Trading Volumes

Trading volumes signify the level of market activity and the ease with which the token can be bought or sold, making it a useful indicator of token liquidity. High trading volumes suggest that the market for a token has any number of the following:

  • Substantial liquidity

  • Narrow bid-ask spreads

  • Reduced price slippage

  • Continuous trading.

All of these characteristics make it easier for market participants to execute orders without significant price fluctuations. Moreover, liquidity attracts larger traders and ensures accurate price discovery, contributing to market stability and overall attractiveness for traders.