Kaiko, leader in crypto analysis, has published its quarterly ranking of the liquidity of the main cryptos. The study carried out for the fourth quarter of 2023 positions XRP ahead of competitors like BNB, Solana and Cardano, although the latter display a higher capitalization. The analysis highlights the importance of assessing real liquidity, beyond just capitalization.
XRP consolidates its leading position behind Bitcoin and Ethereum
In Kaiko’s ranking, cryptos are rated according to criteria such as market depth, the number of exchanges offering the asset or volumes traded. On this basis, XRP maintains the third position obtained during the previous quarter, just behind the two giants Bitcoin and Ethereum but ahead of Dogecoin.
This place confirms the strong liquidity that XRP benefits from thanks to its historical anchoring in the crypto market. In comparison, assets like BNB and Cardano only rank 13th and 10th respectively, while they are ahead of XRP in terms of market capitalization.
This significant gap demonstrates that theoretical capitalization does not faithfully reflect investors’ concrete interest in an asset, unlike indicators of real liquidity such as those analyzed by Kaiko.
Solana breakthrough thanks to fourth quarter hype
The other big winner in the crypto ranking this quarter is the Solana network (SOL), which jumped to fifth place from eleventh previously. SOL thus doubles Litecoin, until then fifth.
This spectacular progression can be explained by the enormous enthusiasm that Solana benefited from between October and December 2023. Over this period, the price of SOL literally exploded, going from 23 dollars to more than 120 dollars.
This sudden boom in the SOL asset resulted in a massive increase in crypto volumes traded and available market depth. This boom in activity has mechanically boosted liquidity measured by Kaiko over the quarter.
The hype around NFTs and decentralized projects on Solana has attracted many investors, both novice and institutional. This sudden influx of capital inflated volumes and fueled speculation which quadrupled the price of SOL in just a few months.
This quarterly study carried out by Kaiko highlights the possible gaps between capitalization and liquidity of a cryptocurrency. Some hot projects display relatively low liquidity while older assets like XRP excel in this regard. Analyzing liquidity indicators gives a fairer picture of the real adoption of a crypto than capitalization alone.
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