Trading Volume Increase

Definition ∞ Trading volume increase signifies a rise in the total number of assets exchanged between buyers and sellers over a specific period. This metric indicates heightened market activity and liquidity for a particular digital asset or across the broader cryptocurrency market. A significant increase in volume often accompanies substantial price movements, confirming the strength of a trend or a major market event. It reflects increased investor participation and interest, suggesting greater market depth.
Context ∞ Trading volume increase is a key indicator closely monitored and reported in cryptocurrency news, providing insight into market momentum and investor engagement. High volume can validate price trends, indicating strong conviction behind market movements. Analysts often examine volume patterns to predict future price action and assess the overall health of the digital asset market.