Does Trading Volume really matter ?

[Len Saldua]

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.

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[The Cryptovator]

Volume matters but it should be real. Don't be over-excited if you see Volume has been increasing suddenly. It's because it's pretty easy to manipulate trading volume whether it's cex or dex. Have to see also chart reflection on how it's looking. Have to realize if it's real volume or fake volume. If the price increase with the volume means real volume coming although they might exit at any time. But if you see just volume increases and not much reflection in price that means the project team doing MM to increase trading volume. Hence the token price hasn't been increasing.

[FriedeFritz]

In essence, it serves as a sign of coin activity. It is a representation of the coin's total activity. It can be helpful in some circumstances, so be sure to first consider that in order to check cryptos relevance. They are quite significant factors, and when you witness large volumes of trades, it is clear that both are receiving attention from people and are generally well-liked.

[adaseb]

Trading volume and market cap are 2 completely different things. A coin can have almost 0 volume but market cap in the millions if its very illiquid.

Volume is typically used when day trading because it gives you hints when reversals can happen. Usually during a pivot there is a big volume bar and it hints that it might reverse. Not 100% accurate but during certain times it works very well.

[Oshosondy]

Trading volume and market cap are 2 completely different things. A coin can have almost 0 volume but market cap in the millions if its very illiquid.

Yes, trading volume and marketcap are two different things, but you can know from marketcap of what coin trading volume can be (either high or low). The higher the marketcap, the likely higher the trading volume can be. I am not talking about marketcap in general, but of a particular exchange, comparing it with the trading volume of the exchange.

Volume is typically used when day trading because it gives you hints when reversals can happen. Usually during a pivot there is a big volume bar and it hints that it might reverse. Not 100% accurate but during certain times it works very well.

Yes, volume is used in trading, to make analyses. Even I have not seen an exchange with wn indicator for marketcap, not necessary and have no useful information , but trading volume is used as an indicator in trading.

[okorieemmanuel]

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.

Yes! Trading volume actually matters. It tells you that the current stock is active, valuable and has some degree of usage by people.

[blockman]

Trading volume is important because you'll see how active this coin is in the eyes of the traders. If there's no movement at all or if it's very little, you'll be a hard time liquidating that token.
Volume speaks for the buyers and sellers and if you're going to analyze it, if the volume is too low then it's hard to get up because most of the investors have totally abandoned that project. But for newly launched, it's normal but depends on how long they'll stay on that low volume.

[Lanatsa]

Trading volume is important because you'll see how active this coin is in the eyes of the traders. If there's no movement at all or if it's very little, you'll be a hard time liquidating that token.
Volume speaks for the buyers and sellers and if you're going to analyze it, if the volume is too low then it's hard to get up because most of the investors have totally abandoned that project. But for newly launched, it's normal but depends on how long they'll stay on that low volume.

One of the main indications that you are dealing with a good project which does have a good or huge volume which does indicate that you are really able to play with those movement of prices.

You can eventually make out some on point comparison into those projects which are low volume and could be easily be manipulated and to those projects which does have huge volume isnt
something that could really be manipulated or would really be dumped.

If you are someone who do really love to stick into established coins or projects then it is one of the things that you would be looking upon.

[Rigon]

Of course trading volume is an important factor. The trading volume indicates the quality and popularity of the project.But in some cases, the trading volume is fake. But fake volume must be avoided.There are many project teams who create fake volumes to promote their projects To give them a good position in their project. But there is no price increase due to which automatic detection is that they are generating fake volume.So trading volume is very important factor in trading platform.

[samcrypto]

Trading volume is important because you'll see how active this coin is in the eyes of the traders. If there's no movement at all or if it's very little, you'll be a hard time liquidating that token.
Volume speaks for the buyers and sellers and if you're going to analyze it, if the volume is too low then it's hard to get up because most of the investors have totally abandoned that project. But for newly launched, it's normal but depends on how long they'll stay on that low volume.

Volume is definitely an important tools if you are going to analyze the project, it can tell you when to buy and sell or just to ignore the project because the volume is fabricated and manipulated. Volume can also guide you for your trading strategy, better not to ignore the volume and focus on this from time to time as well. Some trader are too focus on other indicators and they forget the importance of volume, it can work but it's not good for long term.

[chaser15]

Yes, trading volume matters. Without it, it can attract traders to do trades there. It's one of the basis for selecting which coins to trade.

