The Transactions Volume indicator measures the aggregate volume of transactions recorded on-chain. This version of the indicator tracks the volume in crypto terms (i.e. USD instead BTC). You can use the indicator in crypto terms here.
Another version of this indicator, Large Transactions Volume in USD, measures only the volume of transactions over $100,000, which is indicative of whale/institutional activity.
💡 How can I use it?
Transactions Volume can indicate both trading and non-speculative activity. Similar to trading volume seen in exchanges, Transactions Volume can be helpful to spot reversals and break-outs:
Transactions volume in USD for Ethereum
Here we can see that transactions volume spiked during the March 12, 2020 crash dubbed Black Thursday. This increase points both to the panic from holders selling, as well as large investors buying amid the uncertainty. As such, the strong transaction volume here acted as a sign of a reversal in the price trend.
In July, 2020 we see a pattern of transaction volume reaching high levels as ETH’s price broke out above $300. This growth in volume can be interpreted as a sign of confidence in the current break-out.