Crypto

Coinmarketcap Finally Introduces a Liquidity Metric

There are many different metrics associated with exchanges and trading volume. One often difficult to track aspect is their true liquidity at any given time.

Whereas Live Coin Watch implemented such a feature ages ago, it seems that Coinmarketcap is only now focusing on it as well.

Coinmarketcap Finally Gets With the Program

Its new liquidity metric focuses on weeding out fake trading volume.

A welcome change of pace, considering how a lot of trading platforms clearly report inflated volumes.

With the new liquidity metric, Coinmarketcap aims  to replace its traditional volume reporting.

This introduces a period of getting used to the new statistic by users of this platform.

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However, it is evident that liquidity is, next to the price, the only real interesting tidbit of information crypto exchanges provide today.

It is a welcome change of pace, albeit CMC is well behind some of its competitors in this department.

For the leading coin tracking site, a feature such as this one should have been available from day one.

How it will affect the actual trading on exchanges, remains to be determined.

There is also the question as to whether fake trading volume can effectively be nullified on such sites.

It is often a matter of time until platforms find a way to prop up their numbers. 

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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