On June 29, 2020, CoinMarketCap (CMC), a leading ranking platform for crypto exchanges and assets, announced that it had launched a ranking page for decentralized finance (DeFi) tokens to enable users to keep up with the latest trends in the sector.
The news comes as the crypto community recently exploded in excitement over the concept of liquidity mining for Compound’s COMP token, which propelled the decentralized borrowing and lending protocol to the top of the DeFi charts in the space of less than a week.
Indeed, DeFi is rising to prominence as the sector that leverages decentralized ecosystems to renovate outdated financial products into trustless and transparent protocols that operate without any third parties.
With DeFi lockup value rallying from its plunge in Mid-March during the Black Thursday crash, the Total Value Locked (TVL) in DeFi, as tracked by Defipulse, has now surpassed the $1 billion thresholds, mainly thanks to developments in Compound and WBTC.
CoinMarketCap has seemingly sensed an opportunity in this growing sector, with the ranking site now offering users a state-of-the-art DeFi ranking platform that displays each token’s market cap, price, volume, and much more.
CoinMarketCap Leads the Way in Crypto Metrics
The DeFi ranking product is the first new launch from the site in quite some time, although the leading ranking platform has constantly been working to improve the data quality of its rankings.
Given that CoinMarketCap already has a significant user base for its core crypto ranking service, this new DeFi ranking product has a strong chance of becoming a leading DeFi token aggregator in the market.
In October 2019, CoinMarketCap announced the launch of a new product that ranks crypto-asset lending platforms according to the interest rates on offer.
The product, called Interest by CoinMarketCap, works in a similar way to the existing ranking service, but in this case, ranks crypto assets by the interest rates borrowers and lenders either pay or earn, respectively. Along with interest rates, other data, including minimum deposit duration, start times for deposit offerings, and platform descriptions, are available via the site.
Criticism Of its Latest Exchange Rankings
CoinMarketCap has long enjoyed the prestigious status of being the leading ranking platform. Still, according to some in the crypto community, a series of controversies have eroded trust in the site’s capacity to deliver neutral results.
The site first encountered criticism when Bitwise exchange published a report suggesting that 95% of the volume conveyed on the CMC was phony. CMC then returned to the spotlight in April of this year when the data ranking site was acquired by Binance for an unspecified amount alleged to be in the hundreds of millions.
Almost immediately after the takeover, CMC adopted an iterative approach to improving its rankings, and its new owner rose to the top spot. The move drew vicious condemnation from competing exchanges as well as from industry leaders and the crypto community at large.
The controversies went on in early June when CMC’s exchange rankings became wildly biased, where high profile competitors of Binance were relegated to positions closer to the bottom 200. BitMEX, in particular, dropped to position 174 in the rankings despite the popular exchange having the second-highest web traffic.