Here are Cryptocurrencies by Liquidity Score

A new report published by on-chain analytics firm Kaiko evaluated the second-quarter liquidity performance of cryptocurrencies. Which are the best and worst performing cryptocurrencies? There are surprising results…

Here are cryptocurrencies by second quarter liquidity performance

Kaiko recently reported the second-quarter liquidity ranking of cryptocurrencies. The data shows that there have been big changes in the crypto market in the past months. The key takeaways of the report are as follows:

• According to Kaiko, Bitcoin (BTC) stands out as the most liquid cryptocurrency. BTC is the leader of the crypto market and stands out with its high trading volume and liquidity.
• Ethereum (ETH) remained another important crypto with high liquidity in the second quarter as well. ETH draws attention with its increasing transaction volume with the growth of DeFi ecosystem and NFT sectors.
• Other cryptocurrencies include coins with significant liquidity such as Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH), and Chainlink (LINK).
• The report also highlights that the liquidity ranking is not only related to trading volume, but also to factors such as liquidity providers and market depth. These factors are considered important factors that affect liquidity during trading of a coin.

Top cryptocurrencies by volume

Kaiko evaluates the prominent altcoins this quarter in terms of volumes as follows:

• XRP ranks third in volumes, up two places from last quarter, accompanied by the latest developments from the SEC-Ripple lawsuit. The altcoin has also seen volume growth on Korean exchanges.
• Arbitrum (ARB) ranks 6th ahead of several Layer 1s this quarter.
• Bitcoin Cash (BCH) stands out for its lack of volume, ranking 21st especially in light of EDX’s list, an exchange backed by Fidelity, Charles Schwab, and Citadel Securities. BCH looks odd in terms of volume.

FIL, BNB and ATOM decline in market depth

At this point, Kaiko explains the poor performance of all 3 altcoins as follows:

• FIL depth drastically declined this quarter after being named a security in the SEC lawsuit. Last quarter, it ranked 8th in terms of market depth. It finished in a dismal 21st place in the quarter.
• ATOM suffered a similar decline after being named a security by the SEC. It fell from 13th place last quarter to 18th this quarter.
• Market makers remain reluctant to offer depth for BNB despite being the most liquid exchange’s native token. BNB ranks 9th despite being the third token by market cap.

Cryptocurrencies that have traveled the most since the first quarter

Progress cryptocurrencies:

• The AVAX liquidity ranking rose 7 places this quarter, up from 19th last quarter. AVAX appears to have avoided being listed as a security in SEC lawsuits.
• SOL also moved up 7 places from 13th place last quarter to 6th place this quarter. It made an impressive splash for a token that the SEC claims is a security.
• XMR has moved up 7 places from 24th to 17th, thanks to the massive improvement in depth rankings since last quarter.

The report also featured a few altcoins that experienced extreme growth or remained under the expected low:

• Aptos (APT), again, has liquidity well above market value. This time, however, it has been surpassed by ARB, which has just entered the ranking in terms of liquidity for its size. We can conclude that ARB and APT are two of the most liquid tokens for their size and should benefit from less volatility as a result.
• LEO, TON, TRX and OXB performed poorly. There was no improvement in liquidity. These are some of the most misleading coins for investors who might assume their market cap is related to their liquidity. Exchange tokens consistently yield the most misleading results.

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