Overview
Trading volume is the total value of trades in a market or protocol over a period. It measures activity and liquidity. High volume signals a healthy, active market.
How It Works
Volume aggregates the value of all executed trades. It is reported by exchanges, DEXs, and aggregators. It correlates with liquidity and fee revenue.
Why It Matters
Trading volume indicates market adoption and generates protocol revenue. It is a key metric for comparing venues. It also affects price stability.
Related Concepts
Trading volume relates to DEXs, Liquidity, and Token Terminal metrics. It drives protocol fees and adoption.