Does Trading Volume really matter ?

[Findingnemo]

Trading volume means how much an asset is traded on an exchange so if the numbers are high then more people are buying and selling and when its low not much people interested in it. For day trading it matters more because to make profit at the right time it is important to have enough volume for their trades.

However trading volume can be faked easily with fake trade orders by the exchange itself and it's a common practice done by almost all the exchange to hype the project for short term and its called wash trading so don't make investment based on trading volume alone.

[Hypnosis00]

It is for OP to understand that Trading Volume signifies something big which could influence your trading output.
 - huge volume means there is an active trading event and the chances for you to earn more in a short period of time as it was easy to fill our buy/sell orders
 - low volume means only a few traders have used that coin and the chances for you to wait longer to fill your buy/sell orders, earning is slow

As we can see, it matters on time and that is a significant factor also that could affect our trading.

[oprahwindfury]

The higher the marketcap, the logical higher the exchanging volume can be. I'm not discussing marketcap in that frame of mind, of a specific trade, contrasting it and the exchanging volume of the trade. Assuming you are somebody who truly do truly very much want to stick into laid out coins or ventures then it is something that you would view.

[tvplus006]

The higher the marketcap, the logical higher the exchanging volume can be...

This will be true only if the coin is listed on large centralized and decentralized exchanges. But if the coin is traded only on one site, it is very easy to increase its price, but the volume will remain very low. Here is an example: NXM coin - https://coinmarketcap.com/currencies/nxm/markets / is traded on a single platform and has a marketcap of $267 million, but at the same time the daily volume is only $ 1,700.

[Osama Maaz]

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 are some mystery happens in crypto, fake volume.

Very good explanation ,
Trading Volume matters because it ensures that the potential of public demand of buying and selling and crypto or stock, I advise everyone to only invest your major funds in liquid market where you easily sell your investment ,
Also choosing high volume trading platform / broker is reduce your chances of investing in scam project.

[jaberwock]

Trading volume means how much an asset is traded on an exchange so if the numbers are high then more people are buying and selling and when its low not much people interested in it. For day trading it matters more because to make profit at the right time it is important to have enough volume for their trades.

However trading volume can be faked easily with fake trade orders by the exchange itself and it's a common practice done by almost all the exchange to hype the project for short term and its called wash trading so don't make investment based on trading volume alone.

A shady exchange can fake volume but on a non shady exchange I think the one that can fake volume are the project owners but a decent exchange should detect this kind of activity and delist the coin immediately because people can lose money with it and people can complain on why this kind of activity is allowed on a reputable exchange.

For an established cryptos, it's already given that their volumes are high and we do not need to question it anymore but only those who are still new to us. We need to investigate further if the volumes that they are getting are legit. In conclusion, volume does really matter in trading but we shouldn't disregard other factors as well.

[virasisog]

As for me, the trading volume is one of the basis that investors and traders are checking on to see the potential and activeness of a project. It's hard to rely on a coin without any trading volume because that simply means that people don't have much interest in it. Coins with higher volume have a better possibility to stay active in the long run and would be profitable for traders since it has a better trading number. It will also show up the better potential of a project if it's listed on a big exchange.

[Questat]

As for me, the trading volume is one of the basis that investors and traders are checking on to see the potential and activeness of a project. It's hard to rely on a coin without any trading volume because that simply means that people don't have much interest in it. Coins with higher volume have a better possibility to stay active in the long run and would be profitable for traders since it has a better trading number. It will also show up the better potential of a project if it's listed on a big exchange.

Some developers and trading exchanges had faked their volume in order to gain attraction which is one reason why many traders don't just rely on it. But just like you, I see how important it was and trading volume means a lot to traders as this will tells us that this coin has a good market history and people continue trading. But of course, it is also important for us to check the background of the project and so the exchanges where it was listed just to assure that we are putting our money to safety (at least), not in a scam exchange.

[Rengga Jati]

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 ?

Trading voume becomes one of the market indicators to analyze when doing trading or investment activities.This is to measure the volume of the coin or token traded. Higher the trading volume means high activity on the coin or token. This is one of the important eleemnts to analize if you wnat to search that the coin or token is actually profitbale of rtarding o rnot. We cna alos see the market activities from the trading vlume. Moroever, in the market, we can also measure their volume in certain particular periods, so we can see and analyze in which time certain coins or tokens are tradable highly.

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 could say like this, because after all trading volume is one of the factors that the project managed to enter and develop on the exchange or was stuck and failed. Because, the more trading activities, the better the development. Even though there will certainly be many obstacles and challenges to be faced, if you can survive and have a significant increase in trading volume, then it is also worth thinking about. However, sometimes it's easy to get stuck because there are several exchanges that might be able to manipulate the trading volume itself. therefore, always be vigilant in investing and trading anything.

[JohnBitCo]

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.

For professional traders, trading volume matters a lot. The reason for this is that technical analysis works best in coins that have more trading volume as compared to coins with less trading volume.

If a coin has less trading volume, it can easily be manipulated by the whales and it can have a sudden pump or dump that is hard to predict and hence traders usually lose money in those low volume coins.

[Ben Barubal]

    Volume is really important in trading, because this is where you can see if an exchange is good to use or not, even with the altcoins you want to trade, volume is also important because this is where we will know if there are people who trust the this coin

Here you will also know how many buyers and sellers there are so that you will not hesitate in your trading activity. Because, if you see that there are only sellers in a crypto coin and you don't see any buyers, there is no reason for you to buy that coin, that's the logic I see here.

[Kgdktac]

trading volume can give an indication of the level of activity and interest in a particular project, as well as its liquidity, but it is not the only factor to consider when evaluating a project. For example, a project with high trading volume may also have a high level of volatility, making it more risky. On the other hand, a project with low trading volume may indicate a lack of interest, which may not be attractive to potential investors.

    TVL is a better indicator of the overall health and adoption of a DeFi protocol, as it reflects the amount of assets being held and utilized within the ecosystem. This can provide a sense of the project's popularity and the level of trust being placed in it.

as for the differences in trading volume and TVL between projects, there could be many factors to consider, such as the project's focus, marketing efforts, competition, and overall investor sentiment.