It obvious that higher trading volum = more liquidity. liquidity refers to the ability of a coin to be converted into cash or other coins easily. Liquidity is important for any tradeable assets including cryptocurrencies.
Unfortunately, I have obversed that most coins listed this days on certain exchanges are without volume, that is, illiquid.
It is very clear that this situation was not common found before 2019.
What could be the reasons for this abnormalities. Your thoughts.
More trading volume means that it's much safer to invest on that coin. As well as with the volume of the exchange, the more volume the exchange has, the more attractive it is for the trader. That is why some exchanges are faking the volumes of coins on their exchange. If there is lot of volume, that most likely means that you can easily buy and sell any coins that you wanted as long as there are people who are willing to book trades on that coin on a particular pair.
It's hard to trade on low-volume coins. It's risky, so make sure that you've think of it before you proceed on engaging trades on those coins.
Those zero volume coins are sometimes considered dead because no one wants to try to invest into it.