Kaiko Data, a prominent cryptocurrency market research firm, has released a report on the liquidity of the top 30 tokens in the market. The report, authored by Kaiko Data’s Research Analyst Conor Ryder, evaluated each token based on market depth, volumes, and spreads to arrive at an overall asset liquidity score. The results of the study, which were shared by Ryder in a Twitter thread, highlighted the tokens with the most misleading market cap when compared to their liquidity score. The report emphasizes the importance of considering factors like token lockup periods and insider-held supplies to make informed investment decisions.
The report found that Dogecoin (DOGE) and Litecoin (LTC) performed well in the volumes category, while Polkadot (DOT) did not. Meanwhile, Solana (SOL) and Binance Coin (BNB) stood out for market depth, with Binance Coin falling short in this category. Polygon (MATIC) and Cosmos (ATOM) were among the standouts in the bid spreads category, indicating a high level of liquidity. However, Solana (SOL) did not perform as well in this category.
Cosmos (ATOM) saw a significant improvement in liquidity, moving up five spots in the rankings, while Filecoin (FIL) and Litecoin (LTC) also experienced improvements. However, Ryder suspects wash trading may have played a role in these changes. On the other hand, Binance Coin (BNB) saw a significant decline in liquidity, moving down six spots in the rankings. Tron (TRX) also saw a decline, moving down three spots in the rankings.
The report also highlighted several examples of tokens that are less liquid than their market cap suggests, including Binance Coin (BNB), Polkadot (DOT), Solana (SOL), and Shiba Inu (SHIB). Conversely, Alpha Token (APT) is more liquid than its market cap suggests. The report provides valuable insights for investors to make informed decisions about their cryptocurrency investments.
In a separate report, Kaiko Data found that XRP has surged by almost 40% over the past four weeks, outperforming other leading digital assets like Bitcoin, primarily due to the contribution of retail investors. The report highlights the dynamic nature of the cryptocurrency market and the need for investors to stay informed to make the most of their investments.
Overall, the Kaiko Data report provides valuable insights into the liquidity of the top 30 tokens in the cryptocurrency market. By evaluating each token based on market depth, volumes, and spreads, the report highlights the tokens with the most misleading market cap when compared to their liquidity score. The report emphasizes the importance of considering factors like token lockup periods and insider-held supplies to make informed investment decisions. Investors can use this information to make informed decisions about their cryptocurrency investments and stay ahead of the dynamic cryptocurrency market.
