Does Trading Volume really matter ?

[mindrust]

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.

You are surprised because you don't know that most of the trading volume you see on the exchanges or at coinmarketcap are fakes.

There are exchange bots trading for free and creating fake volume to lure more people on those pairs. If you don't forget this fact, you will understand that most of these coins are nothing but ponzi schemes trying to rip off the traders. Whatever million, billion dollars of trading volume you say has no meaning at all.

Stay away from those shitcoins and you will be fine.

[1714845852]

1714845852

[1714845852]

1714845852

[1714845852]

1714845852

[1714845852]

1714845852

[ultrloa]

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 is so important for a token because it can also tell that many people believe on the project where as those tokens who only have less volume which we can say people dislike or doesn't like what they are seeing for that project. It also important if you trading it because you can exchange easily without a problem if the token have huge volume compare to those token doesn't have any volume where you need to wait for people to buy your sell order before your order will get filled.

[Johnyz]

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.

Exchanges have a different volume most of the time, and some can really be manipulated so better to be careful with dealing on those volume. It's important but it can be deceiving most of the time, you should not rely only with the Volume, use other indicators and fundamental analysis to know if the project are really good and that volume can be more possible. Comparing the 2 projects with their volume might not be ideal on where to invest, better to look on their technology itself.

[Mpamaegbu]

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.

Well it goes beyond when an ecosystem is very active to when the statistics released are genuine. For me, I steer clear of projects with low trading volume because it shows less participation and trading activities going on with it. Price can stall in projects with low volume and it could take a while to sell off. Maximum token supply in relation to its price and trading volume is another thing worth looking into while investing in a project.

[gabbie2010]

My trading strategy incorporate volumes of price in many brokers combined together in a single indicator which I used in MT4 platform on my computer, my trading strategy ensured that both volume and prices move upward or downward at the same time however, whenever they move against or opposite to each other that opens up a trading opportunity for long or short coupled with some technical analysis and candlestick patterns based on my trading experience I knew where to pull the trigger, I totally agreed that volume of price is very important aspect of trading though some traders opinionated that their a lot of fake volume by some exchanges but it's better to rely on analysis of volumes of major exchanges.

[Natalim]

Trading Volume is one thing we look for when trading, bigger volume means there is an active trade happening on that particular coin. Though it was been a huge factor, however, it was not just to rely upon it knowing that sometimes it was been manipulated. Aside from looking at its trading volume, we also have to know more about the project just to assure that it was real, and of course, the platform we used. In trading, we need to be wise enough, we don't need to hurry or else, we just lose.

[Mr. Magkaisa]

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.

 -  You know volume is important in crypto trading because that's where you can see if there are buyers for a coin or token on local exchanges such as Binance, kucoin, and others. Because if the volume is low, it means there are few buyers and you will have a hard time selling it.

But of course, be careful because some other coins or tokens can fake the volume. The only thing you need to be the basis for this matter is to always look at the coin first in coinmarketcap and coingecko so you can tell and know how much the volume of the token you are looking for and know.

[Pandu Geddon]

Trading Volume is one thing we look for when trading, bigger volume means there is an active trade happening on that particular coin. Though it was been a huge factor, however, it was not just to rely upon it knowing that sometimes it was been manipulated. Aside from looking at its trading volume, we also have to know more about the project just to assure that it was real, and of course, the platform we used. In trading, we need to be wise enough, we don't need to hurry or else, we just lose.

Maybe that's why some traders switch to some of the assets they trade. especially those who do day trading. Of course, paying attention to the trading volume is very important. Choosing assets for the long term may differ slightly from day trading assets. each exchange platform always provides information regarding the highest trading volume on the platform in 24 hours.
indeed trading volume is not everything for the success of trades made. but it will be an important factor for traders to make their trading plans. the other factors you mention should also be considered.

[YOSHIE]

In the crypto trading market, volume activity is often used by investors and crypto traders as an instrument/indicator to measure liquidity, volume is not just for viewing, but in crypto trading volume has a formula to calculate how many crypto assets are traded and certain crypto assets are in circulation, broadly speaking this volume is the most important moment in crypto trading.

If you want to trade, of course trading activity is needed, to know all that, you must first understand the volume of activity in trading, so volume is an indispensable method of trading.

[Flexystar]

For me it’s prime thing because that’s what executes my order without any further wait. In crypto space it is really important because the market is too volatile and you never know which coin might turn out to be disaster with no more volume to trade.

