2 November 2024
CoinMarketCap Comes With Improved Ranking System For Cryptocurrency Exchange
CoinMarketCap is the most visited website by crypto investors and enthusiasts. The website recently underwent new and improved changes for its ranking system. The improved ranking system will change the order for exchanges with the removal of “adjusted volume” in place of a “Confidence” and liquidity indicators for each market pair.
The crypto pairs ranking will rely on three factors two of which are designated at CMC –reported volume, liquidity, and an estimation of an exchange’s user base (via the proprietary Web Traffic Factor). The two measures- Liquidity and Web Traffic Factor are unique measures introduced by CoinMarketCap. Binance, interim CEO, Carylyne Chan said, “Our new ranking and Confidence indicator will use the sophisticated tools we have at hand to simplify the process of deciding on the best market pairs, saving our users time, and managing some of the common risks endemic to errant exchanges.”
The high volume through wash trading on exchanges has plagued the entire crypto industry. Many unethical practices give rise to the leading strategies for gaining more users. As a result, the crypto community and CMC management felt that there is a need to filter the data received from exchanges.
The question was raised on the website’s independence and authenticity as it was accused by Binance. At the same time, website metrics placed the Binance on top position for the top listed cryptocurrencies on CMC. However, Binance is independent, the addition of new and ambiguous market pairs is not likely to add to the credibility of the website. In spite of everything, CoinMarketCap has been leading the tracker space for a long time and the new metrics can become default benchmarks for crypto users.
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