Double-digit crypto earnings and transaction volume – what’s the connection?

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While the crypto markets are clearly ruled by fluctuations in Bitcoin and Ethereum, outliers are common and identifying them is often what separates average traders from large.

Compared to the earnings festival in the early months of 2021, June has been a pretty dark time for crypto investors. Digital asset prices were mostly stagnant and massive rallies were rare, leaving traders hard to guess: which asset will do better than most that are falling or moving sideways?

Among the many market and social metrics tracked by the Cointelegraph Markets Pro platform, one has proven particularly useful this month: the average daily trade volume.

Five of the assets that saw the largest increase in daily volume from the previous month were among the biggest gainers, securing double-digit dominance over Bitcoin and the dollar.

And the correlation may not be an outlier, we saw the same trend last month.

Trade volume is one component of the VORTECS Score, Markets Pros’ algorithmic tool that draws on years of historical data to assess the health of each coin, the current outlook for the market.

In addition to the score, raw numbers on unusually high and unusually low volume (compared to the average for the past few months) are available on the Markets Pro dashboard. The Unusual Trading Volume Indicator is a tool traders may find useful in identifying potential profit opportunities.

Unusual Trading Volume 7.1.21 at 10:30 a.m. ET / Cointelegraph Markets Pro

Here are the five coins that saw the biggest increases in average daily trading volume this month … and their monthly price dynamics.

AMP (AMP): + 2.255%

30 Day Price Change: + 61.02% vs. USD, + 59.32% vs. BTC

AMP embarked on a massive price hike that took it from $ 0.059 to $ 0.108 on June 14, and the trade volume closely followed the price.

Halfway through the rally, the coin appeared in the Unusual Trading Volume section of the Markets Pro dashboard, alerting users that the ongoing price pump had been supported by a corresponding increase in liquidity.

The breathtaking increase in trading volume of over two thousand percent was recorded around the same time that the price peaked at almost 11 cents (red circle on the chart).

KEEP THE NETWORK (KEEP): 737.46%

30-day price change: + 13.35% vs. USD, + 11.28% vs. BTC

Keep Network (KEEP) has benefited enormously from a series of high-profile announcements this month: first Coinbase, then Binance. The market absorbed the news before KEEP pairs started trading on these platforms, resulting in price spiking ahead of trading volume. The highest volume of $ 215 million (red circle in chart) came about 18 hours after the price hit $ 0.71 on June 17.

In KEEP’s case, an increase in trading volume was not the harbinger of a price increase, but at least in part the result of it.

THETA FUEL (TFUEL): 661.56%

30-day price change: + 51.27% vs USD, + 48.51% vs BTC

Theta Fuels’ strong performance this month in terms of price and liquidity was fueled by user anticipation for the upcoming launch of Mainnet 3.0.

Trade volume was certainly one of the factors determining the price action, as the two moved hand in hand. In fact, between June 7-9, volume growth outpaced price movement, peaking a few minutes before price hit the local high at $ 0.66 (red circle in chart).

At that time, Markets Pro’s unusual trading volume indicator was flashing for TFUEL for several hours.

PERLIN (PERL): 454.2%

30-day price change: + 24.32% vs. USD, + 21.92% vs. BTC

The superior momentum in Perlins’ trading volume fueled more than just price movement this month. Combined with other metrics, it contributed to a string of strong VORTECS scores leading up to two price spikes on June 17 and 19.

The highest trading volume (red circle in the chart) occurred on June 17, with asset values ​​at $ 0.112, settling for a high of $ 0.119 about two days later.

QUANTITY (QNT): 281.22%

30 Day Price Change: + 92.03% vs. USD, + 88.56% vs. BTC

Quant (QNT) followed a price / volume trading model similar to that of KEEP. Coin prices were given a big boost by the announcement of an upcoming Coinbase listing before the volume spike occurred.

As the chart shows, QNT’s high liquidity watermark came after the price hit the cap on June 16.

Cointelegraph Markets Pro is available exclusively to members on a monthly basis at $ 99 per month, or annually with two free months included. It has a 14-day refund policy, to ensure it meets subscribers’ crypto trading and investment research needs, and members can cancel at any time.

Important disclaimer

Cointelegraph is a publisher of financial information, not an investment advisor. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk, including the risk of permanent and total loss. Past performance does not represent future results. Figures and graphics are correct at time of writing or as otherwise specified. Strategies tested live are not recommendations. Consult your financial advisor before making any financial decisions. Full terms and conditions.

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