CoinMarketCap Responds to BitMEX and Deribit Concerns About Ranking, Announces 'Separate' Derivatives Page

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Mon, 06/08/2020 - 15:15
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Vladislav Sopov
A new cryptocurrency exchange ranking by CoinMarketCap, a top analytical platform, has confused many derivatives traders. But the CMC team quickly explained the situation
CoinMarketCap Responds to BitMEX and Deribit Concerns About Ranking, Announces 'Separate' Derivatives Page
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According to an official statement from Coinmarketcap, the most popular crypto statistics provider worldwide, the new ranking is valid for spot exchanges only. A special page with derivatives trading platforms will be launched soon.

Derivatives platforms concerned

Today, on June 8th, 2020, some cryptocurrency derivatives platforms were surprised by their positions in the new Coinmarketcap rankings. For example, world-leading platform BitMEX was ranked #175 while its close competitors ByBit and Deribit were 177th and 179th respectively.

The Deribit team even commented on this ranking with an acerbic tweet that highlighted the misleading nature of new algorithms.

Deribit mocks CMC new ranking
Image via Twitter

In contrast, some exchanges from the Top-20 report only $3M in daily trading volume. The Binance crypto exchange ecosystem that recently acquired Coinmarketcap, is the undisputed champion with brilliant metrics.

This fact made many inhabitants of Crypto Twitter treat the new ranking mechanisms ironically.

Don't criticize CoinMarketCap so fast

Amidst these concerns, CoinMarketCap released a public statement that highlights that the new ranking should be applied to spot cryptocurrency exchanges only. Contracts trading platforms will be ranked on a special web-page soon.

[Update as of Jun 8: Please be reminded that the exchange ranking algorithm change below applies for spot market pairs and exchanges only. A separate page for derivative exchanges will be available in the near future.]

Previously, exchanges were ranked by 24-hour trading volume (by default). So, the exchanges involved in 'wash trading' could report fake volumes to get the highest positions in CoinMarketCap rankings.

In May 2020, the CMC team started rolling out a new ranking mechanism based on integral metrics - Web Traffic Factor, Confidence Indicator, Average Liquidity Indicator and others.

Such metrics collect data from multiple sources and process it in order to produce legitimate results only. So, with the complete implementation of new technics, the CMC rankings will be transparent and unbiased.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250

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Fri, 01/15/2021 - 18:02
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Vladislav Sopov
Ethereum 2.0 enthusiasts deposited whopping sum in its contract launched six weeks ago
2,500,000 Ethers Locked in Ethereum 2.0 Deposit Contract as ETH Rejected From $1,250
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While crypto markets are trying to get out of the most painful correction in this bullish cycle, the Ethereum 2.0 deposit contract accomplishes another crucial milestone.

ETH2 deposit contract surpasses $3,000,000,000 level

According to leading Ethereum network observer Etherscan, the Ethereum 2.0 deposit contract (0x00000000219ab540356cBB839Cbe05303d7705Fa) allocated more than 2.5 million Ethers. New 32-ETH stakes are transferred to it every minute.

ETH2 deposit contract breaks above $3B
Image by Etherscan

As the correction of the Ethereum (ETH) price ended, ETH is changing hands at $1,225: the $1,250 level was too difficult for bulls to conquer. Meanwhile, even at press time, it is worth almost $40,000 to join the club of Ethereum 2.0 stakers.

Therefore, the USD-denominated value of assets locked in the contract surpassed $3 billion for the first time ever and keeps surging.

It should be noted that Ethereum 2.0’s deposit contract went live on Dec. 1, 2020, heralding the start of ETH2 Pase Zero or Beacon Chain, the inaugural stage of Ethereum 2.0.

Ethereum 2.0 “entry tickets” become really expensive

At press time, more than 52,267 addresses transferred money to the deposit contract.

Ironically, Black Thursday in Crypto (March 13, 2020) was the most convenient time to join Ethereum 2.0 staking with Ether at $95. Today, Ethereum (ETH) enthusiasts should pay 13 times more to have a minimum amount of Ethers required for staking.

Ethereum 2.0 is a proof of stake (PoS) iteration of the Ethereum (ETH) protocol. It replaces mining by staking and splits the whole Ethereum (ETH) network into several interconnected sub-chains (shards).

According to Staking Rewards analytical dashboard, annualized rewards for ETH staking are estimated between 10.4 and 10.6 percent.

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About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)