Volume (Vol) refers to the total value or number of coins and tokens traded within a specific period, typically measured over the past 24 hours. It includes all buy and sell transactions across exchanges and is one of the most important indicators of market activity, liquidity, and trader interest.
Volume
What is volume?
Volume in the crypto market refers to the total value or number of coins and tokens traded within a specific period, typically measured over the past 24 hours. It includes all buy and sell transactions across exchanges and is one of the most important indicators of market activity, liquidity, and trader interest.
Crypto trading volume can be expressed in token units (e.g., number of BTC traded) or fiat value (e.g., USD equivalent). It is calculated by multiplying the price of each trade by the number of units traded, then summing those values across all transactions for the chosen time frame:
Trading Volume = Σ (Trade Price × Number of Units Traded)
High trading volume indicates strong market participation and liquidity, making it easier for traders to enter and exit positions with minimal slippage. It can also confirm price trends, as rising prices supported by high volume often suggest genuine buying momentum. Conversely, low volume may indicate weak interest, lower liquidity, or potential price manipulation.
For traders and analysts, volume is a key metric used in technical analysis, market sentiment tracking, and volatility assessment. It helps identify breakout points, trend reversals, and overall confidence in a market move.
