Today, I will teach you how to check on-chain transaction volume. This metric is not only used when researching public chains and DeFi projects, but it is also crucial when analyzing exchange activity and even the overall market sentiment.
1. What is on-chain transaction volume?
On-chain transaction volume refers to the total amount of funds transferred and traded on a chain within a certain period.
In simpler terms, it shows how much money is flowing on this chain.
You can understand it this way: TVL is like how much money is deposited in a bank, while transaction volume indicates how much of that money is being transferred or spent daily. The more money is used, the busier the chain is.
2. How to view transaction volume?
Generally, it is divided into the transaction volume of the chain and the transaction volume of specific protocols.
To look at the transaction volume of the entire public chain, for example, Ethereum, you can open the Ethereum browser Etherscan and click the icon in the top menu.
Then click on the blockchain data on the left, and you can see the transaction icon.
We can see the daily transaction volume curve for Ethereum. The lowest was on August 9, 2015, when it first launched, with a transaction volume of 1,329, and the highest was 1.96 million transactions in 2024. You can compare Ethereum with other chains and also look at the data from other chains.
To look at the transaction volume of specific protocols, we can check Uniswap by opening DefiLlama or Token Terminal.
Search for Uniswap and enter the project page. We can clearly see its daily transaction volume and trend chart. As the largest decentralized exchange, Uniswap has a daily transaction volume of over $3 billion, with a total transaction volume of $130 billion in the last 30 days, and the cumulative transaction amount has exceeded $30 trillion.
3. Why look at transaction volume?
Because transaction volume reflects the activity level of funds.
If TVL is high but transaction volume is low, it indicates that the money is just sitting there, unused.
A high transaction volume means that funds are constantly circulating, making the ecosystem more vibrant.
4. When to look at transaction volume?
When comparing the popularity of public chains: a larger transaction volume indicates more active users.
When evaluating protocols: for example, DEX, to see if it can maintain its transaction volume.
When judging market conditions: if the overall transaction volume decreases, it indicates that the market is cooling down.
5. What to pay attention to when looking at transaction volume?
Be aware of fake transactions: some projects may inflate their volume to create a false sense of prosperity.
Combine with the number of active addresses: a large transaction volume but few addresses may indicate that large holders are frequently trading.
Look at trends: short-term fluctuations are not a concern; long-term trends are more critical.
In summary
On-chain transaction volume indicates how actively money is flowing on the chain.
To check public chain transaction volume, use a blockchain explorer; to check project transaction volume, you can use DefiLlama or Token Terminal.
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