Volume Metrics

Volume metrics provide insights into trading activities, identifying areas of high activity and assessing risks related to volume concentration. These metrics help in evaluating market behavior and liquidity.

• Network Volume Share: Shows the percentage of trading volume by network.
• Daily Amihud: Reflects the daily cost-per-dollar trading volume.
• Nakamoto Coefficient: Minimum pools/DEXes needed for 50% trading volume, indicating distribution.
• Gini Coefficient: Measures inequality, with values near 0 showing even distribution, near 1 indicating concentration.
• Shannon Entropy: Assesses distribution predictability, with higher values suggesting better distribution.
• Herfindahl-Hirschman Index (HHI): Evaluates market concentration, with values near 0 indicating wide distribution.
• Theil Index: Shows deviation from perfect distribution.
• Power Ratio: Percentage of volume by most active venue, indicating dominance.

By analyzing trading volumes, stakeholders can better understand market dynamics and potential risks.

Example dashboard utilizing the metrics and Bitpulse Data: