The cryptocurrency research and data platform Messari added 10 new exchanges to its Real Volume metric as part of a revised methodology.
The ranking is an attempt to value exchanges without considering the laundry trade. This was done according to the historical Bitwise report, which indicated that 95% of the volume was counterfeit. The report identified ten legitimate volume exchanges: Binance, Bitfinex, Bitflyer, Bitstamp, Bittrex, Coinbase Pro, Gemini, itBit, Kraken, and Poloniex.
The change in methodology this week has put Huobi, OKEx, Liquid, Bithumb and UPBit in the top 10 in terms of volume. Binance remains at the top, which could add credibility to CoinMarketCap’s recent and controversial decision to rate exchanges for web traffic, which also led to Binances # 1.
Messari CEO Ryan Selkis said the renewal was due to the fact that some great players were left out of the actual volume metric “With * some * exaggerated volumes, but * huge * legitimate trading volumes at the same time. Giants like Bithumb, UpBit and CoinOne in Korea, Liquid in Japan and above all Huobi, OKEx / OKCoin and Gate.io in China” “
A new approach
The new approach assesses the legitimacy of the trading volume of the exchanges based on 10 statistics from third-party providers::
Ratings, ratings and liquidity estimates from CoinGecko, CoinMarketCap, CryptoCompare, CryptoWatch (Kraken), Nomics and the FTX Volume Monitor as well as chain transaction data from Chainalysis and other providers of chain data as well as data anecdotes from the main retailers. “
The added Korean and Chinese exchanges were given “a 50% haircut … to better approximate their true volume”. This is probably better than analyzing the web traffic of these exchanges., which resulted in the “actual volume” being reduced by 90% of the reported trading volume.
However, it is clear that it is still a bit rough.
“Successful, if less accurate”
Selkis admits that the change may be “less successful than the alternatives,” although “it is more precise.”and the methodology is regularly checked:
“It is important that we review our methodology quarterly to add or remove component replacements and adjust volume adjustment parameters.”
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