What is Low trading volume?

You may have seen the term ‘low volume’ on some of Coinranking’s coin pages. Read further to find out what that means >>

What is trading volume?

Trading volume refers to the total value of all coin trades within a specific time frame, usually 24 hours. It includes both buying and selling activities and reflects the overall interest and activity in a cryptocurrency.

When is the trading volume low?

Low trading volume occurs when the total value of trades for a cryptocurrency falls below $500,000 within 24 hours. This indicates limited demand and liquidity, making it harder to buy or sell the token at a stable price. Low trading volumes are often associated with higher volatility and price uncertainty.

Ranking penalty

Cryptocurrencies with low trading volumes often receive a lower ranking due to their reduced market activity. Coins with limited liquidity and demand may be less reliable for traders, as they make transactions harder and riskier.

Ranking penalties help ensure that more active and stable tokens are highlighted, creating a better experience for users searching for trustworthy and liquid assets. It prioritizes transparency and encourages projects to maintain strong trading volumes.