Discover what 'volume' means in stocks, why it matters for crypto and equity markets, and how understanding trading volume can help you make smarter decisions on platforms like Bitget.

2025-07-04 03:40:00

By Nexus Link

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What is volume in stocks? In the context of financial markets, 'volume' refers to the total number of shares or contracts traded for a specific asset within a given period. For both traditional stocks and crypto assets, volume is a key indicator of market activity and liquidity. Understanding trading volume can help you spot trends, gauge market sentiment, and make more informed trading decisions—especially on leading platforms like Bitget.

Understanding Volume: The Backbone of Market Activity

Trading volume is fundamental to how markets operate. In stocks, volume measures how many shares change hands during a session. In crypto, it reflects the number of tokens or contracts traded. High volume typically signals strong interest and liquidity, while low volume may indicate a lack of participation or uncertainty.

For example, as of October 29, 2025, Bitcoin (BTC) recorded a 24-hour trading volume of $63.01 billion, representing a 13.97% shift and highlighting the asset's high liquidity and active market participation (Source: CoinMarketCap). Similarly, Bitget reported a spot trading volume of $23.1 billion, placing it among the top global exchanges for liquidity and institutional adoption (Source: Bitget x Nansen Report, 2025).

Why Volume Matters: Insights for Traders and Investors

Volume is more than just a number—it provides actionable insights for traders and investors:

Liquidity: High volume means assets can be bought or sold quickly without causing significant price changes. Bitget's deep order books and tight spreads are a direct result of robust trading volume.
Market Sentiment: Sudden spikes in volume often accompany major news, earnings, or macroeconomic events. For instance, rumors of a Federal Reserve rate cut can trigger increased trading activity in both crypto and equity markets, even before official confirmation (Source: ChainCatcher via Jin10, October 2025).
Price Confirmation: Technical analysts use volume to confirm trends. A price movement backed by high volume is considered more reliable than one with low volume.
Volatility: High volume can lead to greater price swings, offering opportunities for active traders but also increasing risk.

On Bitget, rising institutional participation has pushed spot trading volume from 39.4% in January to 72.6% in July 2025, demonstrating how volume growth can signal increased confidence and market maturity.

Recent Developments: Volume Trends in Crypto and Tokenized Stocks

The landscape of trading volume is rapidly evolving, especially with the integration of blockchain technology and tokenized assets:

Tokenized Equities: Platforms like Ondo Global Markets now offer 24/7 access to over 100 tokenized US stocks and ETFs, with on-chain trading volume surpassing $669 million since launch (Source: Ondo Finance, October 2025). This innovation brings traditional stock volume metrics into the crypto ecosystem.
Perpetuals and Derivatives: The debut of Hyperliquids equity perpetuals generated nearly $100 million in trading volume within 24 hours, reflecting strong demand for leveraged, on-chain equity products.
Institutional Adoption: Bitget's institutional spot trading volume has grown significantly, with market makers now accounting for over 56.6% of futures volume. This shift supports deeper liquidity and more stable execution for all users.

These trends highlight how volume is not just a static metric but a reflection of broader market innovation and adoption.

Common Misconceptions and Practical Tips

Many new traders misunderstand what volume in stocks truly represents. Here are some clarifications and tips:

Volume ≠ Price Direction: High volume does not always mean prices will rise or fall. It simply shows increased trading activity.
Beware of Low-Volume Assets: Low volume can lead to slippage and difficulty executing trades at desired prices. Bitget’s consistently high liquidity helps mitigate these risks.
Volume Spikes: Sudden increases in volume often precede or coincide with major news or volatility. Always verify the source of such moves before acting.
Use Volume with Other Indicators: Combine volume analysis with price trends, order book data, and market news for a more complete trading strategy.

For secure and efficient trading, consider using Bitget Wallet for decentralized asset management and Bitget Exchange for deep liquidity and institutional-grade execution.

Bitget: Setting the Standard for Trading Volume and Liquidity

Bitget’s evolution into a Universal Exchange (UEX) is redefining what traders can expect from a modern platform. With a reported Amihud illiquidity ratio of 0.0014 and a Roll spread estimate of 9.02 basis points, Bitget delivers order book depth and execution quality on par with the world’s largest venues (Source: Bitget x Nansen, October 2025).

Whether you’re trading crypto, tokenized stocks, or derivatives, understanding what is volume in stocks—and how it impacts your trades—can give you a decisive edge. Bitget’s transparent metrics, institutional tools, and robust ecosystem make it a top choice for both new and experienced traders.

Further Exploration: Mastering Volume for Smarter Trading

Ready to deepen your understanding of trading volume and market dynamics? Explore Bitget’s educational resources, real-time analytics, and AI-powered trading tools to make every trade count. For secure asset management, try Bitget Wallet and experience seamless multi-chain trading.

Stay informed with the latest market data and trends—because in fast-moving markets, knowledge is your best asset.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.