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What is a Total Exchange Volume and Why is it Important?

  • Total Exchange Volume is the total amount of cryptocurrency that has been exchanged on a cryptocurrency exchange.
  • Daily Exchange volume is the amount of currency that has been traded in the last 24 hours.

What is Total Exchange Volume?

Total Exchange Volume is the total amount of cryptocurrency that has been exchanged on a given cryptocurrency platform.. Every day it is tracked and recorded on the blockchain for almost all cryptocurrency exchanges. The numbers can be found on their exchange’s website. The total value is updated in 24 hours. 

Why is Total Volume Exchange Important?

Total Volume Exchange is a very important indicator for cryptocurrency traders because it displays the amount of money being traded on a given platform. The higher the volume, the more liquid the platform can provide. To extend this, it is easier to trade large amounts of cryptocurrency on exchanges that have higher total exchange volumes.

Total Exchange Volume is more important than the total market cap because it shows individual interests that affect its value. Total Volume Exchange not only measures supply and demand but it also shows active cases and the potential growth of cryptocurrency.

The Total Exchange Volume is one of the most important and influential factors in the crypto market. The volume of a market can determine the value and place of a cryptocurrency trade. Most traders prefer high-volume markets because they have more liquidity and reduced volatility.

The main purpose of Total Exchange Volume is to provide a clear view of how good prices stand on during periods of strong activity. For example, if prices are setting new highs but the total exchange volume is low, then it is more likely to be a fake-out. This means the price is not going to stand out and soon you will see the price going down.

One is  likely to see different prices on different exchanges with a different exchange volume.If the total exchange volume is low, then anyone can move the market and it gives rise to more volatility. If the volume is high, then it is hard to move the market on one side.

Whenever a  low exchange volume is seen, then it is most likely to be low demand and the price could go down. However, when the exchange volume is high, then it is most likely to be in high demand and there is a very good chance that the prices may go up.

On May 31, 2023, here are some current volumes on different exchanges given below:

  • Binance: $8,500,292,503
  • Coinbase Exchange: $1,133,226,508
  • Kraken: $560,638,338
  • KuCoin: $528,648,211
  • OKX: $924,595,517
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