Coinmarketcap now broadcasts crypto liquidity

The crypto market's most visited data site, CoinMarketCap, has announced the launch of its new metric to compare exchanges and token pairs based on the ability to convert assets.

During The Capital conference in Singapore, representatives of CoinMarketCap showed the new tool directly on the company's website. The new metric will reportedly include data from 3 ' 000 crypto assets.

Intending to filter out market manipulation, CoinMarketCap will base the new liquidity metric on adaptive data. Caroline Chan, the company's Director of strategy, detailed the firm's goals with their methodology:

We believe that our adaptive methodology will make our metric very difficult to "play", as orders must be placed close to the average price, otherwise risks backfiring compared to the liquidity metric estimate.

Liquidity is more important than volume

The firm said it sees its new metric as a way to avoid dependence on volume reporting, which is often the subject of active trading and other means of manipulation on different exchanges. Chan said that " volume has lost its value as an indicator." She also explained CoinMarketCap's desire to shift focus away from trading volume:

Today we introduce a new metric to highlight the most important thing for investors and traders: liquidity. With our liquidity metric, we hope to provide public goods in cryptocurrency markets by encouraging the provision of liquidity instead of volumes.
It is worth noting that the Coinmarketcap platform initially announced the planned liquidity indicator at the end of August, indicating November 12 as its target date for the launch of the instrument.

In July, CoinMarketCap launched a new institutional-level Analytics product called Simetri. The product is aimed at ensuring verification and transparency of the order register data on crypto exchanges.

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