- CoinMarketCap adds Web Traffic in determining exchange ranking.
- The crypto tracking website has been known to serve inaccurate exchange volume data.
CoinMarketCap has implemented a new factor in ranking exchanges. The Web Traffic Factor helps rank exchanges via user engagement and traffic in addition to other metrics like exchange volume. The new Web Traffic Factor comes as CoinMarketCap receives backlash for reporting inflated or otherwise inaccurate data.
According to a report presented to the US Securities and Exchange Commission by Bitwise Asset Management, 95% of volume reported on CoinMarketCap is fake. Thus, this crucial change helps improve the accuracy of the platform’s exchange ranking.
Binance has recently acquired CoinMarketCap in one of the biggest acquisitions in the blockchain and crypto space.
Following the Web Traffic Factor implementation, Binance now ranks first with Coinbase Pro a close second.
Web Traffic Factor
The CoinMarketCap Web Traffic Factor utilizes user engagement and traffic to better exchange ranking. According to the blog post, each metric has its own weight. Keyword searching and relative ranking each carry a 25% weight, followed by pageviews carrying a 20% weight. CoinMarketCap’s decision to only weight pageviews 20% helps weed out bot traffic which can be easily bought.
The Web Traffic Factor utilizes a 0 to 1,000 scale, with the top exchange by web traffic always having a score of 1000. Binance currently has a score of 1000, while Coinbase Pro is close-behind at 972.
While this change does improve CoinMarketCap’s reporting accuracy, Binance CEO CZ believes there is still room for improvement. CZ notes that the Web Traffic Factor heavily influences the new exchange rankings.
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