- A new 2023 Q4 report positioned XRP ahead of BNB, SOL, and ADA regarding liquidity.
- BTC, ETH, XRP, and DOGE retained their top positions in market liquidity ranking.
- BNB drop steps below the liquidity ranking figure observed in 2023 Q3.
Kaiko, an institutional-grade analytic platform, recently released a research report that positioned XRP ahead of competitors such as Binance (BNB), Solana (SOL), and Cardano (ADA) in terms of liquidity.
The report weighed in on the liquidity metric of 50 top-ranking tokens, with the fourth quarter of 2023 being the observation period. Kaiko questioned the conventional use of market capitalization as the primary metric and highlighted the importance of liquidity in accurately assessing the true value of a token.
Tokens are assessed and assigned points based on their 0.1% market depth, 1% market depth, number of liquid exchanges, spreads, and volumes.
Kaiko first pointed out that after a lackluster Q3 marked by multi-year lows in trading volumes, Q4 witnessed a notable surge in activity. Bitcoin took center stage amid anticipation of a decision on spot ETFs . At the same time, Solana experienced a remarkable rally, soaring from $23 at the quarter’s onset to a peak of over $120 by year-end.
Regarding the liquidity ranking, the report highlighted that Bitcoin (BTC), Ethereum (ETH), XRP, and Dogecoin (DOGE) retained their top positions in market liquidity ranking. In other words, the leading quartet remained the most liquid tokens, as observed in the third quarter.
Q4 Token Liquidity Ranking | Kaiko
Meanwhile, the first notable shift occurred at the fifth position, where SOL surged ahead of Litecoin (LTC). Interestingly, digital assets such as BNB and Solana, which rank above XRP and DOGE in market valuation, rank behind in terms of liquidity metrics.
Specifically, BNB got a liquid score of 13, though the asset is the third most valuable crypto token. Besides, BNB has fallen three more steps below the liquidity ranking figure observed in the third quarter of 2023. According to the research, BNB is largely liquid on the Binance exchange.
Notably, Chainlink (LINK) climbed six spots to secure the seventh position, MATIC rose four places to claim the eighth, and Avalanche (AVAX) made an impressive leap of 14 positions to secure the ninth spot. Closing out the top ten was ADA, which saw a decline of three places.
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