In the cryptocurrency industry, as in the traditional finance market, day-to-day analytics are heavily reliant on data. Since cryptocurrency is becoming mainstream, there is a need to gain a better understanding of this nascent sector.
Digital currencies are also becoming increasingly important to the fintech industry. In some ways, the integration of the two sectors will depend on how well data from both sectors is used.
Platforms that aggregate data from the cryptocurrency markets are becoming increasingly important as a source of information on the movement of prices, the state of the market, exchange trading volumes, market capitalization of assets, listed coins, and trading pairs.
In tandem with the growth of the cryptocurrency industry, market analytics platforms are adding new metrics and refining existing ones. In this article, we will provide a detailed review of two of the leading cryptocurrency market analytics platforms; CoinMarketCap and CoinGecko.
CoinMarketCap is the world’s leading cryptocurrency market aggregate and price tracking platform. In order to help retailers make informed decisions, the company’s main objective is to provide them with the right, unbiased, accurate, and high-quality information. Thousands of coins and tokens are listed on the platform, and users can track prices, profits, and losses.
Crypto assets are compared on CoinMarketCap, a site founded in 2013 that has quickly become the world’s leading source of information for users, companies, and the media.
Binance Capital Management acquired CoinMarketCap in April 2020. Based on trading volume, number of users, and listed cryptocurrencies, Binance is the world’s top cryptocurrency exchange.
CoinGecko tracks price, volume, social, and developer statistics for cryptocurrency. In 2014, Bobby Ong and TM Lee launched a platform that offers cryptocurrency research in partnership with Humboldt University in Berlin and Western University in Canada.
The company generates $3 million in revenue annually and tracks more than 3,587 tokens across 259 cryptocurrency exchanges.
According to SimilarWeb data, CoinMarketCap (CMC) had 37 million web visitors as of February 2021, while CoinGecko had 8.33 million. Data indicates that both platforms are growing in terms of monthly traffic, although CMC is growing much faster than CoinGecko.
With Binance’s acquisition, CoinMarketCap gained access to an already established online audience, which should further boost its traffic. Due to Binance’s strong financial resources, CoinMarketCap is also expected to benefit from improved development.
App usage and online ranking are around the same for the two platforms’ mobile apps. In part, this is due to the fact that CMC’s app was launched a year after CoinGecko’s.
Crypto-Asset Ratings #
Using filters, CoinGecko allows users to sort assets according to different criteria. Moreover, the platform displays the ticker and the price dynamics of various assets over various timeframes, including the last hour, 24 hours, a week, and 30 days. Additionally, users can access the total supply volume.
In contrast, CoinMarketCap’s main interface shows prices only for a 24-hour period and does not provide as much detail. However, users have access to other metrics on a separate list.
The Exchange Score: Volume and Liquidity #
Many price-tracking platforms have attempted to present real trading volumes of different assets, but the problem still persists with discrepancies in the data displayed across platforms.
CoinMarketCap solves this issue by ranking and scoring exchanges based on traffic, liquidity, trading volumes, and confidence in the legitimacy of trading volumes reported. Highly-ranked exchanges will have markets that score well across Liquidity Scores, Volume, and Web Traffic Factor and have high Confidence scores.
CoinGecko provides an in-depth analysis of the crypto market #
Besides measuring and tracking tokens and coins by their market size and cryptocurrency exchanges by their trading volume, CoinGecko also tracks indicators such as community growth, open source code development, and the project’s code progress.
CoinGecko began as an aggregator of crypto data tracking metrics for developers. The platform tracks developers like Gitlab, Bitbucket, and Github, as well as communities like Facebook likes, Twitter followers, new posts, and comments, and Reddit subscribers. Keeping track of developer and community stats is meant to provide a comprehensive view of any cryptocurrency.
CoinGecko’s Trust Score for ranking cryptocurrency exchanges #
Trading volume cannot be used to measure liquidity in the cryptocurrency market due to massive data manipulation. The CoinGecko team recently launched a new feature called “Trust Score” that sorts exchanges based on their Trust Score rather than the total 24-hour reported trading volume.
On May 13, 2019, Trust Score combined web traffic and order book analysis with normalized exchange volume. Based on Bitwise 10 real-volume exchanges and SimilarWeb traffic analysis, CoinGecko calculates users’ trading volume from their real-volume exchanges.
Additionally, the platform measures the spread between bids and offers and the capital needed to move the order book by 2%. It does so to analyze the order book in depth.
Combined with other metrics, the Trust Score offers a more comprehensive view of the real liquidity of any trading pair on any exchange. Additionally, CoinGecko offers metrics such as hot and cold wallet analysis, trade history analysis, crowd-sourced reviews, cybersecurity analysis, social media data, and API quality assessment.
Track ICO details #
Users of CoinGecko can track details on upcoming ICOs, compare them, and make investment decisions. You can access these ICOs by clicking on “Coins” where the platform has listed over 2000 coins and tokens with their market cap, 24-hour price change, percentage score for community support, percentage score for developer activity, and percentage score for public interest.
CoinGecko Features #
Below is a summary of CoinGecko’s distinctive features;
- CoinGecko Website; CoinGecko has a website that shows a detailed list of all cryptocurrencies. As well as the list, the website displays a graph showing each crypto’s trading data over the last week.
- CoinGecko Mobile App; CoinGecko offers both an Android and iPhone app for tracking prices and portfolios.
- CoinGecko API; CoinGecko provides a free API for integrating into websites and blogs.
- CoinGecko Beam; this feature was launched in November 2018 and is mainly intended to improve user trust and transparency. In addition, users can follow the development of various projects through it.
- CoinGecko Earn combines lending requirements from different lending platforms and combines working circumstances into one platform. It was launched in March 2020. Among them are safety audit reviews, profitability requirements, and threat assessments of various platforms.
A reliable source of information in an unregulated industry #
CoinGecko publishes quarterly reports to highlight the state of the cryptocurrency industry as a one-stop source of cryptocurrency data and news. Additional insights, trends, and challenges related to cryptocurrencies are provided in these reports.
We aim to remove the uncertainty that has gripped cryptocurrency markets and enable investors to make informed, data-backed decisions.
Summary of CoinMarketCap features #
CoinMarketCap’s primary objective is to provide accurate, up-to-date, and unbiased data on digital currencies. The platform offers different types of data, including the market capitalization, changes in the exchange rate over the past 24 hours and 7 days, as well as volume and supply.
CoinMarketCap also offers other types of data like its peer Coingecko, primarily for users to become more knowledgeable of the crypto industry and keep up with current affairs.
Advantages of CoinMarketCap compared to CoinGecko #
In short, the advantages of CoinMarketCap are:
- It offers a large selection of cryptocurrencies to choose from. It is a trustworthy source of information about cryptocurrencies.
- Data is presented in real-time. Users can use filters and other personalization tools to get better results.
- Additional analytical tools are available on the platform. With the accompanying mobile phone version, it can be accessed wherever you are.
- Using the platform does not incur any costs.
As the cryptocurrency market continues to grow, data and information will be important for disseminating knowledge about the nascent industry. Cryptocurrencies need to become mainstream as soon as possible. CoinMarketCap and Coingecko may be the pioneers of crypto price and portfolio tracking, but they aren’t the only ones.