Definition ∞ Increased trading activity signifies a rise in transaction volume for digital assets. This metric reflects a substantial surge in the number of executed trades and the total value of assets exchanged within a specific timeframe. It typically correlates with heightened market interest, enhanced liquidity, and often precedes or accompanies significant price fluctuations. Such activity can be driven by news events, technological advancements, or shifting investor sentiment.
Context ∞ Cryptocurrency news frequently reports on periods of increased trading activity, interpreting it as a signal of market health, speculative interest, or a precursor to major price trends. Analysts closely monitor these volumes across various exchanges to gauge market depth and participation. Regulatory bodies also observe unusual trading spikes for signs of potential market manipulation.