Research Indicates XRP Defeats Cardano, BNB, and Solana in Liquidity Rating

According to a research report from Kaio, an institutional-grade analytic platform, XRP was rated above Cardano, Binance, and Solana.

In a tweet, Kaiko summarized its report that provided a detailed liquidity assessment across the top 40 tokens. It disputed the traditional dependence on the market cap as a critical benchmark and emphasized the importance of liquidity in evaluating the actual value of a token. 

XRP Dominates in Liquidity Rating  

In the 3rd quarter liquidity rating, Ethereum, Bitcoin, and XRP are the top three tokens. According to the report, Bitcoin and Ethereum have retained their control in liquidity and market capitalization. 

In the meantime, the third quarter report shows that BNB, which comes before XRP in market cap ranking, fell to the 8th position in relation to liquidity. Kaiko established that in most cases, BNB is liquid on the Binance exchange.

Further, the report revealed XRP’s higher liquidity rating. Specifically, it ranked directly behind Ethereum and Bitcoin in terms of liquidity metrics. 

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Additional insights from the report indicate that Cardano (ADA), Solana (SOL), and Dogecoin (DOGE) display performances closely corresponding to their market caps. Additionally, the report indicated that Litecoin exceeded expectations, getting to the 5th spot in liquidity. 

TON Registers Considerable Underperformance

On the contrary, TON encountered considerable underperformance. In this case, it ranked 9th by market capitalization and plunged to 37th in liquidity. More projects with substantial rifts between their liquidity and market valuation include Uniswap (UNI), Shiba Inu (SHIB), Leo token, and CryptoCom’s Cronos (CRO). 

The Ethereum layer two Arbitrum was also outstanding since it exceeded its market capitalization ranking by 25 spots. Notably, it acquired a position in the top 10 most liquidity coins. 

Various factors determined the 3rd quarter ranking, including 0.1% and 1% market depth, spreads, volume, and the number of liquid exchanges backing every token. The two clear levels of market depth support longer-term holders as well as greater-frequency traders. 

The report also indicated that surplus liquid exchanges for a token included an additional intricacy layer. Activities, for instance, oracle manipulation, become more complex. Bitcoin, Ethereum, and XRP dominated this metric considerably, creating a noteworthy margin over the rest of the tokens. 

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