CoinMarketCap has been making changes to its algorithm since it was acquired by Binance.
The new update that have been just implemented is to replace the previous default ranking of exchanges by Web Traffic Factor.
The previous default ranking of exchanges was only an intermediate step in the development of this comprehensive solution.
The new algorithm now takes into account exchanges spot market pair rankings and the respective spot market pair’s Confidence score.
- The market pair ranking is based on the combination of reported trading volume, liquidity and an estimation of an exchange’s user base (via the proprietary Web Traffic Factor).
- Each market pair is then scored by the Confidence indicator that reflects the level of confidence that CoinMarketCap has in the veracity of the reported volume of the market pair reported by the exchange.
CoinMarketCap plans to continue to improve this ranking in a second phase — in which we will be including more pertinent factors that our users and DATA partners have previously suggested.