compare cryptocurrency easyDuring the last few weeks, there has been a lot of speculation regarding the report published by Bitwise Asset Management, suggesting that more than ninety percent (90%) of the total reported trade volume of digital currency on websites such as CoinMarketCap (CMC), is unreliable.
As a consequence of this report, another asset management site was launched, known by the name OpenMarketCap and many platforms like OnChainFX have undergone modifications so as to better represent the actual state of global cryptocurrency trade.
It has been well established from the beginning that crypto-exchange data is not reliable and the report only reminded everyone that many of the metrics for comparison of the crypto are suspicious, to begin with. Two of these metrics are the market cap and the number of daily transactions.
The aim of the cryptocurrencies competing with each other today is to ultimately become an acceptable form of currency in the utility world. This reflects the need for a certain level of liquidity in cryptocurrency so that it can be evaluated on a more stable basis.
Cryptocurrency should be stable enough to not face severe fluctuations in value when people move in and out of the crypto-space. Liquidity is required to prevent problems like sudden loss of value and slippage while the asset is in hand.
For the particular case of cryptocurrency, a more liquid form of digital assets is required for smart contracts and it is possible that such novel financial frameworks are built on top of the base cryptocurrency networks, bringing huge amounts of liquidity to the crypto space in years to come.
