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In an attempt to provide more accurate information regarding cryptocurrency exchanges, the popular data tracking website CoinMarketCap has launched exchange ranking by web traffic.
Interestingly, Binance, the company which recently bought CMC, is currently occupying the first spot with a perfect score.
CMC Evaluates Exchanges By Web Traffic
Fake volumes from cryptocurrency exchanges have been a reasonably bothersome topic within the community. CoinMarketCap has been implicated previously in displaying such alleged misleading information.
The company acknowledged the issue, by saying “exchanges used to be ranked by their reported volumes. However, volume inflation is a problem that plagues the cryptocurrency space.”
To fight such alleged false data on exchanges, CoinMarketCap has introduced a new feature called Web Traffic Factor as a more comprehensive alternative.
Instead of relying on exchanges to send their own data, the Web Traffic Factor will operate with a scoring system where the top platform will “always be given 1,000 points.” The rest of the exchanges will receive scores based on a relative comparison against the one placed at the first spot. That scores will be updated monthly.
The announcement also informed that the new feature will take into account various factors before issuing the final output score. It will extract data points from multiple web traffic solutions, such as SimilarWeb, Ahrefs, and Alexa.
Some of the measures and how they will weigh-in are as follows: pageviews (20%), unique visitor count (15%), bounce rate (10%), time-on-site (5%), relative ranking (25%), and keyword searches on large search engines (25%).
(Un)Surprising Leader
According to the already active website, the top listed exchange at the moment is Binance. The leading cryptocurrency platform by volume has received the 1,000 points. Coinbase Pro (972p), BitMEX (960p), Kraken (856p), and Indodax (838p) complete the top five.
It’s worth noting that last month Binance announced the acquisition of CoinMarketCap. At the time, Binance CEO Changpeng Zhao (CZ) said that both companies would work independently from each other.
However, some community members have expressed doubts regarding the unbiased score that Binance has received. They are implying that since the exchange owns the data company, it’s rather convenient that it’s presented as the top platform.
CZ has not commented directly on those insinuations but said that “personally, I find this ranking useful again. Now, I can finally have a clear view of the field and see who the real upcoming exchanges are, lol.”
However, it’s worth noting that web traffic data from the popular resource Similarweb entirely confirms the ranking of the websites and also places Binance as the predominant leader with monthly visitors of more than 23 million for the month of April alone. It also confirms the subsequent ranking of the following two exchanges – Coinbase Pro and BitMEX as their websites received 21.7 million and 8 million, respectively.
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