I just watched the latest episode of the Magical Crypto Friends show and somewhere at the end a website called CoinMarketBook (CMB) gets mentioned. I took a look and found out it is quite interesting. It ranks (and gives statistics of) coins based on the buy support levels instead of the well-known total market capitalisation, like CMC does.
What is 'buy support'? CMB defines it as "the sum of buy orders at 10% distance from highest bid price". So it basically tells you how much real demand (buy orders) there is for a coin is at the price range between the current price and a 10% lower price. That is actually a far more interesting metric that total market capitalisation if you ask me!
Of course, there are ways in which this metric can be manipulated, for instance by spoofing. Also the data might give a skewed view of reality because does not include all exchanges and volume for a lot of coins is low, but when the next bull run arrives this metric might actually be the one I will be looking at before I get into a coin.
The website also shows some very promising other metrics like the 'Bottom indicator'. Take a look ;-)
What are your thoughts on the buy support metric vs. total market capitalisation? Let me know in the comments.
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Disclaimer: I am not a financial advisor, trader or developer. I am just a blockchain & cryptocurrencies enthusiast. Make sure you do your own research, draw your own conclusions and do not invest any money that you cannot afford to lose.