There are multiple measures of liquidity and volume is just one of them.
Market depth (number of oustanding orders) and slippage (effect of executing an order on market price) should also be taken into consideration.
Topic: [2016-06-09] news.bitcoin.com-High Volume Doesn’t Mean Liquidity: New Kaiko... (Read 202 times)
June 09, 2016, 11:57:38 AM
June 09, 2016, 09:56:36 AM
High Volume Doesn’t Mean Liquidity: New Kaiko BTC Exchange Report
Until now, the Bitcoin industry has determined the size and market share of these exchanges by examining trade volume data, which is generally supplied by the companies themselves. Given the varying methodologies employed by different companies to record this information, and the fact that trades represent past prices and not available offers, it may not always offer the most accurate price of bitcoin.
READ MORE >>> https://news.bitcoin.com/new-kaiko-bitcoin-liquidity-report/
Until now, the Bitcoin industry has determined the size and market share of these exchanges by examining trade volume data, which is generally supplied by the companies themselves. Given the varying methodologies employed by different companies to record this information, and the fact that trades represent past prices and not available offers, it may not always offer the most accurate price of bitcoin.
READ MORE >>> https://news.bitcoin.com/new-kaiko-bitcoin-liquidity-report/
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