Declining trading volume across board on hive engine asset have several significant implications on the hive second layer with signaling Lack of interest by hive users as Decreasing volume may indicate a lack of interest in most of the asset, leading to reduced liquidity. Causing Price stagnation with Lower volume that has resulted in price stagnation, as there are fewer buyers and sellers to drive price movements across various assets even with the application of AML on the DEX with Increased volatility as low volume leads to increased volatility, as small trades can significantly impact prices, thereby also Reducing market efficiency with Lower volume traders also reduces the qtreduce market efficiency, making it more challenging to determine fair prices.
Decreasing volume can increase the risk of price manipulation and market instability. Bearish signal Declining volume can be a bearish signal, indicating a potential downtrend.
Lack of institutional support Reduced volume may suggest a lack of institutional investment, which can negatively impact prices.
Monitoring required Declining volume requires close monitoring, as it can be a precursor to significant price movements or changes in market trends.
Disclaimer : Keep in mind that volume analysis should be combined with other technical and fundamental analysis tools to form a comprehensive view of the market.