Uncovering Promising Altcoins
Over the past couple of years we’ve seen an absolute boom in the quantity of altcoin projects. The crypto community has gone from just a handful of alternative crypto investments to currently 2,514 actively traded tokens and coins. Each project claims to offer something unique that has the promise to scale the world to new heights.
While some of these projects are starting to deliver on promised innovation, unfortunately many are revealing the cracks in their teams, missions and models. Flawed ICO’s, lack of compliance, insignificant development activity, dwindling adoption and some bad actors have resulted in distrust for many altcoin projects. The result from an investment perspective is prices either slowly or quickly bleeding to nearly zero as trust in Bitcoin dominates.
But what if some altcoin projects are showing positive growth metrics?
What if trading some altcoins could earn an investor more Bitcoin?
What if some altcoins are extremely strong longer-term investments?
Let’s explore these ideas further. At LunarCRUSH, we believe that community ultimately drives adoption. Without it, you don’t have a sustainable project. To do this, we focus on collecting varied levels of social conversations across many platforms and combine those insights with market indicators. When we look at all of the projects we collect data for, generally speaking, when you have increasing community activity over time you also generally have increases in the metrics we all care about, price and utilization.
In order to get a better view of the health of altcoins, we’re introducing LunarCRUSH AltRank. This combined metric seeks to provide a broader view of the health and performance of altcoins. AltRank looks at both financial metrics alongside community metrics and seeks to identify altcoins that outperform Bitcoin during specific timeframes. There’s four main factors that go into the AltRank.
PRICE CHANGE
AltRank compares the price performance of an altcoin relative to Bitcoin price performance. Performance is calculated over specific timeframes and updates every 5 minutes.
TRADING VOLUME
There’s a lot of altcoins. If there’s little trading volume, they’re incredibly hard to trade profitably and accurately. AltRank looks at the trading volume of each coin and ranks altcoins from highest to lowest trading activity.
SOCIAL VOLUME
As we like to say, “without community there is no crypto.” Social volume is a key factor in determining if a coin has credibility. Layering in social activity from multiple channels such as Twitter, Reddit, shared links, news sources and more provides a view into the community size of an altcoin. When layering this information on top of price, AltRank provides some incredible results.
SOCIAL SCORE
AltRank dives deep into social activity looking at likes, shares, comments, followers, and more across multiple social channels. This is key to determining how much engagement the community has across posted content…and if it’s from an actual human.
LunarCRUSH.com currently displays the AltRank within a sortable column on the Markets page as well as as a top-level indicator on coin detail pages. In the future, expect many more ways to access AltRank.
Bottom line, not all altcoins are the same and it’s time to start viewing them very differently. AltRank is very important indicator that will hopefully provide value and confidence in altcoins. We hope that the AltRank helps uncover some interesting projects that help advance your crypto portfolio.
🌎🔥🚀🌕 Your LunarCRUSH Team
