In the world of cryptocurrency, market capitalization is often cited as the ultimate measure of an asset's strength. However, financial analyst Jake Claver argues that this metric can be misleading.
Claver has developed the Liquidity Index, a six-part equation designed to gauge the true utility and stability of digital assets. This index takes into account market depth, liquidity continuity, slippage cost, available supply, settlement speed, and accessibility.
When applied to XRP, Claver's Liquidity Index reveals that the asset still has a long way to go before it can be considered suitable for widespread adoption by banks.