Volume (7D)

Volume is the amount of money flowing in and out of a particular cryptocurrency asset for a given period of time — in this case, seven days. Closely related to liquidity, volume shows the total amount being traded, while Volume (7D) is a metric and tool that indicates to potential traders how much interest is in an asset.

For example, 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.

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.

Note that, regarding non-fungible tokens (NFTs), volume can be manipulated, as ‘wash trading’ can occur.

Key Takeaway

Volume (7D) is the total amount of a cryptocurrency asset traded within a seven-day period.

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