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.