Market Capitalization is an irrelevant metric - this other metrics are worth paying attention to

Market Capitalization Is Not A Tell Of True Value

The easiest way to explain market caps is to reference them as value put in, not the extractable sum. The reason for this is the nature of assets, which are by design subject to influence by many factors, and values change over time, turning a profit or loss on one's investment. Now, I know that the majority will argue the importance of this metric. Yes, it helps one have an overview for those that can't simply do the math of supply × current price of a given asset. Besides this, it's just one of the many over-represented data sets.

Plugging in the business environment of the real world, typically when one needs to represent the value of a business, they look at past revenues excluding what actually draws in this revenue - the customers/users.

Userbase - Overview Of Project Growths

What makes any business valuable is its userbase, even though we have other factors in-between that affect value flow like the spending habits and financial status of the said users, that's all just details the marketing team should worry about as all efforts pushed through advertising should be projected to attract the right audience.

Having said that, users and usage statistics play an important role and is ultimately the perfect #1 metric to look out for.

Recently, bitcoin addresses holding 1 BTC hit over a million, at 900k, this was reported on icoverage. We see how this isn't just about the value of these coins but more about the adoption overview, detailing industry faith in decentralized digital assets - cryptocurrencies.

Additionally, usage stats are a point in the right direction, but of course, when dealing with cryptocurrency and blockchain technology we try to narrow down this data to distinguish between humans, bots and single party managed multiple accounts. However, drawing data on bitcoin usage, we see an averageof over 200k daily transactions in spite of market turmoil since the beginning of 2022.

This is however where we find bitcoin to be behind the other projects as the era of smart contracts blockchains like the Ethereum blockchain has given them a major advantage in usage and network utility. However, the fact that Bitcoin leads as the most decentralized cryptocurrency facilitating on-chain transactions without third party involvement, a process called peer-to-peer makes it a marketable network.

Speaking of network usage

Developments and Project Advancement

ADA happens to top most smart contracts blockchains Polkadot, Ethereum, Cosmos and Internet Computer (ICP) as the most developed atop blockchain.

Looking at the development overview of projects helps sharpen the appearance of these platforms in the future. As with every or most investment decisions which are influenced by speculations of the future value of companies, looking at developments helps put things in shape.

At the time however, according to dapp.com, Ethereum leads as the most utilized blockchain in terms of applications built, nonetheless, Cardano seems to be closely behind according to sources.

Cryptocurrency and blockchain technology has embraced great growth over the years, and while one could get lost in all the drama, it is always crucial to reflect back on matrices that help shape our ideas on the future of permissionless networks and all its associated products.

^{Nothing contained in this article should be taken as financial advice - all comments are most appreciated}

Posted Using LeoFinance ^Beta