Market Cap – Cryptos with Latest Better Liquidity
Volume of trade has for the longest time since the inception of the cryptos been the main measurement metric of a crypto. The need for volume led to several manipulated trading. The cases of wash trading and other illegalities to boost the trade volume has been so high.
According to a report by Bitwise Asset Management, over 95% of all trading being inflated or manipulated. It meant the industry had to come up with better ways to measure the real value of a cryptocurrency. That is where the liquidity comes in. Liquidity allows the users the ease of trading the coins, while also acts as an indicator of the trade volume.
Liquidity is all about data. Unlike other metrics that only look into a single facilitator, liquidity looks into the bids and spreads, orders, spillage and speed of price recovery. Traders can rely on the liquidity data when assessing the different cryptos to make an informed decision. Prioritizing liquidity also ensures more transparency and lesser risk of investing in crypto ponzi schemes.
Now that you understand why liquidity is such an important measurement metric, here are some of the top cryptos with better liquidity;
- Bitcoin
By now you already know Bitcoin is the powerhouse of the crypto world. With a market cap of $117.81bn the coin is just not backing out as the most preferred blockchain trading tool. Some of the factors that have led to the increased liquidity of Bitcoin is the influx of exchanges. Most people trust the exchanges and are willing to trade in such safe places more than ever.
The liquidity of the coin has also improved with an increase in acceptance rate. Other than the Wall Street accepting the coin, most retails stores are also embracing it. These outlets mostly rely on crypto payment processors to enhance the transaction speeds. The more retails outlets accept Bitcoin the more people embrace it as a medium of exchange.
The Bitcoin world has also had it good with the spread of ATMs for faster access of the assets. It also goes through several enhanced regulations that increase consumer protection. As long as people understand they are safe trading the coin, then nothing stops them from acquiring more.
- Ethereum
Like Bitcoin, Ethereum has also been quite consistent as the second most traded cryptocoin. With a current market cap of $25.56bn, the coin does exceptionally well in the crypto sector. It offers the best option for those who are looking to join the crypto world yet don’t have the massive money to buy Bitcoin, but still retain the quality.
The increasing liquidity has been so rife in recent with the coin recording some of its highest weekly trading in Coinbase in May. Following the sustained growth of the currency as many people look to join the crypto world, the liquidity of ETH will keep advancing.
- Monero
Even though one of the latest entrants in the market, the coin has gained a bigger market share. With a market cap of $1.12bn, the coin has considerably grown in recent times. One of the main reasons for the improved liquidity of Monero is the ease of accessibility.
The coin is looking to liberate the traditional financial systems by making it easy to make payments. One of the current use cases has been on the widespread BLM protests. It provides for a software program that mines the coin to use for bailing out the arrested protestors. The move increased the hashrate of the coin by 20%. The more the use cases, the better the liquidity.
Unlike the other cryptocoins which requires powerful machines to mine, Monero is easy to mine even from a phone. It provides a special smartphone feature on HTC with the mining utility.
- Litecoin
Litecoin is yet another crypto that has kept its worth as a major coin. Even though it tends to lose much during economic downfall, the ability to bounce is like no other. With a market cap 0f $1.2bn, the coin offers favorable liquidity. It also comes with multiple benefits that makes it a top choice coin for most investors.
- USDT
This list would not be complete without a stable coin. One of the top challenges of using a crypto is mostly the risk of volatility. However, the struggle seems to be nothing when it comes to stablecoins. Paired with the fiat currency, it does not fluctuate due to changes in the market.
One of the reasons for the excellent liquidity of USDT is the high acceptance rate. Most traders are using it as a sure investment while the exchanges are using it as a bridge between the fiat and crypto currencies.
Even though mostly known for long term investments, the coin is a hit among several quarters.
Wrapping UP
With thousands of cryptocoins available, and several more coming up from time to time, settling on one coin can be such a daunting task. The competition among the coins has also seen most of the them manipulate trade volumes and other measurement metrics. However, tampering with liquidity is unheard of.
Liquidity relies on data such that no one can easily manipulate the figures. Use this list when considering joining the crypto world. It provides for the coins with best liquidity and other features like security, for the assured returns. Such liquidity also means the ease of trade for both selling and buying.