Average Daily Trading Volume (ADTV)

Average Daily Trading Volume (ADTV) in crypto refers to the average amount of cryptocurrency assets that are traded on a daily basis over a specific period, typically calculated over a 30-day period. It is a key metric used by traders, analysts, and investors to gauge the liquidity and activity level of a particular cryptocurrency or cryptocurrency exchange.

ADTV is calculated by summing up the total trading volume of a cryptocurrency over a specified period, usually 30 days, and dividing it by the number of days in that period. This provides an average figure that represents the daily trading activity of the cryptocurrency.

Examples:

• Suppose a cryptocurrency has a total trading volume of 300,000 USD over the past 30 days. The average daily trading volume (ADTV) would be calculated as follows:

ADTV = Total Trading Volume / Number of Days

ADTV = 300,000 USD / 30 days

ADTV = 10,000 USD per day

• For another cryptocurrency, if the total trading volume over the past 30 days is 500 BTC, the average daily trading volume would be:

ADTV = 500 BTC / 30 days

ADTV = 16.67 BTC per day

Cases:

- High ADTV indicates high liquidity and active trading in a cryptocurrency, which can be favorable for traders looking to buy or sell large amounts without significantly impacting the price.

- Low ADTV may indicate lower liquidity and less trading activity, which could lead to wider spreads between bid and ask prices and increased price volatility.

- Cryptocurrency exchanges often use ADTV as a metric to assess the popularity and trading activity of listed assets, helping them make decisions about listing new cryptocurrencies or delisting existing ones based on trading volume trends.

In summary, Average Daily Trading Volume (ADTV) provides valuable insights into the liquidity and trading activity of cryptocurrencies, helping market participants make informed decisions.