What Is Volume (7D)?
Volume is the amount of money flowing in and out of a particular asset for a given period of time — in this case, seven days. It is a metric and tool that indicates to potential traders how much interest is in an asset. A large amount of volume on a cryptocurrency may indicate an asset’s high popularity.
However, little to no volume on an asset may mean it isn’t being traded, so even if the asset has an appealing chart, if there is no volume, it may be an indication there is not much action.
How Exchanges Use the Volume (7D) Value
Exchanges typically profit on volume, as they charge fees per trade on their platform. Since they are a way for users to easily buy and sell cryptocurrencies, exchanges are known to regularly handle a large amount of volume.
Volume is closely related to liquidity, as it shows the total amount being traded; liquidity shows how much can be traded at any given price. Note that, regarding non-fungible tokens (NFTs), volume can be manipulated, as ‘wash trading’ can occur.