Trading volume has long been the default metric cited by analysts, media pundits and aggregators to rank cryptocurrency exchanges. While volume provides a high-level overview of marketplace activity, it can be faked to create the impression there’s more legitimate trading activity on a marketplace than there really is. 

The exchange can simply print non-existent trades or they can incentivize clients to engage in wash trading (the placement of buy and sell orders in the same size at the same price that instantly cancel each other out, creating additional exchange trade volume that adds no actual liquidity). Volume can be abused as a vanity metric that doesn’t offer a meaningful indicator of a legitimate trader’s expected experience.

Liquidity: The lifeblood of any thriving marketplace

Think of liquidity as the speed and ease with which orders are filled without impacting an asset’s spot price. As a metric, it tells participants how easy

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