Total exchange volume is a measure of the total value sold on the exchange(s).
What is total exchange volume?
Total Exchange Volume is the total amount of cryptocurrency on a given exchange. Each day, it is tracked and recorded daily on the blockchain of most all cryptocurrencies in exchange for cash as well as sites that sell them. The number is located on the website of every exchange. An update of the data is made every 24 hours.It is possible to say that this is the amount of money traded on an exchange, just for digital currencies.
What is the daily exchange volume?
Daily exchange volume is the amount of currency that has been sold and bought in the last 24 hours.
The importance of total exchange volume
Trade volume is a better measure of value than market capitalization, trading volume is more accurate in terms of value. At the same time, it takes into account several factors that influence value. As they say, this metric measures not only demand and volume of products, but also active use for cryptocurrencies.
An important factor affecting the cryptocurrency market is volume. On a particular market, the volume is important for determining what kind of cryptocurrencies are traded and how much value will it be in general. In general, markets with large volumes have higher volatility and high liquidity. In markets with low volume, trading in smaller volumes may not have the liquidity to support price movement when large orders are placed.
As it turns out, the main purpose of investment volume is to show how well prices hold up during periods with high activity. When prices are high, volume is low, it indicates that buyers are not yet confident in the sustainability of the upward movement.