Does MarketCap a good metric to rank cryptocurrencies?

[Husires]

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.

[0t3p0t]

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

Correct! I consider coinmarketcap as a tool for the tokenomics of a specific crypto I am going to take part with but I am also not relying on it specially about the rankings but of course as a tool majority of crypto enthusiasts use it as a reference for the top coins on the market capitalization. I personally use two coingecko and coinmarketcap for the tokenomics and I don't really care about the rankings as we can see it obviously on the market on what coins does have better performances.

[MrSpasybo]

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.

We will never have one criterion that is best in all aspects or for everyone. Usually we choose a few aspects for reference and evaluation, and market capitalization is the simplest one: it's in $, displayed as numerals, and every token has it.

Basically, capitalization represents the value of the token: if the project is interested by investors and they buy tokens, the token price will increase and capitalization will increase and be in good order on Coinmarketcap. We have a lot of good and bad projects in this market, but usually, the top 100 are projects that have been accepted by the community and are quite safe to invest in. At least they aren't shitcoins that could disappear tonight.

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 😭

[sampoerna]

Yes, the coin market cap ranking is based on certain data. which in fact is based on daily volume, supply, market cap, and other data information. However, whether it is real and 100% reliable, we cannot be sure. because there are several factors. However, the data in CMC is still what we usually use.

[Zed0X]

Isn't market capitalization the only way to quantify a coin/token's valuation? You can't use the type of technology each project uses as a basis since that is subjective. Yes, MC can still be manipulated but that's usually for lower cap altcoins. It's harder to do that on top 50 and below. I remember a chartist once said that he doesn't bother making charts for lower caps.

[Uruhara]

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.

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. So beginners often make the mistake of looking at the MC of a project that is really hype. Even though they will only have high trading volume and Mc during the hype. Once the hype is over the real ranking will be seen. cmc ranking is also a measure of the crypto community's trust in an altcoin project.

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.

[Metha Wulandarin]

Coinmarketcap and Coingecko are just basic data references for us.
What is the basic data?
Like the official website, official social media accounts and contact address (SC).
If you say it's all just manipulation, who has that much money to move the top 100 coins while the MCap of just one coin is how much MCap is on Coinmarketcap and Coingecko it is taken from transaction volume.
Coinmarketcap and Coingecko are only optional suggestions, then you decide which project you want to enter and add your own analysis.

[Charles-Tim]

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.

Another reason is utilities.

Some people will also said people can invest in alcoins like ether and others because they have huge marketcap.

If you noticed, that those high marketcap coins have huge utilities, like bitcoin as an example.

Although, altcoins are gambling. People should know that. Let their prices become low and invest, make money an rush out with profit before they will fall again.

[Fivestar4everMVP]

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.

Sorry but in all you said, you've said nothing actually, or nothing that makes sense to me..
You condemned something calling it bad as it can be easily manipulated, then what are you suggesting is a better option?

I think when someone condemns something, it is his or her responsibility to bring or suggest what they think is a better option, the we the community will look into that which the person condemned, and also look at that which they presented as a better option or alternative, we discus and weigh the two to find out which is actually better in real sense.

It is improper to condemn something, and without proffering or suggesting something else, ask others to tell what is better.

[Dr.Bitcoin_Strange]

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.

I am actually of the same opinion with you OP. In 2019 when I fully got into the crypto space, there were some altcoins that was ranked in the 100 top cryptocurrency but before the end of that year, some of those coins got replaced  by other new coins which became top 100 rank in Market capacity. From my experience right from after I started investment in cryptocurrency, as the year pass by, the market capacity of some altcoins drops and other new coins take their position in ranking.  So, It's not really good metric to use because it can be very deceiving base on the fact that the the price and trading volume can be manipulated.

[ABCbits]

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

Yeah, manipulation is big concern when we use ranking or market cap. Many stablecoin gain high position by convert fiat to their stablecoin. And for really unpopular coin, it's trivial to manipulate exchange rate in order to boost their position or make their coin appear on top rising coin. Even BSV have position #51 on CMC.

[Husires]

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.

It is improper to condemn something, and without proffering or suggesting something else, ask others to tell what is better.

For this reason, I am asking about the best alternative, and is there a best alternative or a group of alternatives?

[Freemind]

I would dare say that a large percentage of CoinmarketCap's top 100 is full of totally useless coins and tokens from my point of view. Many of the coins and tokens on that list are not even real projects, with developments that can be studied and our funds invested. And I'm not just talking about memecoins, I'm talking about projects with a good foundation but that over time have been abandoned by their developers and now they simply wait for the market to push them up. For me CoinmarketCap has never been a serious reference when choosing where to invest, it will always be a showcase for Binance products.

[Husires]

For me CoinmarketCap has never been a serious reference when choosing where to invest, it will always be a showcase for Binance products.

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.

[bitmover]

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.

Marketcap and colume are the best metric around.

Volume is easier to manipulate than marketcap,  as it is hard to manipulate the price. Specially when the marketcap becomes large.

Even stocks are ranked according to their marketcap.