Trading volume

Volume adds up the size of all trades in a market over a given window, measured in units of the asset or, more often, in dollars. Each trade counts once, regardless of which side started it. Data sites publish 24-hour volume per coin, per exchange and per trading pair, with spot and derivatives figures shown separately.

Analysts use volume to judge the strength of a price move: a breakout on high volume is considered more convincing than one on thin trading. Spikes often accompany news, liquidations or new token listings. DEX volume is tracked directly on-chain, and comparisons between DEX and CEX volume, or between spot and derivatives, are common market indicators.

Reported volume is not always reliable. Some exchanges and token projects have inflated their figures with wash trading, in which the same party trades with itself, so data providers weight or filter venues. Comparing volume with order book depth and with the number of real trades gives a more honest picture.