I think the number of traders just has a little influence on market volatility, because it is possible that with a large number of traders there is an opportunity for more transactions to occur. And more transactions will increase demand and this can cause volatility.

However, of course it will not be affected if the number of traders do not carry out transactions. Because cryptocurrency volatility is inversely proportional to capitalization. This means that the higher the capitalization of a coin, the lower its volatility.