Research report from Kaiko-the institutional-grade analytic platform had ranked XRP over BNB and others in terms of liquidity.
In a recent tweet, Kaiko recapped its published report that offered a comprehensive liquidity analysis across the top 40 tokens. It challenged the reliance on market capitalization as a key metric in gauging a token’s actual value.
XRP Leads Liquidity Ranking
In Q3’s liquidity rankings, Bitcoin (BTC), Ethereum (ETH), and XRP emerged as the top tokens, maintaining dominance in both market cap and liquidity. Notably, BNB, leading XRP in market cap, dropped to eighth place in liquidity, primarily liquid on the Binance exchange.
Despite BNB’s shift, the report highlighted XRP’s robust liquidity score, securing a notable position directly behind Bitcoin and ETH. Additional insights showcased Dogecoin (DOGE), Cardano (ADA), and Solana (SOL) closely mirroring their market capitalizations. Surprisingly, Litecoin (LTC) exceeded expectations, claiming the fifth spot in liquidity.
Also read: XRP: Analyst Explains Why $10 Milestone is Feasible
However, TON faced substantial underperformance, dropping from ninth in market cap to 37th in liquidity. Projects like Shiba Inu (SHIB), Uniswap (UNI), CryptoCom’s Cronos (CRO), and LEO token exhibited significant gaps between market valuation and liquidity.
In a noteworthy move, Ethereum layer two Arbitrum (ARB) surpassed its market cap ranking by 25 spots, securing a position in the top 10 most liquid coins.
The rankings considered factors such as spreads, market depth at 0.1% and 1%, volume, and the number of liquid exchanges supporting each token, catering to both higher-frequency traders and longer-term holders.
Furthermore, the report emphasized that having more liquid exchanges for a token adds complexity, making activities like oracle manipulation more challenging. BTC, ETH, and XRP notably led this metric, establishing a significant margin over other tokens.
