A successful data tracking service for crypto presents a new metric which, according to the organisation, is going to demonstrate real trading movement in a field disreputable for suspect volume figures more accurate.
In the announcement, the company mentioned, that CoinMarketCap’s Liquidity metric started operating on Tuesday and is going to become a default barometer for ranking exchanges and currency sets on the website. This new metric takes into a count a series of various factors like order measurements and distance from the mid-price. Estimates are done by examining the market pair at irregular periods over 24 hours and equating the result, which is calculated in dollars.
CoinMarketCap is one of the preeminent sites for crypto tracking, and it believes this new metric can assist people adequately distinguish the most liquid markets for the more than 3000 crypto assets, that are registered on their website.
As to Carylyne Chan, Chief Strategy Officer of the company, an order that deviates significantly from the mid-price on a marketplace is expected to be settled by the exchange administrator itself to expand volumes and thereby will be given a much minor weighting when creating the Liquidity scoring.
The alteration is evident. When it's time to announce volume, CoinBene platform (which is based in Singapore) was the top-ranking exchange during the 24 hours through 7 pm local time on Nov. 10, with $1.2 billion value of commerce, according to data provided by CoinMarketCap. But when applying the Liquidity metric, Malta-based Binance was the No.1 exchange during the same period, with just half of the reported trades.
Crypto exchanges are usually subject to much less oversight correlated with bourse peers in traditional assets. The US SEC in March, fund manager Bitwise declared that 95% of all Bitcoin trading volume tracked by CoinMarketCap is false.