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.
Topic: Does Trading Volume really matter ? (Read 938 times)
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.
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.
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.
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.
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. 
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.
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.
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.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.
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.
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 ,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.
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.
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.
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.
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.
- 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.
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.
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.
Volume is important and it is the measure by which most traders trade. The trading volume of a token represents its activity level, and it can also attract traders to trade there, indicating an increase in demand for it, which will also have a positive impact on the price.
There are many projects that falsify transaction volume data in order to attract more investors. Therefore, when choosing a trading project, you should consider multiple factors and not rely solely on trading volume.
There are many projects that falsify transaction volume data in order to attract more investors. Therefore, when choosing a trading project, you should consider multiple factors and not rely solely on trading volume.
In trading some of prediction fail because you will see a particular coin increasing in volume but all of a sudden you will notice it disappear. I once bought a coin which later disappointed me, to me truly the trading volume don't matter.
right now it's very difficult to see trading volume determine whether the coin is worth investing in, because we know FTT is a top altcoin which does have a large trading volume like BNB,
but FTT went bankrupt and dropped to -99%, yes from this case of course we know that trading volume in the cryptocurrency world cannot be the benchmark of a project, so invest wisely.
Large volume cannot be a benchmark that is always correct. We'll see in the past, LUNA had a large volume but eventually went bankrupt because the founders were incompetent in managing LUNA, and now it's happening again at FTT. everyone will be at risk of experiencing the same thing, we really have to be prepared with the assets we have. Crypto has a high risk, loss is a risk that must be borne alone. Trade according to the rules and according to Technical Analysis. Doing research will also be very important. but FTT went bankrupt and dropped to -99%, yes from this case of course we know that trading volume in the cryptocurrency world cannot be the benchmark of a project, so invest wisely.
A coin's trading volume indicates how much that token is traded .If there is a huge amount of traders for a token then it is normal for the trading volume of that token to also be huge. But a coin cannot be judged by its trading volume. Because there are many tokens whose trading volume was millions of dollars per day but after a while it became a scam . But there are many tokens whose trading volume is small but in one phase it has occupied a very good position in the market. so trading volume is not a big matter
I am sure the problem is not in scam coins or not. This relates to trading analysis which I think will be very important when a trader pays attention to trading volume when placing their money on a project, or starting a trade.especially for those day traders, of course, the first factor that might be noticed is the daily trading volume. where traders can see the potential for day trading or long-term investing.
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.
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.
OF course trading volume matters. The lower the trading volume, the less you will be to liquidate your coins/tokens at a moments notice. In fact, if you are making big trades, you might not even be able to sell. Or at least not for the price you want to.
Also low trading volume is an indicator that there is no interest in the project behind the investment. A dead/unpopular project is never a good sign.
Not to mention that low volume makes it very easy for whales to manipulate the market by introducing their own rogue market-making strategies which will only damage the project further.
Also, how do you trust for example, TVL, if their trading volume is so low but their market cap is so high? Something sketchy seems to be going on there. Seems like a red flag to me.
A coin's trading volume indicates how much that token is traded .If there is a huge amount of traders for a token then it is normal for the trading volume of that token to also be huge. But a coin cannot be judged by its trading volume. Because there are many tokens whose trading volume was millions of dollars per day but after a while it became a scam . But there are many tokens whose trading volume is small but in one phase it has occupied a very good position in the market. so trading volume is not a big matter
scalpers with the ability to read the market well will certainly benefit greatly if they trade on exchanges with large volumes. But if you are unable to read the market and have no knowledge of charts and candles, then you need to be careful. scalping is fast trading that takes advantage of any fluctuations to take profits. Big volume is very important, but you need to be careful when FOMO occurs and the market price is above.
Even for the most experienced scalpers, the market often surprises, especially when it comes to trading in large amounts. If everything were so simple, then many would like to be scalpers, but the situation is the opposite, more often I see how traders write that they are very tired of scalping and this activity is not always profitable. The ability to read a chart is not enough to be a successful trader.Dealing with the small market circulation does bring a good profit only to the people who bought a lot when it's low and upon people having a good tons of transaction and exchange there's a possibility to gain huge amount but in a large market circulation there's an instances that's only for a small amount. For a small cap tokens hard to make a TA because whales can make a manipulations easily.
but FTT went bankrupt and dropped to -99%, yes from this case of course we know that trading volume in the cryptocurrency world cannot be the benchmark of a project, so invest wisely.
scalpers with the ability to read the market well will certainly benefit greatly if they trade on exchanges with large volumes. But if you are unable to read the market and have no knowledge of charts and candles, then you need to be careful. scalping is fast trading that takes advantage of any fluctuations to take profits. Big volume is very important, but you need to be careful when FOMO occurs and the market price is above.
Even for the most experienced scalpers, the market often surprises, especially when it comes to trading in large amounts. If everything were so simple, then many would like to be scalpers, but the situation is the opposite, more often I see how traders write that they are very tired of scalping and this activity is not always profitable. The ability to read a chart is not enough to be a successful trader.Dealing with the small market circulation does bring a good profit only to the people who bought a lot when it's low and upon people having a good tons of transaction and exchange there's a possibility to gain huge amount but in a large market circulation there's an instances that's only for a small amount. For a small cap tokens hard to make a TA because whales can make a manipulations easily.
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