TRADING & AMMS
Volume (Trading Volume)
Definition
Trading volume is the total amount of an asset traded over a specific period, usually measured in USD value or number of tokens. High volume indicates active trading and better price discovery.
Example
Example
If $500 million worth of ETH trades across all exchanges in 24 hours, that represents ETH's daily trading volume.
Risks to Consider
Risks
- Low volume illiquidity
- Wash trading
- Volume manipulation