- Glossary
- Volume
Volume
Volume shows the total amount of transactions that have occurred in a given time period and reflects liquidity, that is, determines how easily an asset can be bought and sold.
Volume refers to the total amount of a financial asset or market traded in a specific time period. Particularly in the cryptocurrency market, the volume of an asset is often associated with the number of buying and selling transactions that occur within a certain period of time. A high trading volume can reflect the popularity and liquidity of an asset, resulting in lower price fluctuations. A low trading volume can generally indicate that the asset s liquidity is low and price movements may be more volatile. Volume is an important indicator for assessing the level of activity in the markets and is used in technical analysis to verify the reliability of price movements.