CoinMarketCap: New Liquidity Metrics Vs Volume

CoinMarketCap: New Liquidity Metrics Vs Volume

CoinMarketCap has recently announced the launch of its new metric to compare exchanges and token pairs based on liquidity.
Also, it offers investors information on trading volumes, prices, and market caps. It is a crypto market tracking and analysis website. The company provides data on up to 2000 digital currencies. However, the new metric system will reportedly integrate data from 3000 crypto assets. The announcement comes from The Capital, CoinMarketCap’s inaugural conference in Singapore on November 12, 2019. CoinMarketCap, with this project, plans to provide crypto investors with data on liquidity.

Volume has lost its value as a metric

The company plans to base the new liquidity metric on adaptive data. CoinMarketCap’s chief strategy officer, Carylyne Chan, has explained that their latest project aims to make the metric safer and harder to manipulate. This is a new way of escaping dependence on volume reports, which is often a subject of a different kind of scam trading. Also, Carylyne Chan highlighted the fact that the company plans to encourage the provision of liquidity, instead of the inflation of volumes as the amount has lost its value as a metric. CoinMarketCap has enormous plans for its new project. However, the exact details are unknown.

CoinMarketCap: offers new tools for traders

In August 2019, the CoinMarketCap announced that on November 12, it would launch a new liquidity metric.
However, in July, CoinMarketCap, in partnership with Crypto Briefing, has launched its new institutional analysis product Simetri. Besides, the program is designed to ensure order book transparency and provide in-depth fundamental insight into the crypto market.
Moreover, CoinMarketCap has pressed many of its partner crypto exchanges to disclose correct and accurate data. All for the sake of improving the transparency of digital information available on the platform.