When viewing a collection in OpenSea, one of the available statistics is ' volume traded'. What does volume traded mean on OpenSea? Let's find out
What does volume traded mean on OpenSea?
"Volume traded" refers to the amount of currency (such as ETH) exchanged during the lifetime of the NFT Project for that particular collection. Volume traded is a good indicator of how many people know about a project because it shows how much money was spent on the project. Established collections have high commercial value.
In addition to the volume traded, OpenSea also shows the lowest prices for NFT collections or projects. Looking at the volume traded is a good indicator of the popularity of NFT collections.
For a collection to sell in bulk, there must be a demand or willingness to buy. For example, one of NFT's top projects, World of Women, has low commercial value compared to the Bored Ape Yacht Club, which has high exposure due to extensive coverage in mainstream media.
This disparity in volume shows the difference in popularity from what many consider to be the pinnacle of NFT projects (BAYC) to a well-known and highly regarded project (WOW).
Volume traded also allows us to make educated guesses as to how much money a founding team or developer will receive from second-hand sales. Two collections, each with the same trading volume, may earn different amounts of profit (from secondary sales). This value depends on the percentage the collection has set for royalty payments.
To calculate how much your project earned in royalties, simply multiply the royalty percentage (set to mint) by the volume traded.
Conclusion
The above article answers your question "What does volume traded mean on OpenSea ?" and hopefully helps you to understand what volume trading NFT means.
