Simplifying Crypto Research

What is ICR Score?

The ICR Scoring Model is a comprehensive tool designed to provide a reliable analysis of the crypto market. It incorporates a wide range of parameters that reflect liquidity, valuation, market activity, adoption, and on-chain value to generate an aggregate score for each cryptos.

Above 70
Cryptos exhibiting more stable fundamentals
55-70
Cryptos with decent fundamentals but with certain elements warranting attention
Below 55
Cryptos that might be grappling with potential challenges or concerns

Our Methodology

We believe in a meticulous approach to evaluating cryptos, ensuring our analysis is thorough and insightful. Here’s a five-step breakdown of our methodology:

Comprehensive Data CollectionSourced data for over 10,000 cryptos, ensuring a broad foundation for analysis
Data Integrity VerificationFiltered out cryptos with incomplete or unreliable data to maintain the credibility of our insights
Functional Crypto CategorisationSegregated cryptos based on their distinct purposes and primary functionalities
Fundamental Scoring DesignEstablished a scoring framework emphasising the four metrics: Liquidity, Valuation, Security, and Adoption
Ongoing Market AnalysisContinuously monitor and update our database to capture the latest market dynamics and crypto developments

Scoring Parameters

Liquidity Analysis
Amihud Liquidity Measure:The model uses the Amihud Liquidity Measure to estimate the liquidity of cryptos. Liquidity is a crucial factor that evaluates how much quantity of a coin can be bought or sold without significantly influencing its price. The Amihud Liquidity Measure is calculated as the inverse of the mean of daily Amihud Ratios over a period of time. The Amihud Ratio, which is inversely proportional to liquidity, is calculated as the daily return divided by the dollar volume. A lower Amihud Ratio indicates higher liquidity, making it easier for investors to buy or sell the cryptos without causing drastic price changes.
Valuation Metrics
Hist NVT Ratio:The Historical Network Value to Transactions (NVT) ratio is used to evaluate whether a cryptos is undervalued or overvalued compared to its historical performance. This ratio compares the market capitalization of the cryptos to its on-chain transaction volume, providing insights into its valuation. A higher value indicates that the cryptos is overvalued, while a lower ratio suggests it is undervalued.
P/F Ratio: Analogous to the Price/Earnings (P/E) ratio used in equities, the P/F ratio assesses the valuation of cryptos based on the fees generated by their underlying protocols or dApps. It is calculated by dividing the circulating market cap of a cryptos by its annualised fees and provides a measure of how much investors are paying for each dollar of fees generated by the cryptos. A lower P/F ratio indicates that a cryptos is undervalued relative to the fees it generates, while a higher ratio suggests it is overvalued.
Market Activity
Total Exchange $ Volume: Total Exchange $ Volume is a key metric for evaluating the liquidity and popularity of a cryptos exchange. It measures the total dollar value of all trades executed on an exchange. A high total exchange $ volume also reflects positively on the native token of the exchange where the trading activity takes place.
Circulating Supply: The circulating supply of a cryptos is considered to understand its liquidity and potential inflationary pressures. A lower circulating supply relative to the total supply indicates scarcity while a higher value suggests that there is ample supply to meet the demand for transactions and trading

Categories

The following categories of cryptos can be identified:

Digital Currencies
These are the most common type of cryptos, which are primarily used as a medium of exchange, store of value, or unit of account. They are designed to work as a decentralised form of digital money, independent of a central authority. Examples include Bitcoin and Litecoin.
Smart Contract Platforms
These cryptos provide a platform for creating smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. They allow developers to build decentralised applications (dApps) on their blockchain. Ethereum is the most well-known example.
DeFi (Decentralised Finance)
These are the most common type of cryptos, which are primarily used as a medium of exchange, store of value, or unit of account. They are designed to work as a decentralised form of digital money, independent of a central authority. Examples include Bitcoin and Litecoin.
Stablecoin
These are cryptos that are designed to minimise the volatility of the price of the stablecoin, relative to some "stable" asset or a basket of assets. They are often pegged to a specific currency, like the US dollar. Tether is a well-known example.
CEX (Centralised Exchange)
A platform where cryptos are bought and sold under the control of a central authority. This authority manages the platform's operations, including the handling of assets and user transactions. Users must trust the exchange with their funds, and the exchange typically requires user identification (KYC) processes.
DEX (Decentralised Exchange)
A platform that enables users to conduct cryptos transactions directly with one another without the need for an intermediary or central authority. Transactions on a DEX are facilitated by smart contracts on a blockchain, offering increased privacy and control over funds. Users maintain possession of their private keys and thus their assets.