What Is a “Volatility Index” and How Does It Relate to Market Congestion?

A volatility index (like the VIX in traditional finance) is a measure of the market's expectation of future volatility, often derived from options prices. While not directly related to network congestion, market congestion (panic selling/buying) often coincides with high market volatility.

High volatility drives up option premiums, which the index tracks. Network congestion may exacerbate this by delaying trades and increasing uncertainty.