Definition
Volume describes activity already executed, not orders waiting in the book. It may be reported in base-asset units, quote-currency value, or contract units. The market, period, and unit must be identified before figures can be compared.
How It Works
If hypothetical trades exchange 2 tokens at 10 USDT and 3 at 12 USDT, base volume is 5 tokens and quote turnover is 56 USDT. One matched transaction is not normally counted twice simply because it has both a buyer and seller. Repeated resale of the same tokens can increase volume without increasing the token supply.
Key Considerations
High volume does not show whether prices will rise, how many unique users traded, or whether deep liquidity remains available. Wash trading and inconsistent reporting can distort totals. Use volume alongside price behavior and current depth, and avoid comparing spot quantities directly with derivative notional amounts.