New CoinMarketCap Update Provides Investors With Liquidity Data

Investors can now rest assured of seeing information about liquidity on one of the leading cryptocurrency data providers – CoinMarketCap. The company is in the latest cryptocurrency news for unveiling a completely new feature reserved for this. Following the announcement, the new CoinMarketCap update was described as an ideal one for comparing exchanges and token pairs based on their liquidity.

Speaking of, the official announcement comes from The Capital, which is the inaugural conference that was held in Singapore on November 12. The tool is officialized and now live on the company website.

As described, the new CoinMarketCap update will reportedly incorporate data from 3,000 crypto assets. While thinking of filtering out the market manipulation, the leading crypto data provider will reportedly base the new liquidity metric on adaptive data.

“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,” said Carylyne Chan, the chief strategy officer (CSO) at CoinMarketCap.

The firm also said that they see the new metric as a nice way to escape the dependence on volume reporting which is often used to wash trading and other means of manipulation on different exchanges. At The Capital, Chan noted that “volume has lost its value as a metric.” She also explained that the new CoinMarketCap update is meant to shift the focus away from the 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.”

The leading cryptocurrency data provider has not been available for comments or more information on the news. However, as shown before, they apparently teased their planned liquidity metric at the end of August, in which they cited November 12 as the target date.

Before the new CoinMarketCap update, in July this year, we could see the data provider launching a new institutional grade analysis product called Simetri. The main idea of the product was to provide verification and transparency in order-book data from crypto exchanges, the news outlet Crypto Briefing said at the time.