What is Trading Volume?

The 24-hour volume, or trading volume, refers to the total quantity of a specific token (or other asset) that is traded within a 24-hour period.

This metric is widely used in token analytics and is available on all trading analytics platforms. Traders often use the volume indicator to gauge the strength of a trend.

Having high levels of volume may indicate low volatility of the price action

Example of 24h Volume (CoinMarketCap)

Example of 24h Volume (CoinMarketCap)

Why volume is so important?

For token issuers

Despite its role in trending technical analytics, volume also has significant implications for the future of a token project.

Many exchanges and protocols have requirements for listing new tokens, including a minimum average 24-hour trading volume.

For instance, it is common for top tier exchanges to require a minimum average 24-hour trading volume of 500K to 2MM for a given period of time.

The Volume Marketplace allows projects to generate the extra volume they need to meet these requirements and increase visibility in the trading community in a cost-effective way.

For exchanges

Exchanges compete to attract more volume because they earn fees from each transaction. These fees, which are charged to traders as a percentage, can vary based on factors such as monthly trading volume and the staking of the exchange's native token.

Wash trading, a practice performed by some sophisticated traders, can damage an exchange's reputation by inflating its volume.

The Volume Marketplace helps exchanges to increase their real volume and attract new users, generating trading fees from retail volume and reducing their reliance on market makers.

Other interested parties

Why users should prove their volume through zkMakers?

Traders can generate multiple streams of revenue and contribute value to the crypto ecosystem privately by certifying their trading activity. By trading actively, you can: