The major financial metrics provider website CoinMarketCap has altered its ranking algorithm. No more will the platform rank exchanges and token pairs based on the 24-hour volume. The new metric will be Liquidity- the 24-hour rolling average, which at press time is live on the platform.
Addressing the audience at CoinMarketCap first-ever large scale conference – “The Capital”, Chief Strategy Officer, unveiled the company’s vision to redefine the crypto market. According to Chan, this change will democratize access to accurate data. And with this CMC will stimulate the existence of a more liquid market.
Finally, CMC has bid goodbye to its existing Volume Weighted Average Price ranking. And is now calling for order books from the exchanges. According to the data shared, almost 70% of the listed exchanges have already submitted their order books.
In a recent Market Surveillance report by BTI, almost 73 exchanges on CoinMarketCap were wash trading volumes more than 90 percent. And CMC had been attempting to put an end to all the fake volume game.
Depth that adapts
Chan explained that liquidity components would make it difficult for the exchanges to manipulate the data. According to the new metric, the nearer the order is to the mid-price, it would add more weight to the ranking. Larger order size is another component that adds weight. Thus such an adaptive depth will provide clarity. Thus, will bring in more transparency to the crypto market.
Binance is the liquidity metric winner
Chan even shared the list of Top 50 Exchanges ranked by liquidity. And, to everyone’s surprise, Binance emerged out to be the winner. Thus irrespective of whether Binance fakes its trade volume or not, it remains trader’s number one choice to place orders.
Some of the other innovative and now popular tools introduced by CMC this year were:
CoinMarketCap indices, Block Explorers and Interest.
It also announced the content partnership with FlipSideCrypto, IntoTheBlock, TokenInsight, and CryptoBriefing. This is the educative initiative to bring forward most of the information to its users in one place.