Crypto LIquidity – More than Equities?

Crypto LIquidity – More than Equities?

AIRDROP 4
BLOCKCHAIN AND CRYPTOCURRENCY NOTES

How Liquid are Major Cryptos?
(More Liquid Than Major Equities)

December 6, 2017
Byron Berry, CFA
bb@coreventusinc.com
(647) 302-8276
Abhishek Jain

OVERVIEW
We looked at recent and more historical trading volumes for some of the larger (by market cap) cryptocurrencies and compared them with select equities.  Cryptocurrency liquidity is higher, and growing

One of the key factors in creating confidence in a market is trading liquidity.  Here we look at some individual stocks and cryptocurrencies to see you they compare in US$ trading volumes.

We took a look at some representative companies – Facebook (FB), Manulife Financial (MFC) and Canopy (WEED), representing a tech megacap, a stable large cap, and a high-flying industry leader in a hot space.

On the crypto side, we looked at Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Ripple (XRP).  These are typically the largest cryptocurrencies (today MIOTA is larger than XRP; this may change).

There are two key takeaways:

1.  The large cryptocurrencies are very liquid.  WEED and MFC are both highly liquid companies, and trade a fraction of what even XRP trades.
2.  Crypto volumes have all been growing strongly.  Looking at the data from the last two months vs. last week, the volumes in the last week are higher across all the cryptocurrencies.  We see this increased volume as a sign of market maturity – and also of speculative interest.

DISCLAIMER: AIRDROP is presented as an educational resource and should not be construed as individualized investment advice, nor as a recommendation to buy or sell specific cryptocurrencies or related commodities or securities. Coreventus Inc. and/or its employees may own cryptocurrencies, some of which may be mentioned in AIRDROP.

 

By | 2017-12-08T09:17:16+00:00 December 8th, 2017|Uncategorized|0 Comments

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