About Altcoin Analyst
We provide high quality and easy-to-understand research on cryptocurrencies.
About Altcoin Analyst
In 2008, the Bitcoin whitepaper emerged, introducing the world to a transformative new technology: a digital currency that operates on a decentralised, trustless and peer-to-peer network known as the “blockchain” – a relatively unfamiliar term at the time.
Since then, interest in blockchain technology and its potential use cases has surged. As of January 2024, CoinMarketCap lists over 2 million cryptocurrencies with a combined market capitalisation of over 1.7 trillion dollars.
This field has captivated entrepreneurs, developers and investors alike, all eager to leverage blockchain’s potential. Several new projects aim to disrupt or create new industries, while others want to solve some of the world’s most complex challenges. Some coins, such as meme coins, have no practical use cases and limited value, and are created as a joke or a scam.
New blockchain and cryptocurrency projects are launched every day by entities with varying technical experience, funding, corporate structures, tokenomics and tech stacks. The number of new projects and the potential of blockchain technology has seen this asset class raise billions of dollars from institutional and individual investors alike.
However, despite the blockchain’s open source, transparent nature, and the availability of data, it’s difficult to access important information about even the most popular cryptocurrencies.
Most blockchains share their code freely, displaying all their transactions online and making every aspect of their business visible to the public. However, retrieving this information can be difficult and time-consuming, with data being held in complex databases, hidden in whitepapers and published across several sources.
These factors make it difficult for the average person to access the data they need to make an informed decision about a cryptocurrency.
Why We Created Altcoin Analyst
We created Altcoin Analyst to give people access to this data.
We run analysis on cryptocurrencies and share our findings in easy-to-understand reports. We are enabling you to do your own research (DYOR) in minutes instead of days.
We’re just starting out, but we will eventually deliver high-quality, actionable analysis on hundreds of cryptocurrencies. We want to provide our customers with information and empower them to learn about this new asset class, while saving them time in the process.
Our goal is to release a new study every fortnight. We will cover a variety of projects and deliver unbiased, timely information, helping you to understand which projects align most closely with your cryptocurrency objectives.
For information on how we analyse cryptocurrencies, keep reading.
Our Philosophy
We look at the long-term prospects of cryptocurrencies, studying them in the way that you might analyse a publicly listed company. We conduct fundamental analysis by looking closely at the sector that a project operates in and the narrative behind it. We’ll also examine their tokenomics, tech stack and any major competitors.
Our analysis tries to determine whether a cryptocurrency will still exist in ten years and how much potential it has to increase in value. We don't spend much time looking at charts or other technical indicators because it's impossible to use technical analysis to predict the value of an asset years into the future.
By examining the fundamental elements of a cryptocurrency, we can identify strong coins and projects and consider the likelihood of them executing on their vision and succeeding in the long-term.
To perform our analysis, we use a variety of data sources, including (but not limited to) querying the databases of the cryptocurrency and the blockchain it operates on, and examining developer activity, protocol usage and value locked. We also leverage other third-party sources to get a 360-degree view, and once we have all the information, we summarise everything in a report that you can read in less than 10 minutes.
What Do We Look At When Analysing Cryptocurrencies?
Each study is different, but we study the following categories across all cryptocurrencies to better understand their long-term value.
The Overall Project
Purpose/Objectives:
We study the reason the coin was created, referred to as “the narrative”, as well as the problem it is trying to solve, the various needs it addresses and the total addressable market.
Who is Leading the Project?:
We analyse the the team working on the project and publically share their professional history because a team with strong experience and technical ability hints at a project’s ability to execute its vision.
Launch Date & Initial Investors:
We look at the project’s launch date and any initial investors to see if the project has the financial resources to realise its vision. It’s a good sign if large venture capitalists (VCs) are willing to invest early on, and some VCs will also offer technical support and mentorship to a project.
Project Utility
Usage (Transactions & Addresses):
Projects with growing user bases, even small ones, perform better over the long-term. There are many ways to measure this, depending on the technology, although we often use transactions and addresses as a proxy.
Revenue:
The same way you would measure revenue in a listed company, measuring a cryptocurrency’s revenue can provide an indication of a project’s potential and profitability.
Who is Using It / Who Will Use It?:
We do this to get an idea of the total addressable market. We estimate the potential number of paying customers or the industry’s size.
Developer Activity:
Developer activity gives a strong idea about the amount of activity happening around a project. A project with low or declining developer activity usually demonstrates declining interest, and projects need people working on them to deploy new products and updates.
Competitor Analysis:
Several projects often have similar objectives but different strategies, tech stacks, and teams. We will run a competitive analysis on every cryptocurrency we study, as if it were a listed company.
Buying and Holding
Staking Rewards:
Some cryptocurrencies can be staked, meaning you can deposit the coins in a wallet and earn interest (passive income) on them. The terms, conditions and rates vary depending on the coin, but we look into everything on your behalf.
Exchange Availability:
A coin on all major exchanges will have high liquidity and is relatively easy to buy and sell whereas a coin listed on only a few exchanges may have lower liquidity. However, if the coin is likely to get listed on more exchanges in the future, the buying pressure will increase, and push up the price.
Whales:
Understanding how many “whales” (wallets holding a significant percentage of available coins) hold a cryptocurrency is essential. If a project has a small number of whales and they decide to sell their holdings, the price could crash. Conversely, if the whales are actively buying the coin, it could be an early indicator that the price will rise.
Tokenonomics:
Tokenomics refers to the number of coins currently in circulation, the number expected to be released (unlocked), and the release schedule. Coins with upcoming unlocks will see an increase to the supply, which could impact the prices due to the law of supply and demand. Some cryptocurrencies try to limit this effect by destroying coins (a process known as burning).
Security / Vulnerability History:
It’s important to avoid coins that are susceptible to hacking/theft. To do this, we check the history of various coins to understand if there have been any attacks, what happened, and what the team did to solve the issue. We also look at the security processes projects have in place to discover vulnerabilities and prevent attacks.
Roadmap:
Like any digital product, we want to ensure that the developers working on a project have updates, new features and security enhancements in their plans. A project without a roadmap will quickly become technologically obsolete.
Interest in the Project
Interest Among the Crypto Community:
We want to ensure that coins have some element of popularity within the crypto community; many people discussing the project online (especially influencers) will typically lead to buying speculation.
Social Media Presence:
We use social media presence as a proxy for interest by comparing a project’s follower base to its competitors and coins with a similar market cap.
YouTube Influencers:
Several influencers, some with over a hundred thousand subscribers, review coins on YouTube and share their recommendations. These reviews can impact the price of small to mid-market cap cryptocurrencies.
Disclaimer
The information provided on this website is intended for informational purposes only. We strive to present accurate and reliable information, but it should not be construed as financial advice. We are not financial advisors, and nothing on this website should be considered as such.
Our research content reflects our unbiased opinion based on available data and analysis. However, we cannot guarantee any specific outcomes or results.
Trading cryptocurrencies involves significant risk, and individuals should conduct their own research and seek professional advice before making any financial decisions.
By using this website, you acknowledge and agree that you are solely responsible for any actions you take based on the information provided herein.