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Trading Volume
Trading volume is the total quantity of a cryptocurrency or asset that has been traded over a specific period, usually within 24 hours. It is a key indicator of market activity, liquidity, and investor interest. Higher trading volume suggests greater interest in a particular asset and can lead to more price stability. In contrast, low trading volume may indicate a lack of interest or liquidity, which could result in higher price volatility. For example, Bitcoin often experiences higher trading volumes during major price movements or news events.
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