Identify wash trading and volume quality

Evaluate an asset's volume-to-liquidity ratio. If the USD volume substantially exceeds the depth of the order books (a high volume-to-depth ratio), it suggests that the genuine market demand isn't accurately represented by the current trading volume, hinting at possible wash trading.

The liquidity-volume-ratio is significantly higher on Bitforex.

How to build the request

With the Market Metrics Asset endpoint, you can use the following parameters to source the specific information you're looking for:

Paramater	Value
asset	ltc
start_time	2023-12-28T00:00:00.000
end_time	2024-01-28T00:00:00.000Z
interval	1d
sources	true

You can find specific asset codes from our instruments explorer or reference data.

Here's an example of an HTTP string request using the values above:

https://us.market-api.kaiko.io/v2/data/analytics.v2/asset_metrics?start_time=2023-12-28T00:00:00.000Z&end_time=2024-01-28T00:00:00.000Z&asset=ltc&sources=true&interval=1d

When you receive your response, search for the following fields to find the data you need:

• total_off_chain_volume_usd

• buy_market_depths - bid_volume_1

• sell_market_depths - ask_volume_1