Volume Traded NFT Meaning
Volume Traded in NFT means the total amount of a currency (such as USD, Eth or Sol) exchanged for a specific collection. It is the aggregate of cash or cryptocurrency used in the transactions between buyers and sellers of an NFT collection. Also known as trading volume, the volume traded is the total quantity of ETH exchanged over an NFT collection.
Volume Traded Sentence Example
- “They checked the total volume traded before concluding the analysis.”
- “BAYC’s trading volume fell to $177 million on December 20, 2021, before rebounding to $259 million on December 26.”
NFT Volume Traded Variations
- Trading volume
Volume Traded NFT Meaning – Context
Volume traded within the NFT society refers to the totality of a currency exchanged on particular NFT collections. In NFT, trading volume is expressed in USD, which is the simplest unit for describing the worth of a collection. Therefore, the volume traded denotes how much USD has been traded to purchase or sell an NFT collection.
Volume traded is an important term in the NFT space, and it’s often considered a good measure of a collection’s profitability. It includes all sales of an NFT traded, that is, initial and secondary sales.
Volume traded is an essential statistic to NFT traders. It is as good as any other indicator of an NFT collection’s popularity among investors and reflects the level of awareness a collection has amongst investors. A collection with high volume traded is highly demanded, most likely of high value or potential.
Furthermore, the volume traded provides significant data that allows you to make informed decisions regarding NFT collections. It is also very useful in making comparisons between NFT collections.
The higher the volume traded of a collection, the better its chances of being preferred to other collections. Successful collections tend to have higher volume traded values and are desired by most traders. In addition, the trading volume gives us an idea of the amount developers generate from secondary sales.
However, the volume traded on its own may not be sufficient when trying to know how much profit a collection has generated. The value of profit made is affected by the percentage a collection sets aside for royalties. A simple way of attaining the revenue generated is to multiply the royalty percentage by the volume traded.