Solana & memecoins
What is trading volume in crypto?
Volume is the total value traded over a period. It tells you whether anybody is actually transacting, which matters because a token with no volume cannot be exited at any displayed price. On memecoins it is also the easiest statistic to fake, so volume is only informative alongside the number of distinct buyers and the size of the pool.
What volume is good for
- Exit feasibility. Volume far below your position size means you are the market when you sell.
- Attention change. A sharp rise against the token's own recent baseline is the signal, not the absolute number.
- Relative comparison. Volume against liquidity says whether the pool is being used or just sitting there.
How it is faked
- Wash trading. The same wallets trading with themselves, producing volume and no participants.
- Bot churn. High-frequency round trips that inflate the total while net flow is flat.
- Bursts. A single coordinated minute that makes a 24-hour figure look healthy.
The cheap check: look at unique buyers rather than value traded. Five hundred thousand dollars of volume across 40 wallets is a very different token from the same figure across 4,000.
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