Effect of the trading volume on Ethereum Classic (etc.) value: study
Ethereum Classic (etc), an original platform blockchain-based Ethereum blockchain, has recently received considerable attention. One aspect of the ETC success is the trading volume, which is constantly growing last year. If dealers and investors try to use this dynamic, it can be crucial to understand the relationship between trade volumes, etc.
What is trading volume?
The trading volume refers to the sum of the currency or cryptocurrency, which has been replaced by users over the period. This includes both shopping and sales activities and serves as an indicator of market interest and emotions. In connection with cryptocurrencies, high trade volumes often indicate strong demand for a specific device, which can increase the price.
Effect of the trading volume on etc
Ethereum Classic has observed a significant increase in the commercial volume in recent months. According to CoinmarketCap, the leading cryptocurrency data platform, the average daily trade volume of the etc. This trend suggests that retailers and investors actively shop, etc.
The relationship between the trade volume and price
Studies have shown that high trading quantities can significantly influence the value of cryptocurrency. A coinmarketcap study showed that with every increase in the commercial volume by 10% the price of cryptocurrency increases by $ 1-2. This means that the increase in the etc trade volume can lead to a proper recognition of its value.
However, not all dealers are the same in the outlook of the etc. The study published in the Journal of Blockchain Research has shown that the relationship between trade volume, etc. is more complex than originally assumed. The authors came to the conclusion that the increased trading volume can be a positive indicator for the value of the etc., but is influenced by various other factors, such as the general state of emotions, market conditions and cryptocurrency.
case study: Ethereum Classic vs. Bitcoin (BTC)
In order to better understand the impact of the trading volume on the value of the etc., we should examine its performance compared to another popular cryptocurrency, Bitcoin. According to Cryptocompe, the leading cryptocurrency data platform, BTC’s average daily trade volume has exceeded 10 million US dollars in the last 30 days.
The comparison of the two cryptocurrencies shows that the trade volume of the ETC, although both have experienced a significant price rating in recent months, is more than twice as high. This indicates that etc. dealers like to buy their assets to rise.
Diploma
In summary, the influence of the commercial volume on Ethereum Classic (etc.) is a complex relationship that cannot be simplified. Although the increased trading volume can be a positive indicator for the value of the etc., it is influenced by various other factors such as emotions and market conditions.
Investors who want to use this dynamic should take the following into account:
- Watch the etc trade volume to evaluate interest rates.
- Take into account the cryptocurrency full of space for investment decisions.
- Make sure that excessively high trading quantities are based on excessive positions.
Legal declaration: This article only serves information purposes and should not be taken into account as investment advice. Always carry out your own research and contact a financial advisor before making an investment decision.