Measuring volume is essential to a successful trading strategy. For better understanding of crypto market values lets consider this top three crypto currencies as an example. To many people in crypto this is a key Bitcoin graph to understand the entire space. Smaller market cap coins can easily double than coins with larger market cap. Volume as a metric is a great way to tell if a coin is healthy, as it shows the general interest in the coin and liquidity of the market around the coin. Now, although this is illegal in other markets and known as price manipulation, in the cryptocurrency markets it is actually becoming a much more common practice. Essentially, it represents the hypothetical cost to buy every single available unit of the crypto asset (assuming no slippage). Coinranking If were betting that the price of Bitcoin or another crypto will go up or down, we must have volume data that indicates an inflow or outflow of liquidity is coming. To know the current market trend take a look at crypto market cap. How important is the ratio of volume to market cap in crypto? That means that Bitcoin has a very limited amount of coins that are yet to be mined and that the coins in circulation should become more valuable as the supply of new coins dwindle. You should conduct your own research, review, analyse and verify our content before relying on them. Another metric that is considered these days is Fully Diluted Valuation (FDV). 1 market in the world for trading volumeby a wide margin. Market Cap: Crypto API Site Widgets. The market cap now doubles to $10 million. Monthly Volume Rankings (Currency) | CoinMarketCap Volume is arguably the most important metric for day traders. The indicator is simple, without a fixed range, and measures the correlation between volume and price on the daily. This is another commonly used metric in establishing coin value. , Apple, Microsoft, and AMD were among the most actively traded stocks at press time, and theyre also among the indexs most valuable companies. This is a component of all the above factors. The market cap of a coin is the total value of all coins in circulation and is one metric used to determine value. This website uses cookies for functionality, analytics and advertising purposes as described in our. Uniswap managed to stay on top, dominating market share in the decentralized cryptocurrency exchange sector. So now you may ask there are so many alt coins with low supply why arent their prices high? Find out which exchanges have contributed to this uptrend! The formula is the same, but that is the commonality. This is where cryptocurrency markets differ from traditional stock markets, which have clearer tendencies toward a correlation. As mentioned above, however, strategies like wash trading also can create false volume and is very difficult to see, unless you have a strong understanding of market history and statistics. You then sell me back 0.5 of that coin for $5. Why do they fill & how to spot gap on Bitcoin CME chart? Mid-cap ($2 billion to $10 billion). The Weird and Wonderful Relationship Between Crypto Market WebExplore top cryptocurrencies with Crypto.com, where you can find real-time price, coins market cap, price charts, historical data and currency converter. Historically, volume peaked during the biggest crashes. For those looking to invest in the cryptocurrency sector, CoinBeat staff traders stay informed and up to date on market conditions and know the tricks in evaluating and analyzing a cryptocurrency.