CoinMarketCap has announced that it will be supplying data for Vela’s institution-grade market data feeds, making it another major player in the crypto world to encourage investment from traditional financial institutions.
The Partnership
CoinMarketCap is a prominent site that lists and ranks cryptocurrencies—the most popular of its kind. Part of its popularity comes from its comprehensiveness, as it boasts listings for over 1800 coins. It has always been very accessible for general users, but now, it will expand its services into the realm of institutional trading.
Meanwhile, Vela Trading Systems is a firm that provides a unified feed of market data to institutional clients, such as investment banks, broker-dealers, and hedge funds. In today’s announcement, CoinMarketCap endorsed the product it is now involved in:
“Vela’s SuperFeed provides low-latency, normalized data without the need for any client infrastructure, delivering the levels of performance, availability and reliability required of a trading quality market data feed.”
Vela has always provided traditional market data, but now CoinMarketCap will be bringing crypto data to the platform.
A Growing Trend
The partnership is reflective of a larger trend: increasing institutional investment in cryptocurrency. Institutional interest creates a demand for various new crypto services targeted at institutions, such as Coinbase Custody and Ripple’s xRapid payment system.
More specifically, various crypto companies and websites have data-sharing partnerships similar to that of Vela and CoinMarketCap. CryptoCompare is providing aggregated data to Thomson Reuters’ Eikon platform, while Blockstream is supplying information to ICEX’s data feed, to name a few.
Although institutional investment might be good for crypto, it may leave individuals behind. Since Vela’s services are aimed at institutions, the general public and independent investors probably won’t directly benefit from CoinMarketCap’s partnership.
Many CoinMarketCap users want more direct improvements instead of partnerships: their complaints focus mainly on the site’s inaccuracies and unreliability, particularly when it comes to artificially inflated trade volumes.
CoinMarketCap nevertheless remains popular due to its comprehensiveness and usability, and the sheer momentum with which it is currently dominating the market for crypto data aggregators.
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