Trading Volume
The total value of assets traded on a protocol over a given time period.
In-Depth Explanation
Volume drives fee revenue for DEXs and perps platforms. However, volume can be misleading: wash trading inflates numbers, and volume doesn't indicate profitability. Volume/TVL ratio measures capital efficiency—higher ratios mean each dollar of liquidity supports more trading. Organic volume (without incentives) is the metric that matters.
Related Terms
More in Metrics
View all →Total Value Locked
TVLThe total value of crypto assets deposited in a DeFi protocol or across all of DeFi.
Protocol Revenue
Fees collected by a protocol that accrue to the protocol itself or its tokenholders, rather than to liquidity providers or other participants.
Take Rate
The percentage of transaction volume or fees that a protocol captures as revenue.
Fees
Total fees generated by activity on a protocol, regardless of who receives them.