Bitrabo Editorial
The on-chain data analysis firm Santiment reports that the trading volumes of major cryptocurrencies, including Bitcoin and Ethereum, have experienced a surge towards one-month highs. Trading volume refers to the total amount of a cryptocurrency being transacted daily on the blockchain.
When the trading volume is high, it means a large number of tokens of the asset in question are being moved around on the network at present, indicating high levels of market activity. Conversely, low values suggest that there is not much interest in the coin among investors at present.
Recent data shows that the trading volume of major cryptocurrencies has experienced a significant uptick in the past few days. This uptick began when the US SEC sued Binance and its CEO over alleged fraud, causing the prices of major cryptocurrencies to plummet, followed by a surge in trading volume.
Highly volatile events such as this one typically result in increased trading volumes as they attract a lot of attention from investors. However, high-volume environments can result in high price volatility because of the large number of traders simultaneously present, leading to sharp price movements.
As Bitcoin and Ethereum trading volumes remain at a one-month high, indicating sustained investor interest, the market could experience more volatility in the future.
Bitcoin Price
At the time of writing, Bitcoin is trading around $26,400, down 2% in the last week.