- Bitcoin stays strong around USD 9,400 on the weekend
- Whale addresses for Ethereum have hit their highest numbers in ten months
- CoinMarketCap has pushed out new metrics aimed at tackling fake volume but accusations of Binance favoritism persist
Bitcoin price continues on its positive tones for the weekend but has given no real clue yet to how it will exit the weekend. But if the attention is all over Bitcoin, altcoin season, at least for some of the bigger projects out there, could be on the cards as well.
For Ethereum (ETH), who has long been the biggest altcoin project by market capitalization, has not hit its highest levels in ten months, according to analysis from crypto data firm Santiment, who says that the top 100 wallets not belonging to exchanges collectively hold 21.8 million ETH (currently worth about USD 4.8 billion). In US dollar terms, this is the highest ever figure among the top 100 whale wallets.
Santiment also said that these large Ether addresses have been on a hoarding pattern for a long time, with the consistent buying probably causing a surge in current ETH prices, which have grown about 10% in the past three days.
This is the largest collective balance held within the top pic.twitter.com/AJgfgsYFE5
— Santiment (@santimentfeed) May 28, 2020
“In the last two days alone, these top $ETH whale addresses have added an additional 145,000 $ETH (about $30,300,000) as the price of #Ethereum grew by a bit over 4% in this timeframe.”
Data tracker Messari’s Ryan Watkins, who keeps an eye on the number of tokens built on the Ethereum platform, also notes that ERC-20 tokens are now almost half of the total value stored on the blockchain, with a shift in pattern over how value is transferred and stored there. He explains:
“ETH is increasingly close to being flipped on its own blockchain. Whether or not it does will likely depend on the growth of stablecoins vs growth in the value of ETH. Nevertheless, this transformation in value on Ethereum is not just about assets being stored. They’re also being used to move significant amounts of value. Driven by the growth of stablecoins, Ethereum is on pace to settle more than USD 530 billion this year.”
Shifting to another metric-based news, we now examine how Binance’s newly-acquired data aggregator CoinMarketCap (CMC) is pushing out new types of metrics in a claimed effort to tackle fake volume — a problem that has plagued the platform, according to critics.
The new ‘Confidence’ metric supposedly uses machine learning to look at all data taken by CMC “to determine if the volumes reported by exchanges are inflated, and to what extent”. Alongside this, a new default ranking system for pairings will replace the default sorting metric of volume.
In future, a single algorithm will determine ranking, based on ‘Liquidity Score’, ‘Web Traffic Factor’, and volume of each pairing. A week ago ‘adjusted volume’ was removed from CMC, a metric that ignored volumes generated by zero-fee pairings, transaction mining pairings and derivatives.
Despite all these improvements, users are accusing CMC to be favoring its parent company Binance, especially in the wake of the ‘Web Traffic Factor’ released on 14 May, which supposedly analyzes user activity on exchanges, including page views, unique visitors, time spent on site, search engine bounce rate, and search engine rankings.
Naturally, Binance, with its superior user count, appeared top of the rankings. ‘Improved liquidity score’, which CMC released on 8 May, was rather well received in comparison, as it sought to identify the crypto exchanges producing the least slippage on a priority of order sizes from USD 100 to USD 10,000 — something a lot of retail traders would have appreciated.
Can you really blame Binance for making its own ratings agency place them as the top dog? We recommend always looking at more than one source to make your own judgment. Perhaps consider using CMC along with CoinGecko!
Image Courtesy: Pixabay