So being # 1 by volume is great thing for a currency. It means the currency is well circulated within the crypto ecosystem.
Not exactly. Trading volume may be a good indicator , yes. But it's completely different from transaction volume, which is the true indicator of circulation within the cryptocurrency ecosystem.
Trading volume doesn't occur in the Blockchain. It's an off chain data , which occur inside exchanges.
Transactions are done in the Blockchain and they indicate the usage and adoption