Leading crypto data site CoinMarketCap has introduced a new metric to get crypto liquidity data after comparing the exchanges and token pairs.
On November 12, 2019, the Capital announced the news in an Inaugural Conference of CoinMarketCap in Singapore. Now, the metric tool is available on the website. This metric includes data from 3000 crypto assets.
The CoinMarketCap’s Chief Strategy Officer, Carylyne Chan, expressed a few thoughts about the metric data. According to Chan, their adaptive data on metric is difficult to game, and it is required to place orders near the mid-price or counter the risk for scoring the liquidity metric.
According to the firm, the new metric is an excellent way of preventing the dependence of volume, which is related to the wash trading and other manipulations on different exchanges. Chan said that there is no value of volume as it is lost to metric.
She continued that they are introducing a new metric for investors and traders to highlight liquidity. They are aiming to provide liquidity to the crypto markets instead of the inflation of volumes.
In August 2019, the CoinMarketCap initiated the liquidity metric, which is now released on November 12, 2019.