That's why there's an attempt of doing a fake trading volume to lure traders. Once these manipulators were able to create big volatility, it will create a buzz in that exchange and they will able to attract more traders to circulate money there.

That's why always be aware.

[blockman]

Trading volume is important because you'll see how active this coin is in the eyes of the traders. If there's no movement at all or if it's very little, you'll be a hard time liquidating that token.
Volume speaks for the buyers and sellers and if you're going to analyze it, if the volume is too low then it's hard to get up because most of the investors have totally abandoned that project. But for newly launched, it's normal but depends on how long they'll stay on that low volume.

Volume is definitely an important tools if you are going to analyze the project, it can tell you when to buy and sell or just to ignore the project because the volume is fabricated and manipulated. Volume can also guide you for your trading strategy, better not to ignore the volume and focus on this from time to time as well. Some trader are too focus on other indicators and they forget the importance of volume, it can work but it's not good for long term.

Mostly, if the project has a low volume then it's going to be easy to ignore it and move on to the next project that tries to catch your attention. Although there really are websites that manipulate and cheat on what they show for their volume you'll eventually know if that's really the actual data it shows proportionately to the volume that it's got. Because if there are not that much people in the community, discussing about that project and the volume is quite high then you'll find it suspicious.

[mk4]

It depends — does it matter in what context? In the first place, trading volume is just data; it just depends how you're planning on interpreting it.

As for PYR and AXS, where are you getting your data? Based on CoinGecko, PYR has a 24h trading vol of $25m while AXS has a 24h trading vol of $43m.

[bittraffic]

I don't also watch the trading volume upon buying BTC but this is because we know, it has demand, and it's the top coin to invest.
Choosing altcoins must be different. The trading volume must have something to do with how big the community is and the demand for the token.

What does it mean if the volume of BTC drops significantly while we are in the bear market? 
Is it time to invest because it could mean the bottom or people lose interest anymore?

[Awaklara]

trading volume is important to consider. but in less popular projects or even new projects. it is very difficult to be sure the trading volume is genuine or just a manipulation is done on the exchange.

from coinmarketcap data, PYR has a trading volume of $28m. while AXY has a trading volume of $40m.
I don't know where the OP got the data regarding the 2 game projects you're comparing.

[Silberman]

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.

Volume matters and a lot, but it is not an indicator that is easy to read, as we know exchanges and even the developers of some coins know this is an important metric and they decide to manipulate it to make the coin more attractive in the eyes of traders, so like always we  need to be careful and not concentrate in this single metric to dictate our movements, try to look at the overall picture of a project and if everything looks fine, including the volume, then you can include it in the coins which you regularly trade.

[crwth]

It is the amount of trading that would come into a particular asset that would show the amount of buying and selling of it, and it could indicate whether it has actual traders and people are interested in it. Depending on what trading indicator or specifically a parameter that you would come into conjunction with the trading volume, then you could probably utilize it. If it is not, it couldn’t be of any use, depending on your trading strategy and where you are successful.

[coinerer]

It could be. We will often notice that there are some tokens or projects that do not have relatively good value but that token has a lot of volume. This is not unusual. For this I think familiarity plays a key role. If we look at meme coins there is no utility but lots of volume. Because this is possible only with strong community. As the awareness of your project increases, at the same time you can see the large trading volume.

[Solosanz]

Volume, price, marketcap and any other thing that can easily to be manipulated are useless factor to determine a good project. Do you think all of the top 10 coins on CMC and Coingecko are legitimate projects? Nope, it's full of scam coins that only have a huge marketcap. A whale can just invest in one project to pump the coin to be appeared on the top 10 while the project is new and doesn't have any use case.

Make sure you're just stick with Bitcoin since the other project is sooner or later will turn to be scam or dead project.

[ethereumhunter]

Volume, price, marketcap and any other thing that can easily to be manipulated are useless factor to determine a good project. Do you think all of the top 10 coins on CMC and Coingecko are legitimate projects? Nope, it's full of scam coins that only have a huge marketcap. A whale can just invest in one project to pump the coin to be appeared on the top 10 while the project is new and doesn't have any use case.

Make sure you're just stick with Bitcoin since the other project is sooner or later will turn to be scam or dead project.

Whales can invest in many projects because they have more money than others, so they can choose it easily and determine the amount themselves. The volume shows traders' interest in the project and uses it as an investment or trading tool.

And if they don't know which projects can be used as investment or trading tools, they can use bitcoin, which can provide huge profits in the future.