Unlike everyone has different opinions here I’m sure it’s personal taste for everyone whether to have more volume or no volume at all.

[Eternad]

For me it’s prime thing because that’s what executes my order without any further wait. In crypto space it is really important because the market is too volatile and you never know which coin might turn out to be disaster with no more volume to trade.

Unlike everyone has different opinions here I’m sure it’s personal taste for everyone whether to have more volume or no volume at all.

It is needed to determine whether that coin gets investors interest and we will know how active that coin is. Some maybe doing the dump and pump thing that’s why we will not just depend on it but also search about that coin itself, the team and maybe the reason why there is such volume in that coin. Volume is needed but we need still to analyze it since some projects are doing schemes to pump their projects and we will need to know if its volume is really woth having depending on that coin purpose use or event.

[Hamza2424]

Yes, obviously the volume matters alot for example if the market breaks its major resistance by a good volume that can be a bullish sign but if this happens with the low volume that must be a trap so this can work as an indicator to take positions in the market and volume = Market trust and the healthy market follows the Bull trend

[Franctoshi]

Volume can tell you a lot in the market if not manipulated, it shows what is actually happening in the price of an asset, with volume you will be able to determine the money inflow and outflow in the price of an asset, that is, how many people are buying and selling at any given time.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market. Therefore generally, Volume is a good indicator and really matters a lot when it comes to the price or performance of an asset.

[AmoreJaz]

Volume can tell you a lot in the market if not manipulated, it shows what is actually happening in the price of an asset, with volume you will be able to determine the money inflow and outflow in the price of an asset, that is, how many people are buying and selling at any given time.
Pricisly, even when it comes to trading, I actually use volume to confirm my trade entries in the market, therefore general Volume really matters a lot when it comes to the price or performance of an asset.

this is also an indicator if the project is big or small. but investigate also because some projects practice wash trading in order for them to look good in the trading volume. however, they won't sustain such strategy. but as a trader, you will be more confident getting involved with projects having high trading volumes. but for small ones, usually, they move slow also. so it is not advisable to trade this kind of coin as it would take your time waiting to complete your order.

[justdimin]

Trading volume is very important especially if you're a day trader. A high trading volume indicates that there are many traders that are buying and selling that particular crypto thus a lot of movements are happening around that market. Meanwhile, a low volume doesn't necessarily mean that it is not good to trade. You should also consider the market condition at that time because during bear market, even cryptocurrencies like BTC, ETH, or BNB have low volumes compared when it's bull cycle. People lose interest during those times because cryptos are dumping hard from their ATH.

It also allows you to back out a lot easier as well. Something that has low volume means with enough volume someone could destroy it anytime they want, but with something that is a lot lower that means we are not going to end up seeing something that would work out well for these people neither. I mean it's clear that we are going to have hard time with this situation because people who trade high volume stuff would not have the volatility to make a lot of profit neither.

So, you have to consider what you are going to do, will you end up with something that is low volatility, or will you do low volume, which one looks like a better deal for you?

[judaspriest]

Of course the trading volume is very important because the more volume there is,
then we can know that the whales are accumulating a token or coin, even that can also be a sign that the pump will take place.
trading volume can also be analyzed technically, if you can read it then you will really be successful in your trading.

[NicNacCoin]

Of course trading volume is a very important factor for a project There are various scam projects that fake trading volume to lure people into their project They show people they have enough trading volume.But you notice all these things. Trade on the most popular projects. Don't waste your money unnecessarily trading in some fake projects.

[GreatArkansas]

Of course trading volume is a very important factor for a project There are various scam projects that fake trading volume to lure people into their project They show people they have enough trading volume.But you notice all these things. Trade on the most popular projects. Don't waste your money unnecessarily trading in some fake projects.

I believe that trading volume is more focused on trading. It is measured by the counts of tokens/coins that are being traded for a given time, like 24-hour trading volume. That's why OP sees some coins that have low or high trading volume compared to other altcoins.
There are some projects that got high trading volume but they are not legit, so I will not use trading volume as the main indicator if the project is not legit because it can easily manipulated.

[danherbias07]

It's a piece of information, that's why it is also important.
But don't use it as the basis of how good a coin is. Perhaps, they are just starting out or for whatever reason, they are not being traded yet to a large extent.
I'd go directly to one reputable exchange where a certain coin is available to trade.
I remember before when I put in a sell order for one reward coin from an ICO. It was sold faster than I expected. That made me realize there will still be buyers for coins that are expected to be pumped from the purchasers' own point of view.

[NNRR]

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.