Since Coinmarketcap added Liquidity to its indicators, you can see a lot of tokens with enormous daily volumes have no liquidity at all. Is it even worth to invest in this kind of tokens? Does that mean that most of the volumes are fake? Thanks for the answers.
Yes, transaction volume affects liquidity, in addition to that trading frequency and transaction value also affect. So it can be ascertained if the trading volume is high while the liquidity is low then it could be that the volume is fake. Current prices can also be manipulated, it seems like bots play a role here. This is very uncomfortable if used for trading, maybe only for hit and run.