Trading volume – the amount of an asset that changes hands in a given period of time – is a key metric used to track investor price trends and assess the market outlook for a specific coin in terms of liquidity and trader activity. Let’s do it.
The rankings below zoom in on the fate of the five coins that have the largest increase in average daily trading volume this month compared to the previous month. Most of them – though not all – emerged as massive winners in terms of their monthly returns, but the relationship between price and trade was not always what you’d expect.
data from Coin Telegraph Market Pro The stage further sheds light on how these two indicators can affect each other.
As with many other quantitative metrics, trading volume is at the heart of the VORTECS ™ score – an algorithmic comparison of historical and current market conditions derived from billions of data points collected and analyzed by a proprietary machine learning model.
Polygon (MATIC): + 643.79%
Leveraging the huge activity and expansion of the number of projects in the DeFi sector Springing On its stage, Polygon has had a wonderful month, conquering one all-time high (ATH) after another. The coin increased the average daily trading volume by 643%, along with 329% vs. USD and 456% vs. BTC.
Trading volume dynamics faithfully followed each price increase, reaching an impressive $ 11 billion on May 19. On that day, MATIC accounted for up to 4.5% of the total trading volume of the crypto market.
Looking at the VORTECS ™ score chart, it becomes clear that trading volume spikes have been an essential component of every ultra high-score stretch that MATIC sported this month (red circle in the graph). These dark-green sequences, in turn, foreshadow each new phase of the coin’s powerful rally.
Ethereum Classic (ETC): + 229.23%
A legacy series of original Ethereum that has been abandoned by most of the community in the wake of the 2016 DAO robbery, ETC has a small but enthusiastic fanbase and reputation for a network lacking security.
The trading volume has increased after observers were split after ETC actually triggered a 300% price increase in the first week of May. Feedback suddenly comes from users Looking for cheaper alternatives A mistake for new investors to perceive the coin for its better-known cousin to the main Ethereum network.
In any case, at the height of its May 6 rally, ETC ordered a staggering 15.9% of the crypto market’s total trading volume – not too bad for a coin that has increased through years of anonymity.
According to the VORTECS ™ chart, not only was ETC’s performance unexpected – it was historically unique. The combination of market and social conditions prior to the coin’s explosion did not resemble those that had systematically preceded ETC price rises in the past, as evidenced by the largely neutral VORTECS ™ score.
TelCoin (TEL): + 507.8%
Telcoin, a global remittance platform whose tokens have appreciated 437% against the USD and bitcoin versus bitcoin in the past month, has had at least some success due to Polygon’s uptake. The possible reason behind TEL’s boom in early May has been Layer-2 migration The low-cost Polygon network and later token listings on QuickSwap opened up attractive conditions for liquidity providers.
As seen in the graph, it was the QuickSwap moment that caused the largest increase in TEL’s trading volume, not even after a further price increase after a few days.
This was the same jump in trading activity between 2 and 8 May that the VORTECS ™ algorithm picked up and, in conjunction with other component metrics, deemed worthy of a series of high VORTECS ™ scores, which began to shine around three days before the final phase. price hike.
iExec RLC (RLC): + 1,153.62%
The original token RLC of cloud computing platform iExec demonstrated the largest month-to-month increase in average daily trading volume, surprisingly by 1,153% compared to the previous 30-day period. After the May 4 announcement of the Coinbase Pro listing, the coin price began to rise and was raised even more. Waterfall Announcement of further exchange listings, big-name partnerships and collaborations, as well as a developer award program. During the month, RLC delivered 200% against USD and around 300% against Bitcoin.
As the chart provided by data analytics firm The TIE shows, on May 8 and early May 9, the trading volume indicator showed rapid upward momentum with a lag of a few hours. The two lines were then effectively merged, indicating that further increases in trading volume were no longer driven only by price action, but began to respond to the news and freely amplify the sentiment around the coin .
As seen in the graph, the RLC’s VORTECS ™ score was neutral (yellow) in the days before the coin price hike, and marginally accelerated (light green) for some time after the rally unfolded. Was. However, when both price and trading volumes were at their peak, the VORTECS ™ score rapidly went back to neutral (red boxes in the graph), meaning that such solid fluctuations in both price and trading volume had occurred in the past Was not followed. above or below.
In short, this month there were no clear historical examples of RLC in terms of market and social activity regularities that could capture Vortex ™ scores. Rather, it has been increasingly driven by a series of news announcements. This is where Markets Pro is another element of functionality, News earthquake™, comes in trend: In the same graph, it is clear to see how the two listing announcements on Coinbase Pro and Bithumb (the red circle in the chart) came shortly before the rally.
OKB Token: + 253.28%
The average daily trading volume of OKB, an OKEx exchange token, rose more than 250 this month. However, this fact did not translate to a corresponding increase in the price of the utility token: in the same 30 days, OKB lost 18.76% against the USD and gained only 4.89% against the troubled bitcoin.
A look at the token price versus trading volume chart presents some explanation of this discrepancy. While trading volumes largely reflected price fluctuations in the first half of the month, they both deviated substantially during the market-wide recession times, around 19 and 20 May. As the price declined, the trading volume increased.
The key to this seemingly contradictory dynamics lies in the nature of the property. To keep the value of the token high, OKEx every three months OKB reduces supply By burning a few million coins and buying them back. As the current burning period is set to expire at the end of May, some traders are likely to place bets on OKB, when other digital assets were in a tailspin, thanks to guaranteed buyback liquidity. In fact, the increase in trading volume supported a brief rebound, yet it could only be continued for a few days until the asset started to fall again.
Note how the VORTECS ™ algorithm was surprised by the May 20 increase in trading volume as the score remained neutral. A continuous learning model, it has certainly seen such token burn-induced spikes before – and, apparently, these spikes in the past have not always spell significant price increases.
Any single metric describing an asset’s market outlook can be informative or misleading in itself, yet within a recurring pattern of other metrics (including price action, sentiment, and tweet volume) of the VORTECS ™ algorithm. It becomes increasingly more useful when relevant.
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