Total Exchange Volume is an important metric used by cryptocurrency traders and investors to gauge the overall liquidity of a given market. It is calculated by adding up the total volume of all trades for a specific currency over a certain period of time. This figure gives users an idea of how much money has been exchanged in that market, as well as how many people are actively trading it.
The Total Exchange Volume can also be compared between different exchanges or even different cryptocurrencies on the same exchange. By comparing these figures, users can get an idea of which markets are more liquid than others and thus potentially more profitable to trade on.
It’s worth noting that Total Exchange Volume may not always reflect actual demand for a particular asset; some large transactions (such as those from institutional investors) may not necessarily equate to retail interest in that asset. Therefore, investors should take into account other factors when assessing whether or not to invest in any given cryptoasset, such as its price history and trend analysis rather than just relying solely on exchange volumes alone.
