As weakness continues in Bitcoin and altcoins, Kaiko has published a report addressing the relevance of market cap and liquidity.
Cryptocurrency research company Kaiko evaluated the cryptocurrencies in the top 50, drawing attention to the importance of liquidity.
Kaiko said in its report that there is a mismatch between market value and liquidity of some altcoins.
According to the report, Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and XRP are at the top in terms of liquidity and market value compatibility. However, the same compatibility is not the case for altcoins such as LEO, WBT and HYPE. The report stated that although these altcoins have high market value, their liquidity is low.
According to the Kaiko report, the greatest match between market value and liquidity is found in BTC, ETH, SOL and XRP, while the worst liquidity match is found in WBT, TKX, LEO, OKB and FTN.
In its report, Kaiko ranked cryptocurrencies from worst to worst according to the liquidity score it gave based on the harmony between market value and liquidity:
” BTC, ETH, XRP, SOL, DOGE, ADA, SUI, PEPE, LTC, LINK, SHIB, VET, GT, HYPE, MNT, KAS, XMR, CRO, FTN,OKB, LEO, TKX and WBT.”
Finally, Kaiko analysts also listed five key factors affecting liquidity: market depth, number of liquid exchanges, bid-ask spread, trading volume and market maker competition.
*This is not investment advice.
