Prominent analyst says only the top 40 cryptos are liquid

Crypto analyst Willy Woo said that very few coins are good investments, as data from CoinMarketCap has shown that only the top 40 out of the 4987 listed coins are liquid.

Less than 1% of all coins listed on Coinmarketcap have liquidity.

The overall lack of liquidity in the market gives power to the few whales that hold large quantities of a coin, which can swing the price of even the most stable cryptos at any given time.

Willy Woo, a prominent crypto analyst and partner at Adaptive Capital, certainly believes so.

Woo shared a tweet earlier today where he noted that out of the 4978 coins currently listed on CoinMarketCap, only the top 40 are liquid.

He shared a graph listing the top 50 cryptocurrencies "By volume," where only the first 39 have the liquidity that was registered by the exchange.

"Investors want liquidity at entry and liquidity on exit. Very few coins have credible liquidity to be good investments," he wrote.

Those looking to allocate some of their assets and gain exposure to crypto would steer clear from illiquid coins and put their money into large market cap cryptos such as Bitcoin.

Others pointed out that the volume of the top three coins on Woo's chart-USDT, BTC, and ETH-might be distorted, as all three are considered to be entry pairs to other cryptocurrencies.

A user pointed out that liquidity was irrelevant, as the notorious Ponzi scheme BitConnect had liquidity, but Chinese Ethereum competitor NANO didn't.