The real bitcoin trading market is much smaller than it is displayed on statistical portals, BitWise analysts suggest. In response to the results of their study, CoinMarketCap announced plans to change the approach when estimating trading volume on exchanges.

BitWise Asset Management sent a report to the US Securities and Exchange Commission (SEC) stating that the volume of fake bitcoin trading reaches 95%. BitWise is one of the companies that recently filed an application to the SEC wishing to launch exchange-traded fund (ETF) tied to the bitcoin exchange rate. In the presentation sent to the SEC, BitWise notes that, based on the analysis of 81 cryptocurrency exchanges, “the real market for bitcoin is significantly smaller, more orderly, and more regulated than commonly understood. 95% of Bitcoin trading volume is fake and/or non-economic in nature.”

Thus, BitWise insists that manipulations in the cryptocurrency market do take place, but they affect the way how statistics is displayed, not the trades themselves.

According to BitWise analysts, the popular statistical portal CoinMarketCap displays inaccurate data.

“Despite its widespread use, trading volume data on CoinMarketCap is inaccurate. It includes a large amount of fake and/or non-economic trading volume, thereby giving a fundamentally mistaken impression of the true size and nature of the bitcoin market.”

Thus, according to CoinMarketCap, the daily trading volume on the world cryptocurrency exchanges reaches about $6 billion, while BitWise estimates this figure at $273 million per day.

The main reason for fake statistics on trading volume is the actions of the exchanges themselves, which distort the figures of daily trading volume in order to have a field for increasing their fees for listing new tokens.

BitWise identified only 10 exchanges, which reflected the real trading volume. These trading platforms are Binance, BitFinex, Kraken, Bitstamp, Coinbase, bitFlyer, Gemini, itBit, Bittrex, and Poloniex.

In response to the BitWise report, the CoinMarketCap team announced that it would take this information into account and try to change the approach to count trading volumes on exchanges. CoinMarketCap plans to add a set of new metrics that will help display a more realistic picture of the crypto market. The portal team urged the community to share with them thoughts about which metrics are missing on CoinMarketCap.