Because the value of cryptocurrency is strongly effected by the volume of buy and sell pressure. Market cap implies that a level of liquidity which is likely not present -- it can very difficult to sell large amounts of most crypto without at least temporarily tanking the value.
Market cap doesn't imply liquidity, not for equities either.
A larger market cap might be correlated with more liquidity, but you readily want to look at shares outstanding and average volume to measure liquidity. I don't see why crypto is special here.
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Because the value of cryptocurrency is strongly effected by the volume of buy and sell pressure. Market cap implies that a level of liquidity which is likely not present -- it can very difficult to sell large amounts of most crypto without at least temporarily tanking the value.
Market cap doesn't imply liquidity, not for equities either.
A larger market cap might be correlated with more liquidity, but you readily want to look at shares outstanding and average volume to measure liquidity. I don't see why crypto is special here.