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How to interpret the BTC Volume (24hs)?
75 sats \ 4 comments \ @IgnaciobTato 4 Aug 2022 bitcoin
It comes to my attention that BTC has the double of marketcap than ETH and 7 times more mc than Tethed (USDT).
Nevertheless, Tether has almost the double of Volume 24hs than BTC. If you add USDT + USDC they have more volume in total than BTC and ETH together.
Any thoughts on this? Do you think it is an important paramter? How to increase the BTC volume per day?
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30 sats \ 3 replies \ @zuspotirko 4 Aug 2022
A common misconception which exists in the traditional finance world as well is that volume does not necessarily imply 1. liquidity or 2. money inflows/outflows.
The main thing with stablecoins is that everything gets arbitraged away which leads to many trades and thus much volume.
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0 sats \ 2 replies \ @takaponka 4 Aug 2022
Yes, volume is number of trades that happened. Liquidity is the amount available for trading (buy and sell walls) at any price.
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0 sats \ 1 reply \ @IgnaciobTato OP 4 Aug 2022
So, how is it that USDT and USDC have more trades than BTC and ETH together? How do we increase BTC trades?
In addition, which metric does these sites like coinmarket cap use for liquidity? Just the btc on exchanges acount for trading? All btc is liquid because there are no staking on btc (you may block on LN, RSK or others, but this is tiny yet).
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10 sats \ 0 replies \ @takaponka 4 Aug 2022
Don't mix "liquid" BTC and liquidity. Liquid BTC just mean it can be spent. Bitcoin liquidity is the sum of BTC, of all orders on all exchanges (toatally different things). For USDT and USDC this is like @zuspotirko said I think, lot of arbitrage trades to maintain the PEG.
Increase BTC trades ? Trade more ? More users ? I can't answer
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