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CoinMarketCap introduces another algorithm update … and Binance stays first

June 5, 2020

The big crypto data aggregator CoinMarketCap (CMC) has introduced another algorithm update after its acquisition agreement with BinanceAccording to a CMC blog post published yesterday.

The data provider, acquired by Binance in early April for an unspecified amount, started adapting its classification system shortly after the deal was closed. As a result, Binance has reached the top of its stock exchange ranking and received criticism from the community and other trading platforms.

The latest update brings more metrics to exchange rankings

In its latest update, CMC implemented a new algorithm “that replaces the previous exchange ranking with the Web Traffic Factor”, which was introduced on May 14th. According to the data aggregator, the web traffic factor analyzes the activity of users on the exchange platforms, including the number of visits to the pages, the unique visitors, the time spent on the website and the bounce rate of the search engines and search engine rankings.

CoinMarketCap introduces another algorithm update … and Binance stays firstCoinMarketCap introduces another algorithm update … and Binance stays first

The new algorithm has evolved from tracking web traffic to a more complex method that includes market rankings and the so-called “confidence score”.. Both metrics were previously introduced on May 29 for the market pair ranking and have now been applied to the platform’s stock exchange ranking.

Specially, The market pair ranking takes into account the liquidity score, the web traffic factor and the volume of each pair. It is then assessed against the confidence indicator, which “reflects the confidence that CoinMarketCap has in the accuracy of the market pair reported by the exchange”.

The latest update supposedly completes the “first phase of changes to the stock exchange ranking” at CMC. “Our users can assume that this new ranking will be fundamental for the coming months,” says the blog post.

Binance is still number 1

Binance is still in first place with 1,000 Web Traffic Factor after the last change. According to the data aggregator website, the large exchange “always receives 1,000 points and the rest of the exchanges receive a rating based on a relative comparison with this exchange.”

When asked whether this update was in any way influenced by the criticism that the platform was exposed to when Binance took first place in the stock market ranking, the current CMC CEO, Carylyne Chan, told Cointelegraph:

“No, we have been working on this new update from the start. As we mentioned in our blog post updates to our ranking algorithm, we take an iterative approach to change, and ranking the web traffic factor was just one of those steps. “

He added: “I firmly believe that this iterative approach, not only in rankings but in all of our upcoming products, will help us make minimum products profitable. […] Get into the hands of our users faster and integrate their comments more agile. We hope that these faster rounds of iteration will help us work with our users to develop products that best suit their needs. “.

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