CoinMarketCap now offers a ranking of crypto-purses based on web traffic. Binance, which bought the site a few weeks ago, is currently ranked first.
Yesterday, CoinMarketCap said the addition of this new ranking criteria will make it easier to "navigate the cryptocurrency industry".
Exchanges were previously classified according to their declared volumes. However, volume inflation is a problem plaguing the cryptocurrency space. We went back to the drawing board and looked at the important data we could collect for a more accurate representation of the rankings, ”wrote CoinMarketCap.
According to the cryptographic data aggregator, in the absence of wash-trading, volumes remain a good indicator of the health of a stock market, but it is difficult to have high volumes without a large number of retail traders and liquid markets.
We have already covered the second engine in depth with our proprietary liquidity score. We will now address the first driver – number of traders. While it is counterproductive to ask exchanges for the number of traders on their site – those who actively inflated volumes would simply inflate their number of users – we have found that a good substitute for the number of users would be the web traffic. Thus, we designed a score presenting the web traffic of the exchanges, making it easier for our users to compare the exchanges, ”explains CoinMarketCap.
The site thus ranks the stock exchanges by taking into account several factors related to web traffic such as number of page views and of visitors, the rebound rate or the time spent on site (watch time) and relies on data from sites such as Alexa, Aherfs and SimilarWeb to give a final grade.
In April, Binance Acquired CoinMarketCap and minimized concerns about the potential risk of conflict of interest generated by a stock exchange with a popular site ranking this type of platform.