Like liquidity, trading volume is also an imperative metric for the success of an exchange. It is basically a measure of the amount of a cryptocurrency that has been traded in the last 24 hours. From volume, users can infer the movements and direction of a cryptocurrency. An asset with frequent heavy movements won’t gain traction even if it has a high trading volume. Conversely, if a crypto has less volume but experiences heavy trading in the last 24 hours, it signifies that there is some support behind the transactions of this currency.

Though trading volume is a crucial parameter in the crypto sphere, there are ample factors that can impact this parameter impeccably. Some of the key factors are:

Cryptocurrency regulation

Proper regulations are vital for a cryptocurrency to make a statement in the market. Different nations have different perceptions of digital assets. While some have taken necessary steps to regulate them, others have brought forth stricter regulations or forged ahead to ban their use. The decisions made by the governments regarding the regulation of the cryptocurrencies impact greatly on their trading. If regulations support the digital currencies, their prices tend to escalate and trading volume experiences an elevation. However, if strict regulations are introduced or their trading is banned, their prices drop, leading to a decline in the trading volume.


The value and trading volume of a cryptocurrency is determined by its usability. A digital currency that has the potential to solve real-world problems are deemed to have higher value and consequently, shines in the market. For example, Bitcoin, the founding father of the cryptocurrencies, is a solution of the double-spending problem, a barrier, technocrats had been striving to overcome since two decades by making digital money a reality. Bitcoin adopted a peer-to-peer decentralized timestamp server to create a computational proof of the sequential transactions to overcome this issue. There are many other reasons behind the more usability of Bitcoin, which in turn, has increased its market price as well as trading volume. Besides, as per the Joseph Oreste perspective, who is the founder and CEO of Qupon, regulations and usability are the major factors to foster the trading volume of the digital assets in a cryptocoin exchange.

Market Forces

The supply and demand of cryptocurrencies also immensely impact their trading volume on a digital asset exchange platform. If a cryptocurrency is in high supply but low demand, its value is more likely to dwindle. Similarly, if it is in high demand but low supply, its value will increase. This is especially applicable for Bitcoin whose trading volume is strongly linked with its demand and supply.
These are the key factors that can affect the trading volume of the cryptocurrency in the exchange. So, always make sure to list the assets in your online coin trading platform that are completely regulated or have already disrupted the crypto market.