Cryptocurrencies 24h Volume and Market Cap as price peak indicator (2024)

FAQs

What does 24-hour volume mean in crypto? ›

24H Volume is the amount of buying and selling of a cryptocurrency asset that takes place over a 24-hour period. It is a key point of data for traders found on the Crypto.com Price page. 24H Volume lets traders gauge interest in a cryptocurrency and shows how much it's been traded in a 24-hour time frame.

Then there is the market capitalization (Mkt. Cap.), and the lowest and highest price in the last 24 hours. “Vol. 24H” indicates the volume of trading in the last 24 hours. The supply shows the current number of coins that are already in circulation.

The 24-hour volume section at the top of CoinMarketCap website shows the total value of crypto traded in the past 24 hours. Volume is an extremely important indicator for traders to determine the future profitability of cryptocurrencies.

Market Cap vs Volume

If a coin's 24-hour trading volume exceeds its market cap in a given period, it could mean investors are speculating about its potential growth. It could mean something, or it could be a temporary trend.

A high 24-hour volume means that there is high demand for the symbol and that it is healthy and viable. A low 24-hour volume may indicate that the symbol is not as popular as others.

Key Takeaways

When a stock's trading volume exceeds the number of outstanding shares, it often means a trading catalyst has occurred that is spurring increased buying and selling activity.

For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. It's calculated by multiplying the number of coins in circulation by the current market price of a single coin.

Market cap is a valuation measure that reflects how much the market thinks a company is worth. It is calculated by multiplying the share price by the number of shares outstanding. Dollar volume is a liquidity measure that reflects how easy it is to trade in and out of a stock.

Cryptocurrencies are most commonly traded between 8am to 4pm in local time. While the crypto market is 24/7, your trades are more likely to be executed when there is the highest level of activity. Outside of these hours, when trading is lighter, it can be more difficult to open and close trades.

How do you read a volume indicator crypto? ›

It looks at the prices of a coin at the close. If the close is at a level above that of the previous day, the volume will be added. Alternatively, the volume is subtracted when the closing price is below that of the previous day. This volume indicator is used to predict price movements and confirm price trends.

Typically, high crypto trading volume can indicate a rise in prices, and low volume could imply prices are falling.

Typically, cryptocurrencies with a larger market cap might be seen as less risky than those with smaller caps. Liquidity Indicator: Higher market cap coins typically offer better liquidity, making it easier to buy or sell.

A high market cap signifies that the company has a larger presence in the market. Larger companies may have less growth potential than start-up firms, but established companies may be able to secure financing cheaper, have a more consistent stream of revenue, and capitalize on brand recognition.

In the context of the crypto market, trading volume refers to the total number of shares or coins traded within a given period. It is an important metric that provides insights into the level of market activity and the liquidity of a particular cryptocurrency.

Binance Exchange Overview

Binance is a Centralized exchange that ranks #1 on BitDegree Exchange Tracker. Binance has a trading volume of $6,647,947,198 in the last 24 hours and $5.89T in the last 7 days. Binance currently has 401 cryptocurrencies, 11 fiat currencies and 1590 markets (cryptocurrency trading pairs).