How does breadth and depth affect the trading volume of cryptocurrencies?

1 answers

• daumAug 23, 2020 · 5 years ago
  At BYDFi, we have observed that breadth and depth have a significant impact on the trading volume of cryptocurrencies. When there is a wide range of cryptocurrencies available for trading (breadth) and a deep order book with sufficient liquidity (depth), we often see higher trading volume. This is because traders have more options to choose from and can execute their trades more easily. On the other hand, when the breadth or depth is limited, trading volume tends to be lower as there are fewer opportunities for traders to participate in the market. Therefore, it is important for traders and exchanges to consider both breadth and depth when analyzing and predicting trading volume in the crypto space.
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