Most Cryptocurrencies Severely Lack Market Liquidity

According to new data posted by cryptocurrency analyst Willy Woo on Twitter, most cryptocurrency projects severely lack market liquidity, which keeps many serious investors away.

Coinmarketcap lists 4978 coins. Here’s the top 50 by volume. Below the top 40 doesn’t even register i.e. 4938 coins are illiquid.

Investors want liquidity at entry and liquidity on exit. Very few coins have credible liquidity to be good investments. pic.twitter.com/3kXgn3NWjV

— Willy Woo (@woonomic) November 13, 2019

As the data quoted by Woo shows, only about 40 coins among the 4,978 coins listed on CoinMarketCap show any resemblance of decent liquidity on major exchanges. Market liquidity is important to investors as gaining significant paper returns may not be of consequence if they are unable to be realized, either because the coins are difficult to sell once their investors wish to lock in profits from successful trades, or because buying and selling a relatively large percentage of an…