Token Metrics has built a new framework to analyze the cryptocurrency market. In 2021, we launched the TM Grade, which uses machine learning algorithms to rate a coin’s strength based on daily, weekly, and monthly time horizons. Today, we’re proud to build upon this innovation with the release of the new Market page.
The Market page expands upon the TM Grade to give investors an aggregate view of the cryptocurrency market. The page includes eleven new features which provide the data necessary to determine trends, spot tops and bottoms, and find the next big movers. New features include:
- TM Market Indicator
- Total Crypto Market Capitalization
- Bitcoin vs. Altcoin Season
- Annualized Historical Volatility
- Sector Analysis
- Breakout Strategy
- Low-Frequency Trend Strategy
- Bull and Bear Meter
- Top 20 Daily Performers
- Worst 20 Daily Performers
- Market Movers
Given the volatility of crypto markets, successful investors need access to real-time, intelligent tools. By analyzing prices via machine learning, Token Metrics provides a perspective removed from the market’s constant state of frenzy.
TM Market Indicator
The Token Metrics Market Indicator is the fastest and easiest way to determine whether the cryptocurrency market is bullish or bearish. The Market Indicator calculates the ratio of bullish to bearish TM grades. When there are more bullish than bearish TM grades in the top 300 coins by market cap, the indicator will signal green. Conversely, the indicator will signal red when there are more bearish TM grades in the top 300 coins by market cap. The Market Indicator is printed on the total cryptocurrency market cap to provide a simple view of the crypto market’s direction.
Total Crypto Market Capitalization
The above plot tracks the Altcoin and Bitcoin market caps relative to the Total Crypto Market Capitalization. This data informs investors whether it is better to hold Bitcoin or altcoins at a given time. Typically it is better to have altcoins during a bull trend and Bitcoin during a bear trend.
The green and red zones of the Crypto Market Cap indicator identify whether the market is in a bullish or bearish trend. The calculation is determined based on the signal from the TM Market indicator (above).
Bitcoin Vs Altcoin Season
The Bitcoin vs. Altcoin Season indicator builds on the insights derived from the total cryptocurrency market cap. This seasonal indicator determines whether the market’s present conditions benefit altcoin or Bitcoin investments.
Annualized Historical Volatility
Volatility measures the variance of returns over some time (in this case, one year). The Annualized Historical Volatility identifies whether the cryptocurrency market is moving typically by the past year or whether the market’s movement is out of the norm. The Annualized Historical Volatility indicator shows the historical volatility of the total crypto market cap and its estimated volatility range.
Sector Analysis
The Sector Analysis table divides the cryptocurrency market into 10 sectors:
- Infrastructure
- Derivatives
- Meme Tokens
- Layer-1
- Synthetics
- Exchange-based Tokens
- Yield Farming
- DeFi
- NFT
- Entertainment
The Sector Analysis table tracks each sector’s average price change, top gainer, market cap, total market cap dominance, volume, and the percentage gainers vs. losers. Sector data is updated daily, and each sector is additionally given an overall TM Grade. Collectively, this information provides a fundamental view of fund flows in the cryptocurrency market.
Breakout Strategy
The Breakout Strategy compares the percentage of coins trading above or below their monthly highs or lows. In the image above, the Breakout Strategy shows the cryptocurrency market is moving bearishly.
Low-Frequency Trend Strategy
The Low-Frequency Trend Strategy compares the percentage of coins with a bullish or bearish signal from the Token Metrics Low-Frequency Visual Trend Indicator.
Bull And Bear Meter
The Bull and Bear Meter identifies the long-term trend of the cryptocurrency market by comparing the proportion of coins trading above or below their 60-day exponential moving averages. Therefore, the Bull and Bear indicator is best used in conjunction with the TM Market indicator to identify the crypto market’s overall momentum.
Top 20 Daily Performers
The Top 20 Daily Performers identifies the 20 cryptocurrencies with the highest daily returns.
Worst 20 Daily Performers
The Worst 20 Daily Performers identifies the 20 cryptocurrencies with the lowest daily returns.
Market Movers
The Market Movers scatterplot tracks the daily returns of tokens relative to their daily trading volume deviation from the 10-day average trading volume. In other words, it helps identify which coins are surging in terms of trading volume to know the strength behind the daily price move.
Key Takeaways
- By analyzing prices via machine learning, Token Metrics provides a perspective removed from the market’s constant state of frenzy.
- The TM Market page includes eleven new features built to help investors determine trends, spot tops and bottoms, and find the next big movers.
- All of these tools are designed to help crypto investors navigate crypto-asset volatility and further Token Metrics’ mission of financial freedom for all.
