doing gamling, for me things are so because there is a lot of information that is given and seen in the volume, and that is something that affects a lot, currently you have to check the volume in the most emblematic exchanges such as Binance, Bitfinex, for me they are the ones that bring the most volume and m'pas Businesses exist, not to mention that you can already enter the BTC market from Binance with great leverage.

[TimeTeller]

As far as I know, trading volume really matters but of course, it should not be fake.

This volume attracts a trader and that's the start of a possible big pump.

However, we should be careful and not just rely volume when choosing a coin.

Well, just by knowing how to read the volume of operations, you can determine a much more accurate prediction than normal, but taking into account that the volume in crypto is not consolidated, it is almost like entering a casino and doing gamling, for me things are so because there is a lot of information that is given and seen in the volume, and that is something that affects a lot, currently you have to check the volume in the most emblematic exchanges such as Binance, Bitfinex, for me they are the ones that bring the most volume and m'pas Businesses exist, not to mention that you can already enter the BTC market from Binance with great leverage.

Trading volume is just one factor that you need to consider if you want to trade a coin.
It may give you hints what's the performance of this in the trading market,
but it is not the whole story for the coin. Better check their actual developments.
Also, you can check their social media channels what is going on with their coin.
You can get some insights if the team is just doing pump and dump, or wash trading just to make their volume big.