Definition ∞ Spending volume represents the total monetary value of digital assets transacted or utilized within a specific period across a blockchain network or decentralized application. This metric indicates the level of economic activity and utility of a particular cryptocurrency or protocol. High spending volume often correlates with network adoption and overall health. It reflects active participation.
Context ∞ Analysts closely monitor spending volume in cryptocurrency markets as an indicator of real-world usage and market liquidity. A sustained increase can signal growing utility or demand for a digital asset. Conversely, a decline might suggest reduced activity or shifting market interest, influencing investment decisions.
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