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【Observation】CoinMarketCap's new coin ranking system places Tether in first place, Zhao Changpeng: Not perfect accurate, but better than before

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【Observation】CoinMarketCap

CoinMarketCap, the top cryptocurrency data website by traffic, has been acquired by Binance for over a month now. In addition to introducing liquidity data on May 8th, an update blog post on May 13th also announced: "Including website traffic in the ranking criteria."

Following the implementation of the new system on CoinMarketCap (CMC), Binance has taken the top spot in the exchange rankings, sparking discussions. However, a survey revealed that incorporating "liquidity" and "website traffic" into the ranking factors does align more closely with people's perceptions of exchange rankings.

Media Focus on Changes at CoinMarketCap

Media outlet Cointelegraph dug up an interview with former CoinMarketCap (CMC) Strategy Lead Carylyne Chan, where she once stated, "Website traffic is not a good metric." This is because she believed that many traders transact using API keys and do not generate traffic to the website.

Contrary to CMC's new announcement stating, "Website traffic will be a good intermediary representation instead of asking exchanges for user count data." This clearly differs from past beliefs, leading the media to question CMC's independence.

However, even Larry Cermak, the Director of Research at The Block who often criticizes Binance, has expressed approval of CMC's new approach. He believes that rankings are subjective, but through four elements, they can be difficult to manipulate. The four elements he mentioned include:

1. Liquidity (order book depth, spread analysis)
2. Estimated website traffic
3. Volume trend analysis (volume from compliant exchanges)
4. Integration of cold wallet assets with on-chain analysis

The first two elements mentioned by him are also part of CMC's new approach. When Larry previously criticized Binance for using the burn amount of their native token to showcase their strength, he also mentioned that "website traffic" data is the way Binance can prove its capabilities.

Regardless of media judgments, CMC's current usage rate still surpasses that of other competitors. According to rankings on another competitor, CoinGecko, Binance ranks first in the spot market, first in the decentralized market, and fourth in the derivatives market. This result, along with CMC's overall ranking, is quite consistent.