Average transaction volume

What is "Average transaction volume"?

Average transaction volume represents the mean transaction value of a cryptocurrency, calculated by dividing the total transaction value by the number of transactions.

Why is "Average transaction volume" important?

This metric reveals whether the network is used for large institutional transfers or smaller retail transactions, complementing transaction count analysis with a value dimension. Rising average transaction values typically indicate growing liquidity and institutional interest, often correlating with price appreciation. Declining values may signal reduced institutional participation or a shift to retail activity, frequently preceding price weakness. Traders use this metric to distinguish genuine economic activity from wash trading — high average values with steady transaction counts suggest healthy usage, while low values might indicate artificial volume or network spam.

How is "Average transaction volume"calculated?

Average transaction volume is calculated as: Total value of transactions / Number of transactions.