Here’s what happened when we took a look at the top 10 tokens by their relative change in trading volume in the last week.
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TrustFi Network also witnessed a staggering jump in trading volume last week, after jumping 102,000% to reach $1.7 million in weekly trading volume. Whereas Digital Reserve Currency, SafeAffinity and GameFi Protocol clocked in 14,000%, 14000%, and 12,000% growth respectively, pushing their weekly trading volume into the low millions.
All of these saw a near-complete reversal following a sudden spike, and experienced loss in value at the same time.
The weirdness continues.
SmartMesh, a platform that is designed to help power a parallel internet through the Internet-of-Things (IoT), saw a sudden burst in trading volume, along with a concomitant increase in price. This proved to be short-lived, with its trading volume and price collapsing shortly after.
No stranger to erratic market movements and volume spikes, Xenon Play features on the list after seeing its weekly trading volume pump 9,000% to reach $18.2 million before collapsing just as quickly.
Observer saw a similar fate, with its trading volume spiking from just a few hundred thousand dollars per week up to more than $50 million, before quickly balling back. Nonetheless, the MNY token still retained some of the updraft — having more than doubled in value over the tracked period.
Last but not least, Centrality has experienced some rather unusual market movements lately — seeing two back to back sudden spikes in trading volume, each of which sent its price soaring to the same price ceiling before tumbling. The first of these crashes flashed its value by more than 50% from peak to trough, while the second is still underway and looks to be taking the same path.
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Oftentimes, increasing trading volume is seen as a bullish indicator since it can represent growing interest in an asset and new investors moving in. However, as has been seen with our previous examples, when there is nothing of substance behind this spike, the volume and any price growth that comes with it can be short-lived.
That said, those that entered the market pre-spike do tend to be in a better position post-spike, while those that bought the top are essentially crucified.