The research report by enterprise-level analytics platform Kaiko revealed surprising results. Data shows that XRP is above BNB Coin, SOL, and ADA in terms of liquidity.
XRP ahead of BNB Coin, SOL and ADA in liquidity rankings
cryptokoin.comAs you follow from , BNB Coin made an attack and took back its place from Solana. However, Kaiko’s latest report shows its performance declining by a different metric. In a recent post, Kaiko summarized his report that provides a comprehensive liquidity analysis among the top 40 tokens. The report challenged traditional reliance on market capitalization as a key metric. He also underlined the importance of liquidity in measuring the true value of a token. Bitcoin, Ethereum and XRP emerge as the top three tokens in the third quarter liquidity ranking. The report states that BTC and ETH maintain their dominance in terms of both market cap and liquidity.
Meanwhile, BNB Coin dropped to eighth place in terms of liquidity as of its third quarter report. It should be noted that BNB is ahead of XRP in the market value ranking. Kaiko notes that BNB is mostly liquid on the Binance exchange. On the other hand, the report shows that XRP has a higher liquidity score. XRP in particular ranked directly behind Bitcoin and ETH in terms of liquidity metrics.
Other altcoins featured in the rankings
The report highlights that Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) exhibited performances closely aligned with their market caps. The report also notes that Litecoin (LTC) outperformed expectations, ranking fifth in liquidity.
In contrast, TON fell to 37th place in terms of liquidity, despite being ranked ninth by market capitalization. Thus, TON experienced significant underperformance. Other projects with significant differences between market cap and liquidity include Shiba Inu (SHIB), Uniswap (UNI), CryptoCom’s Cronos (CRO) and LEO token. Additionally, Ethereum Layer-2 Arbitrum (ARB) stood out, surpassing the market cap rankings by 25 places. In particular, it was among the top 10 coins with the most liquidity.
What does liquidity mean for tokens?
Kaiko determined its third quarter rankings by considering several factors. These factors include spreads, 0.1% and 1% market depth, volume, and the number of liquid exchanges supporting each token. Two different market depths appeal to higher frequency traders and longer term holders.
Additionally, the report highlights that having more liquid exchanges for a token adds an extra layer of complexity. This makes activities such as oracle manipulation more challenging. BTC, ETH, and XRP make up a significant margin compared to other tokens like BNB Coin. Thus, it leads this metric significantly.
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