In the context of cryptocurrency, ‘volume’ refers to the total amount of a particular cryptocurrency that has been traded within a specific time frame, typically measured in units of the cryptocurrency (e.g., BTC, ETH) or in terms of its equivalent value in fiat currency (e.g., US dollars, euros). Volume indicates the level of trading activity for a particular asset.
Traders often pay attention to volume when analysing market trends and making trading decisions. High trading volume suggests strong interest and liquidity in the market, while low volume may indicate less active trading or interest in that particular cryptocurrency at that time.
Volume data is commonly displayed in trading charts and used in technical analysis.
