High-Volume Stocks Outperform as Liquidity-Driven Strategy Yields 166.71% Return Galaxy Digital Ranks 345th in Market Activity

On August 8, 2025, Galaxy Digital (GLXY) closed with a 1.10% decline, trading at $X.XX with a daily volume of $0.29 billion, ranking 345th in market activity. The stock's performance reflects broader market dynamics influencing liquidity-driven strategies.

Recent backtesting reveals a compelling pattern in high-volume stocks. A strategy purchasing the top 500 most liquid stocks daily and holding for one day generated a 166.71% return from 2022 to 2025, significantly outperforming the benchmark's 29.18% gain. This underscores how liquidity concentration amplifies short-term momentum, particularly during volatile periods when trading volumes surge.

Market volatility appears to be a critical factor in such strategies. The sharp price swings observed in high-volume stocks during turbulent market phases highlight the interplay between liquidity and price discovery. This dynamic creates opportunities for traders leveraging volume-based signals, though it also heightens exposure to rapid reversals in choppy conditions.

The backtest results demonstrate that the 166.71% return outperformed the benchmark by 137.53%, validating the strategy's effectiveness in capturing liquidity-driven momentum. This outcome emphasizes the importance of liquidity concentration in short-term stock performance, particularly in volatile markets.