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

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Mon, 06/08/2020 - 15:15
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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Contents

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.

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.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

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Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

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.)