What is the Volume / Market cap ratio?

The volume-to-market cap ratio is a key metric for assessing a cryptocurrency’s liquidity—how easily it can be traded. Here’s what it means and how Coinranking applies it.

How It Works

This ratio is a coin’s 24-hour trading volume divided by its market cap. A higher ratio indicates strong liquidity, meaning the coin trades smoothly with stable prices. A lower ratio suggests weak liquidity, often leading to volatility and slippage (the gap between expected and actual trade prices).

Coinranking’s Threshold

Coinranking sets a specific threshold: a ratio above 0.0001 qualifies a coin for our “first tier,” signaling good liquidity and stability (details in our ranking guide). Below 0.0001, we label it “low,” warning of potential risks due to limited trading activity.

Why It Matters

In short, a high ratio means easier, safer trading; a low one flags risk. Coinranking’s 0.0001 cutoff helps you spot the difference.