Daily volume refers to the total value – in monetary terms – a given cryptocurrency has traded in a single day.
For investors, daily volume is a relevant measure when compared to total volume. If the volume of crypto traded in a single day is high relative to the circulating supply, there is elevated interest in the crypto – for better or worse – suggesting that price movement may be more likely.
In addition, an investor can use the daily trading volume over time as a signal of the growing or decreasing interest in a cryptocurrency. After all, the price of a cryptocurrency is determined by supply and demand.