The task of the trade volume when evaluating cryptocurrency: a case study on Cardano (ADA) and non-fungial tokens (NFTS) **
In the world of cryptocurrencies, the trading volume is often referred to as the key indicator for the value of a coin. However, the influence goes far beyond mere speculation. In this article we will examine how the trading volume influences the evaluation of cryptocurrency tokens such as Cardano (ADA) and non-deficient tokens (NFTS).
Commercial volume: a key indicator
The trading volume refers to the total amount of the coins that are traded within a certain period of time. For investors, it is important to understand that higher trade volumes can be both an indicator of the strength of a coin and their potential volatility.
A strong trading volume indicates the demand for a certain cryptocurrency, which indicates the popularity of the dealers. Conversely, low commercial volumes can indicate weak interest or speculative activities on the market.
Cardano (ADA) and trading volume
In 2017, Cardano (ADA) experienced significant price fluctuations after a number of intelligent contracts weakened weaknesses in its underlying technology. As a result, ADA’s trading volume rose and reached an all-time high of $ 5.4 billion on July 27, 2018.
The increase in the commercial volume was largely powered by institutional investors and individual dealers who wanted to use the price increase of the coin. This increased demand in connection with Cardano’s growing reputation as a more robust and safe alternative to Ethereum (ETH) contributed to his meteoric increase.
Non-fungable token (NFTS) and trading volume **
The quick growth of NFTs in recent years has significantly influenced their evaluation. In 2021, the NFT market experienced an unprecedented price volatility, with some platforms experiencing price fluctuations of over 50% in a single day. This extreme sensitivity to price fluctuations is largely attributed to the trading volume.
NFF prices are strongly influenced by market moods and speculation. The strong trade volume shows a high demand for these unique digital collector’s pieces and increases the prices. Conversely, a low trade volume of stagnating interest or a reduced demand can indicate what leads to lower prices.
case study: Cardano (ADA) NFT market
In order to illustrate the effects of the trading volume on the evaluation of ADA, we analyzed its NFF market. On February 1, 2023, a significant increase in the commercial volume led from the NFT price from ADA from $ 0.44 per token.
This increase was largely driven by institutional investors and individual dealers who wanted to use the growing call of the coin as a stable and safe platform for digital property. When Ada’s NFT market continued to grow, the trading volume remained increased, which continued to appreciate it.
Diploma
The trading volume is a critical factor in determining cryptocurrency reviews. The influence goes far beyond mere speculation, with strong volumes indicate on request and potential for price increases. For Cardano (ADA) and NFTS, a high trading volume has played an important role in the design of their reviews.
While the cryptocurrency market is developing, the understanding of the interaction between trading volume and evaluation for investors who try to control the complex world of digital assets is becoming increasingly important.
recommendations
For traders and investors who want to benefit from the growing demand for Cardano (ADA) and NFTS:
- Monitor the trade volume
: Keep an eye on the ADA and NFT market volume to measure the mood of investors and potential prices.
- Stay through market trends : Stay up to date via industry news, regulatory developments and technological progress that can affect the cryptocurrency market.
- Display your portfolio : spread your investments on a number of cryptocurrencies to minimize the risk and maximize the returns.