In our first attempt at measuring the "significance" of a cryptocurrency, we look at the following two factors:
- Global Market Capitalization
- 30-day volumes traded across the worlds exchanges
The first item is a measure of the "value" held by everyone owning the cryptocurrency whilst the second item measures how actively it is traded or used over an average month. The two items are mutually exclusive, since we may have a forked coin or a heavily pre-mined coin that "inherited" lots of value through airdropped or pre-issued coins but does not necessarily trade that often. These two items together would be a suitable rough guide as to the "significance" of a crypto currency.
The table below shows the Top-10 most "significant" cryptocurrencies with their respective market cap ranking and traded volume ranking. In calculating the rankings we look at 1-part market-cap ranking and two-parts volume ranking as we feel that how actively the crypto is being used among the global community is twice as significant as its market-cap, but this is obviously open to different interpretations.
Note that this does not validate the legitimacy of the coin, its technical architecture nor likelihood of survival or future adoption, it merely measures a snapshot of its "significance" among market participants. If you are a brave cryptocurrency participant, you are encouraged to properly understand the underlying technical architecture, support structure and other fundamentals if you want to properly evaluate the cryptocurrency. Or attend our in-depth seminar where we cover all these cryptos.
Dwaine van Vuuren
RecessionAlert, Sharenet Analytics
Dwaine van Vuuren is a full-time trader, global investor and stock-market researcher. His passion for numbers and keen research & analytic ability has helped grow RecessionALERT.com (US based) and PowerStocks Research (now Sharenet Analytics) into companies used by hundreds of hedge funds, brokerage firms, financial advisers and private investors around the world. An enthusiastic educator, he will have you trading and investing with confidence & discipline.