Is It Possible for a Pool with Very High Volume to Still Result in a Net Loss for the LP?

Yes, it is entirely possible for a pool with very high transaction volume to still result in a net loss for the liquidity provider. While high volume generates substantial fee income, if the price divergence between the two pooled assets is extremely large, the resulting impermanent loss can easily exceed the accumulated fees.

For example, a 10x price change in one asset can lead to a 50% impermanent loss, which would require an exceptionally high volume and fee rate to offset. The price movement is the dominant factor.