CoinMarketCap Reveals Further Ranking System Changes

CoinMarketCap, a leader in crypto data aggregation, has recently started to introduce new metrics. These metrics will rank exchanges and market pairings, doing so on a number of factors fully intended to combat the fake volumes that have been playing the crypto industry’s data formats for some time now.

Combating Suspect Volumes

The changes will build on others that were recently introduced. In recent times, however, it has been a controversial subject matter, as it has been proven to explicitly benefit Binance, the new parent company of the data aggregator.

In order to flag these suspicious volumes that exchanges report, CoinmarketCap has recently introduced a new “Confidence” metric on the 29th of May. This factor leverages a machine-learning algorithm in order to examine all the data that CMC ingests, determining if the volumes submitted are inflated, and to what extent they could be

However, CoinMarketCap has also introduced a default ranking system for market pairings, which replaces the current metric of volume for default sorting.

Plans For The Future

In the future, CMC will leverage a single algorithm, one that considers the Web Traffic Factor and Liquidity Score, as well as the volumes for each pairing. In due time, CMC has planned to introduce a new factor as default sorting, which will serve as the means of exchange rankings on its platform, as well.

On the 22nd of May, 2020, CMC had removed its “Adjusted Volume” metric. This excludes the volumes generated by pairings without transaction fees, as well as derivatives and pairings with transaction mining.

A post published on the blog of the platform explained that users had initially been confused by the pairing’s nature. Many of whom implied that the metric aimed to combat inflated volumes altogether.

Inevitable Favouritism

On the 14th of May, 2020, CMC had launched its new “Web Traffic Factor” in its criteria. This one was developed to try and analyze the user activity on cryptocurrency exchanges, including the amount of page views, time spent on the site, unique visitors, search engine rankings, and search engine bounce rates.

However, Binance, the new parent-company of CMC, has recently started to receive criticism. This comes as a result of CMC’s web traffic metric lead to Binance claiming the top spot as a result. CMC had previously considered, then rejected, a similar metric in the past, prior to the ownership change to Binance.