CoinMarketCap announced the launch of its new metric to compare exchanges and token pairs based on liquidity.
The New Metrics Now Live On Dashboard
The announcement comes from The Capital, CoinMarketCap’s inaugural conference held in Singapore on Nov. 12.
Users can now access the tool, live on the company’s site. It is reported that the new metric will reportedly incorporate data from 3000 crypto assets.
It is intended to root out market manipulation, Carylyne Chan, chief strategy officer at CoinMarketCap commented:
“We believe our adaptive methodology will make our metric very difficult to ‘game’ as orders would need to be placed close to the mid-price, or risk being counter-productive to the Liquidity metric scoring.”
Liquidity is Greater Than Volume
Dependence on market volume reporting can be subjected to various means of market manipulation on different exchanges.
Chan says that “volume has lost its value as a metric.” She further explained CoinMarketCap’s desire to shift focus away from volume:
“Today, we are introducing a new metric to highlight what matters most to investors and traders: liquidity. With our Liquidity metric, we hope to provide public good to the crypto markets by encouraging the provision of liquidity instead of the inflation of volumes.”
Source: Cointelegraph | Image: CoinMarketCap