Trading volume – the amount of an asset that changed owners during a given period – is one of the key metrics used by investors to monitor price trends and evaluate the market outlook of a particular coin in terms of the trader’s liquidity and activity.
The rating below shows the wealth of the five coins that saw the largest increase in average daily trading volume this month compared to the previous month. Most of them – though not all – turned out to be a huge winner in terms of their monthly returns, but the relationship between price and trading was not always what you would expect.
Data from Cointelegraph Markets Pro the platform sheds more light on how the two indicators can interact.
Together with many other quantitative metrics, trading volume is at the heart of the VORTECS skóre score – an algorithmic comparison of historical and current market conditions derived from billions of data points collected and analyzed by its own machine learning model.
Polygon (MATIC): + 643.79%
Making money from growing activities in the decentralized financing (DeFi) sector and expanding the number of projects jumped on his platform, Polygon has had a fantastic month, with his MATIC token conquering one historically high after another. The coin added 329% vs. US dollar and 456% vs. bitcoin (BTC) together with a 643% increase in the average daily trading volume.
The dynamics of trading volume faithfully followed the rise of each price and reached an impressive $ 11 billion on May 19. On that day, MATIC was responsible for up to 4.5% of the total cryptocurrent volume.
From the point of view of the VORTECS skóre score chart, it is clear that the peaks in the trading volume were an essential part of every section with a very high score that MATIC sports this month (red circles in the chart). These dark green sequences, in turn, foreshadowed each new part of the powerful rally coin.
Ethereum Classic (ETC): + 229.23%
The legacy chain of the original Ethereum, which was abandoned by a large part of the community as a result of the 2016 DAO robbery, Ethereum Classic (ETC) has a small but enthusiastic fan base and a network reputation without security.
Observers are divided on what exactly triggered the 300% price run of the ETC, closely followed by a sharp trading volume, in the first week of May. Opinions range from users who are suddenly looking for cheaper alternatives to the main Ethereum network, to new investors swap the coin for your famous cousin.
In any case, at the peak of its rally on May 6, the ETC ordered a shocking 15.9% of the total cryptocurrent trade – which is not so bad for a coin that has grown out of years of oblivion.
As for the VORTECS chart nejen, not only did the ETC show the unexpected – it was historically unrivaled. The combination of market and social conditions that preceded the coin explosion was not similar to those that systematically came before the ETC price jumps in the past, as evidenced by the largely neutral VORTECS score ™.
Telcoin (TEL): + 507.8%
Telcoin, the global money transfer platform, whose token has strengthened by 437% against the dollar and 600% against bitcoin over the past month, owes its success to at least the fiery run of Polygon. The probable reason for the increase in TEL at the beginning of May was and migration of the second layer to the Polygon network with lower fees and the subsequent enrollment of a token on QuickSwap, which opened up attractive conditions for liquidity providers.
As can be seen in the chart, it was the moment QuickSwap caused the largest increase in TEL trading, rather than the even larger price increase that followed a few days later.
It was the same increase in business activity between May 2 and 8 that captured the VORTECS algorit algorithm and, in conjunction with the other metrics that make it up, considered it worthy of a series of high VORTECS skóre scores that began flashing about three days before the last leg of the price increase. .
iExec (RLC): + 1153.62%
RLC, the native token of the iExec cloud computing platform, showed the largest month-on-month growth in average daily trading volume and added an incredible 1.153% compared to the previous 30-day period. The price of the coin began to rise after the announcement of the Coinbase Pro list on May 4 and was further strengthened a cascade of other exchange lists, significant partnerships and collaborations, as well as announcements of a developer rewards program. In a month, the RLC generated 200% gains against the dollar and almost 300% against bitcoin.
As the chart provided by TIE for data analysis suggests, on May 8 and early May 9, the trading volume indicator reflected a sharp rise in price movements with a delay of several hours. The two lines then merged effectively, suggesting that the further increase in trading volume was no longer driven solely by price action, but began to respond to news and rising coin sentiment independently.
As can be seen from the graph, the RLC VORTECS skóre score was neutral (yellow) in the days before the coin price peak and it was briefly shown that the rally developed, slightly bullish (light green). However, when both price and trading volume peaked, the VORTECS skóre score went back from bullish to neutral (red boxes in the chart) – meaning that in the past, after these concentrated price and trading volume increases, the price did not consistently be monitored to go up or down.
In short, the RLC run this month did not have a clear historical precedent in terms of market patterns and social activity that the VORTECS score could capture. Rather, it was driven by a series of bullish reports. This is where another element of Markets Pro NewsQuakesPřichází, comes into play: In the same chart it is clear how shortly before the competition came two announcements for inclusion on the list, on Coinbase Pro and Bithumb (red circle in the chart).
OKB: + 253.28%
The average daily trading volume of OKB, the native token of OKEx cryptocurrencies, increased by more than 250% this month. However, this fact was not reflected in a corresponding increase in the price of the utility token: In the same 30 days, OKB lost 18.76% against the dollar and gained only 4.89% against the harassed bitcoin.
Graphical representation of the token price vs. trading volume offers some explanation for this discrepancy. While trading volumes largely reflected price movements in the first half of the month, the two diverged significantly around May 19 and 20, at a time of market downturn. As the price fell, trading volume shot up.
The key to this seemingly paradoxical dynamic lies in the nature of the asset. In the menu, keep the value of the OKEx token high reduces OKB’s stocks are delivered every three months by repurchasing and burning several million coins. As the current combustion period is due to expire at the end of May, some traders have probably bet that OKB will remain afloat thanks to guaranteed liquidity of repurchases when other digital assets have been at the end. Indeed, the increase in trading volume supported the short recovery, yet it could only be sustained for a few days before the asset began to shift down again.
Notice how the VORTECS algorit algorithm remained unaffected by the increase in trading volume on May 20, as the score remained neutral. The ever-learning model has certainly seen such token-inspired tips – and apparently in the past, these spikes didn’t always mean a significant increase in prices.
Any single metric describing an asset’s market outlook may in itself be uninformative or even misleading, yet it becomes exponentially more useful when contextualized within the repetitive patterns of other metrics of the VORTECS algorit algorithm (which include price action, sentiment, and tweet volume).
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