Trade volume is a metric that tracks the total amount of a cryptocurrency, such as Bitcoin, that is traded across all exchanges over a specific time period, often 24 hours. It refers to the overall buying and selling activity in a crypto market. Analyzing changes in daily trade volume can reveal shifts in market trends and sentiment. For example, surging volume indicates growing enthusiasm and potential further price growth, while declining volume may signal waning interest and weakness.
Comparing trade volume to price trends also offers insights – high volume backing a price rise suggests a valid trend, while low volume means the move may lack staying power. Trade volume helps investors gauge changes in market momentum and demand. For individual coins, volume spikes hint at heightened attention while dips imply lessening interest over time.