All terms
How much value has traded in a period, usually 24 hours.
Volume shows genuine activity. A rally on thin volume is fragile. A move on heavy volume reflects real participation and tends to hold better.
Volume can also be faked, particularly on smaller exchanges and through wash trading, so compare volume against market cap and check it across several sources.
A token with a 500 million dollar market cap and 3000 dollars of daily volume is effectively untradeable at size.
That volume proves interest. Volume can be manufactured by one actor trading with themselves, and on low fee venues it is cheap to do. Volume next to liquidity and holder count is informative; volume on its own is not.
Common questions
What does volume actually tell me?
How do I spot fake volume?
Where this comes up on the site
The guides that actually use this word, rather than a list of everything we have written.
Where to go next
More trading terms
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