Top Crypto Content Creator CoinDesk Offers New Crypto-Economics Explorer To Visualize Market Data
When the crypto market first came to form, investors’ immediate response was to analyze Bitcoin’s price over time to see whether a trend is present and if it can be used to predict its price in the future. This has clearly changed considering how large the market has expanded. Price as a factor alone is probably not the best way to go about crypto analyses and this is why CoinDesk has come up with a measuring tool dubbed, “CoinDesk Crypto-Economics Explorer.”
As defined by CoinDesk, the new measuring tool was “designed to offer a more complete picture of the economic activity for crypto assets.” In particular, this respective tool supposedly takes into account the support given by crypto exchanges along with improvements made to a given project’s code and other crucial factors.
Now, instead of looking at prices, market capitalization and volume, the Crypto Economics Explorer supposedly houses 28 factors, which have been shared as being, “related to price, exchange, network effect, developer base and social data.” To ensure that normality holds for the data used, the team at CoinDesk created “the Bitcoin Benchmark,” which gets information from 16 different exchanges – allowing users to compare cryptos against Bitcoin and altcoins.
Further breakdowns on the different existing benchmarks have also been provided under “Crypto-Economics Explorer – Glossary.”
For instance, the factor, “Exchange” looks at: total exchange volume, count of exchanges, total trade pairs, and exchange volumes from fiat to crypto and crypto to crypto.
Another factor dubbed, “Social”, looks at: Reddit Subscribers, Reddit Active Users, Reddit New Posts and Comments, Twitter Followers, Google Search Trends, and Facebook Likes. Other benchmarks include that involving the overall network and developers.
CoinDesk’s new measuring tool appears to be effective, considering the fact that they took into account several known factors to have contributed to a crypto’s price hike or plummet. Their use of the Social benchmark is definitely a smart move, given the fact that sentiment surrounding crypto news has been correlated with price movements.