CoinMarketCap adds new metrics to fight fake trading volumes
|- CoinMarketCap introduces a new metric to provide insights into cryptocurrency market data.
- Binance is ranked as the top exchange in accordance with the new metrics.
CoinMarketCap, one of the world's leading data providers on the cryptocurrency market, introduced Liquidity, new metrics for trading volumes. The new tool will allow to reflect real trading activity data and combat fake volume figures.
The liquidity metric will be used to define the rankings of currency pairs and exchanges, according to the official statement of CoinMarketCap. It is based on a wide set of indicators including order sizes and distance from the mid-price.
The calculations are based on obtaining market data at random intervals, which is further averaged and measured in US dollars.
“When people are inflating their volumes, they are basically inserting orders into the order book, so they buy and sell to themselves. What we are trying to do here is to counter that,” CoinMarketCap Chief Strategy Officer Carylyne Chan explained as cited by Bloomberg.
Currently, Malta-based cryptocurrency exchange Binance takes the first place in the rating with an average daily liquidity of $60 million and an average daily trading boule of $857 million. The second place goes to HitBTC ($59 million and $445 million respectively). Huobi Global is the third ($31 million and and $530 million).
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