CoinMarketCap just release a blog post announcing that they have listed a new metric on their website. They call this metric "Liquidity".The Liquidity metric by CoinMarketCap is designed to eventually replace volume as the default metric when ranking market pairs and exchanges.Liquidity refers to the ease of being able to trade in and out of an asset, or in this case cryptocurrencies.The Liquidity metric by CoinMarketCap takes into account a wider range of key variables from the order book, such as the distance of the order from the mid-price, the size of the order and the relative liquidity of the asset in question.We refrain from using a static percentage depth to calculate Liquidity, [...]The adaptive methodology will make the Liquidity metric very difficult to “game”You can see the Liquidity metric on CoinMarketCap's site now, when you view the exchanges for an asset.https://preview.redd.it/n9bhcz1mafc41.png?width=954&format=png&auto=webp&s=2147a52892efc1a1233aee06fbcab583f40cbc04Everyone knows that exchanges fake their volume numbers so they can appear at the top of this list. The new Liquidity metric is supposed to solve this problem. When filtering by the Liquidity, you should see a list of the actual most popular exchanges.https://ift.tt/2TQRrLs, it seems this metric is still somewhat flawed. Even when filtering by "Liquidity", the list of exchanges is now what you would expect. Some of the most popular exchanges such as Binance are not even listed. Surely Binance has more liquidity than many of the exchanges listed here, and fake exchanges such as ZB.COM is listed as the 4th most liquid exchange. Has anybody every even used this exchange before?What do you guys think of this new metric?
Submitted January 23, 2020 at 07:27AM
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