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CoinMarketCap, the world’s most used information resource for cryptoassets and crypto exchanges, is launching a new ranking metric to help its users identify the most liquid market for more than 3000 cryptoassets. This launch is being made at CoinMarketCap’s inaugural conference, The Capital, held in Singapore from November 12-13, 2019, alongside the announcement of several new products and initiatives.

The Liquidity metric by CoinMarketCap is designed to eventually replace volume as the default metric when ranking market pairs and exchanges.

“The cryptocurrency market is more decentralized and is not subject to the same regulatory requirements as the traditional markets. As a result, we have seen exchanges inflating their volumes in the last two years,” says Carylyne Chan, Chief Strategy Officer at CoinMarketCap. “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.”

How it works

  • The Liquidity metric by CoinMarketCap takes into account a wider range of key variables from the order book, such as the distance of the order from the mid-price, the size of the order and the relative liquidity of the market pair in question.

  • The metric has been designed to measure liquidity in an adaptive manner, depending on the absolute order-book depth of the market pair and the distance orders rests from mid-price.

  • The calculation is made by polling the market-pair at random intervals over a 24-hour period and averaging the result. This takes into consideration differences in global time zones and the fact that order-book depth changes constantly due to immediate market conditions.

“We refrain from using a static percentage depth to calculate Liquidity, as the absolute liquidity among different cryptocurrencies is inherently different,” added Chan. “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.”

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The Liquidity metric will be rolled out in three phases on CoinMarketCap’s website; first it will be applied to influence the ranking of market pairs, followed by exchanges, and finally cryptoassets.

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The rankings of market pairs and top 50 exchanges by Liquidity are now live on CoinMarketCap.

Other new products and initiatives announced at The Capital conference include:

  • Jobs board where companies can list job openings and talents can search for new opportunities.

  • Interest, a tool for comparing interest-generating platforms for over 40 cryptoassets including Bitocin, Ethereum, XRP, Tether, Litecoin and more.

  • Partnership with Yahoo Finance whereby CoinMarketCap provides its trusted pricing and indices to power the cryptocurrency markets on Yahoo Finance, coming up on Nov 21, 2019.

  • More languages will be offered within the CoinMarketCap mobile app starting with simplified Chinese, which is now available for iOS and Android. Upcoming languages include Spanish, Japanese, Korean and Russian.

  • Educational site coming up in early 2020 that will comprise of guides and tutorials curated with thought-leaders from the cryptocurrency space.

For more information on CoinMarketCap’s Liquidity metric and how it works, please refer to the  Methodology page.

Summary

CoinMarketCap Launches New Liquidity Metric To Combat “Volume Inflation” Problem

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CoinMarketCap Launches New Liquidity Metric To Combat “Volume Inflation” Problem

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CoinMarketCap, the world’s most used information resource for cryptoassets and crypto exchanges, is launching a new ranking metric to help its users identify the most liquid market for more than 3000 cryptoassets.

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Coingape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Abhinav Agarwal , 2019-11-12 12:07:50 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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