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Volume Distribution Metrics

Volume metrics measure how trading activity is distributed across pools, DEXes, and networks. Concentrated volume indicates fragile market structure — a single venue's failure or withdrawal can disproportionately impact price discovery and liquidity access.

Metrics Reference​

Nakamoto Coefficient (Volume)​

The minimum number of pools, DEXes, or networks needed to account for 50% of total trading volume. Applied to volume rather than liquidity — measures how distributed trading activity is across venues.

  • Interpretation: A Nakamoto Coefficient of 1 means a single venue handles the majority of volume. A venue shutdown would eliminate most price discovery.

Gini Coefficient (Volume)​

Measures inequality in trading volume distribution across venues. Values near 0 indicate trading is evenly spread; values near 1 indicate volume is dominated by a single pool or DEX.

Shannon Entropy (Volume)​

Measures the diversity of trading venue usage. Higher entropy = well-distributed volume across many venues. Lower entropy = volume concentrated in specific pools, with higher structural fragility.

HHI (Volume)​

Sums the squared percentages of trading volume by venue. High HHI signals a near-monopoly in trading activity. Interpretation ranges same as the Liquidity HHI.

Theil Index (Volume)​

Measures deviation from perfectly distributed trading volume. Decomposes into within-venue and between-venue inequality components.

Power Ratio (Volume)​

The percentage of total trading volume handled by the single most active venue. A Power Ratio of 0.80 means one pool or DEX handles 80% of all trades — significant counterparty concentration for anyone routing through it.

Network Volume Share​

Percentage of total trading volume broken down by network (e.g., Ethereum, Base, Arbitrum). Used for cross-chain risk assessment and network dependency analysis.

Total Entities​

The count of distinct entities (pools, DEXes, networks, addresses) contributing to volume within the measurement window. Provides context for interpreting concentration metrics — a Nakamoto Coefficient of 3 in a pool with 5 total participants reads very differently than one with 500.