Trading Volume Metrics

Definition ∞ Trading volume metrics are quantitative measures that track the total amount of a specific digital asset traded over a given period. These metrics provide insight into market activity, liquidity, and investor interest. High trading volume often indicates strong market participation and price validation.
Context ∞ The discussion around trading volume metrics in crypto often addresses concerns about wash trading and inflated figures reported by some exchanges. A critical future development involves the implementation of more reliable and standardized reporting methods across the industry. This will help provide a clearer and more accurate picture of genuine market activity.