The use of old and new cryptocurrencies is increasing day by day. With this increase, the crypto development market is becoming pervasive than ever. Now, it is not under the impression of scandals and hacks. Indeed, now it is entering the space of non-profits by facilitating them to conduct safe, fast, and efficient transactions while establishing trust. Read on this blog to find out how cryptocurrency exchanges are helping developing countries to include unbanked people and provide them access to efficient financial services.
When we talk about the cryptocurrency exchange industry, the efforts to achieve global adoption are commendable. However, an alarming issue with them is the scarcity of enough liquidity. Not all cryptocurrency exchange platforms experience a high user count. To conduct faster settlements and channelize the buying and selling mechanism, stocks, bonds, or digital currency require a higher liquidity market. Indeed, as per a study conducted in early 2019 to track daily crypto trade volume, nearly 56 exchange platforms faked their data. Given this event, CoinMarketCap announced that it will consider liquidity as a default metric for ranking cryptocurrency pairs and exchanges.
So, let’s find out why liquidity is inevitable for cryptocurrency exchange platforms.