Coin Metrics is pleased to offer our Trusted Volume metrics for leading cryptoassets via our API. We introduced Trusted Volume in the State of the Network and then updated/improved it in Q3. While this metric aggregates the reported volume from exchanges that we consider to be the most trustworthy, it is not meant to discredit any exchanges. By using a more conservative approach to determining trading volume, we hope to help institutions more confidently gauge a crypto asset’s spot volume as they consider institutional investments.
Our data-driven approach to calculating the “trusted volume” metric is based on a combination of quantitative and qualitative features including:
- Volume Correlation: volume correlation between the exchange and a group of ‘benchmark’ exchanges
- Ratio Analytics: analysis of key ratios including web traffic and trading volume
- Qualitative Features: blended score to quantify more qualitative features of an exchange such as developer tools, trading rules, and KYC thresholds
Trusted Volume is available for a wide selection of assets and pairs in our coverage universe via the “asset metrics” and “pair metrics” endpoints. We currently offer Trusted Volume at both hourly and daily frequencies.