On November 12, the popular analytical service CoinMarketCap launched a new metric for ranking cryptocurrency exchanges and currency pairs based on liquidity. The news was announced by CSO Carylyne Chan during a conference in Singapore.
— CoinMarketCap (@CoinMarketCap) 12 ноября 2019 г.
The new indicator includes data from 3,000 cryptocurrency assets and is based on a wide range of factors, such as the size of orders and the ratio to the average price of an asset.
The price is fixed for each market pair at random intervals during the day, after which the average result is calculated in dollar terms.
According to Chan, a metric based on adaptive data will reflect the real trading activity of an industry known for its market manipulations.
“We believe that adaptive methodology will make our metric difficult for “volume games.” An order that is significantly different from the average price on the market is likely to be placed by the exchange operator itself to increase volumes, and therefore it will have much less weight when creating a liquidity assessment”. Carylyne Chan noted.
She also added that trading volume has lost its value as a metric.
“We are introducing a new metric to emphasize that liquidity is most important for investors and traders. With its help, we hope to benefit the cryptocurrency markets by encouraging the provision of data on the liquidity of trading pairs instead of inflating trading volumes”.
Recall that a new cryptocurrency exchange liquidity assessment system was announced in August.