Does MarketCap a good metric to rank cryptocurrencies?

[Gurujebs]

When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.

Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?

My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.

The moment they allowed people to start making comments on coins listed, that's when I knew that the platform is now a shit show and I'm surprised that this was bought by Binance some years back, an investment that's whorth over $200M is not even better than some of the alternatives I have seen like Coin market cal and the rest.

They did some patches to review the platform and they sent email to some members to verify their email, maybe it was to weed out bots accounts and differentiate between real and fake accounts but I still haven't see anything better.

I will advise you to take a look at Coingecko, they are independent and unaffiliated to any company, thier trust scores are fine and even the dark mode is not eye disturbing from the screen.

[Freemind]

These projects are always quick solutions to the problems of main cryptos. For example, BCH is a quick solution to 1 MB block size, and many tokens are solutions to the problems of ETH, such as Ethereum Classic, ADA, and others. before investing, it is better to add other criteria such as technical development, code update, and uses outside the platforms but many only ranking tokens based on marketcap.

That's precisely why I say it. CoinmarketCap is used to know the economic value (although we already know that there are alternatives) of coins and tokens, but from my point of view it is not useful for much else. It has links to the project websites and social networks for example, but that is not 100% useful to me. I understand that it is not focused on much more than those things, but if they updated every new movement of the projects, their new products, links to open source repositories, etc., it would be much more useful to me.

[Metha Wulandarin]

Why is it that we encourage people to invest in bitcoin? It is because it has the highest marketcap and also because it has the strongest blockchain. We put marketcap into consideration.

I agree with you and this is just an addendum.
For Bitcoin itself almost everyone knows about Bitcoin and many stable coins are storing BTC for backup such as USTC in the terra station network which is now bankrupt and there are many people who exchange FIAT money to Bitcoin to avoid taxes and until now there is a lot of money laundering through Bitcoin.
Among them again because everyone knows that the price of Bitcoin has continued to rise throughout the year, this is the reason most people use.

[Uruhara]

Everything is important. Ranking based on Marketcap is also very important as an indicator in assessing an altcoin. But looking at a coin's MC ranking certainly shouldn't be based on when a project gets hype. But look at their MC rating when an altcoin project has a sideways price or when the market is calm. Because the real MC will be visible at that time.

This may be a good point, but it will not help you, as knowing the price of the cryptocurrency at the bottom means that it may not rise again, especially since many of them fail to return to previous levels.

That's right, that's why I added that analysing based on MC alone is not enough because of the anticipation of some failed crypto projects or those that have no development.

It's just that considering whether an altcoin project is good or not is not enough from the CMC ranking alone. But there must also be consideration of other things related to fundamentals.

And this is where we need to understand how to analyse fundamentally. Such as knowing that there will be an event or that there will be better developments in related crypto projects. For example, like AVAX, which had experienced a big decline and then was able to bounce back because based on fundamental analysis they were able to rise due to their collaboration with the JP Morgan company regarding the Tokenisation of assets planned for 2024. And for those who do not know this news, when avax is priced around 10 or 13 usd, they are definitely afraid to buy avax. But for those who know this news and have analysed fundamentally then I am sure they have entered since avax was at 13 usd. Because I also did and continue to hold it until now. Because the hypenya is actually not finished.

[gunhell16]

When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.

Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?

My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.

When it comes to market caps, CMC and Coinecko are the only tools I use to find out if the tokenomics of a new coin or token has potential. These two platforms will help community investors choose coins, whether they have potential or not.

Through these two platforms, we can see if the market cap of a coin is high or low in the crypto space, specifically in the circulation supply and how much its total supply is. We can see and know how much their market cap is, and we will know if they are high or low cap.

[Dave Marshall]

MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one. MarketCap is calculated by multiplying the current price of a coin by the total number of coins in circulation. This means that coins with a large supply or a high price can have a high MarketCap, even if they are not widely used or have low liquidity. MarketCap does not reflect the true value or potential of a cryptocurrency, as it does not account for factors such as adoption, innovation, security, or utility. A better metric to rank cryptocurrencies would be to consider their network effects, their technological features, their governance models, and their social impact. These aspects can provide a more holistic and accurate picture of the crypto ecosystem.

[TomPluz]

Marketcap is a basic parameter for new investors. Experienced investors will need to learn more aspects: dev team, tokenomics, solutions, partners... In the past, we used to have Bitconnect's BCC in the top #13 but it was only was a ponzi/MLM project and disappeared in early 2018 😭

For sure, many people are relying with CMC to get many information that they are looking for including ranking within the cryptocurrency industry. Actually, one reason why CMC is very popular is that they come in as one of the pioneering platform - right platform at right time with right solutions - but we understand that they are providing the basics at most...and maybe newcomers are just looking for the basics, anyway. Now, advanced crypto people would surely be looking for more and I am sure one can also find these tools in the market today. I am not using any advanced crypto tool all because I still belong to the basic category so I am relying more on CMC and sometimes Coingecko, another similar platform we can also use conveniently. In addition, yes I remember that Bitconnect and in fact I was one of its many members back then though I never lost any money on that as I came out at the right time.

[Jamal Aezaz]

When you ask a beginner about the best cryptocurrency or why you invested in X crypto, will tell you that the reason for investing is that this currency is ranked among the top 100 cryptocurrencies at https://coinmarketcap.com/, and unfortunately what says is often wrong.

Is market capacity a good measure for ranking cryptocurrencies and why?
If it is not a good measure, what is the best measure?

My personal opinion is that it is a measure that is easy to manipulate and therefore cannot be trusted.

It is called Market Capital not capacity. and I think that a fair way of ranking coins. if we don't rank coins by market capital then what other aspects do you want them to be ranked?
the coin with largest market cap means have bitter share in the market.
Market cap can also be different according to the total supply and price.
So the ranking is correct. but people making investment decision based on marketcap can be wrong sometime. investors should consider other aspects when investing not just market cap or coinmarketcap ranking.

[Kibros Kib]

MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one. MarketCap is calculated by multiplying the current price of a coin by the total number of coins in circulation. This means that coins with a large supply or a high price can have a high MarketCap, even if they are not widely used or have low liquidity. MarketCap does not reflect the true value or potential of a cryptocurrency, as it does not account for factors such as adoption, innovation, security, or utility. A better metric to rank cryptocurrencies would be to consider their network effects, their technological features, their governance models, and their social impact. These aspects can provide a more holistic and accurate picture of the crypto ecosystem.

MarketCap is a popular metric to rank cryptocurrencies, but it is not the best one as cryptex. MarketCap only measures the total value of all the coins in circulation, but it does not account for other factors such as liquidity, utility, adoption, innovation, security, and decentralization. A high MarketCap does not necessarily mean a high-quality project, and a low MarketCap does not necessarily mean a low-quality project. There are many examples of overvalued and undervalued cryptocurrencies based on MarketCap alone. Therefore, I think MarketCap is a useful but incomplete indicator of a cryptocurrency’s potential and performance. It should be used in conjunction with other metrics and criteria to evaluate the true worth of a crypto project.

[Dave Marshall]

MarketCap is a popular metric to rank cryptocurrencies, but it is not the only one. It measures the total value of all coins in circulation, but it does not reflect the demand, liquidity, or utility of a crypto project. Some other metrics to consider are trading volume, network activity, and social sentiment.