The Sandbox vs Aave

Market capitalization in cryptocurrencies is the total value of all coins that have been created and are in circulation. Market capitalization is calculated by multiplying the number of coins in circulation by the current market price of a single coin.

The all-time high refers to the highest price a cryptocurrency has ever reached. It marks the point at which the cryptocurrency’s value hit its previous peak, based on available historical data. For many, this high is an important data point as it helps better assess the current price and market potential of the coin.

This metric shows the lowest price a cryptocurrency has reached since its last all-time high. It helps to understand how far the price has fallen during the most recent major market correction, which can be crucial for risk assessment. It also illustrates how much the current price has recovered from the last significant low point.

Momentum measures the current market dynamics of a cryptocurrency. The value is based on technical indicators such as the Relative Strength Index (RSI), the Fear & Greed Index, and the short-term price trend over the past 30 days. Positive values indicate upward momentum, negative values indicate downward momentum. This indicator is for informational purposes only and does not constitute investment advice.

The Relative Strength Index (RSI, last 14 days) is a popular financial indicator ranging from 0 to 100. It signals whether an asset is overvalued or overbought (above 70) or undervalued or oversold (below 30). Values between 30 and 70 indicate that the asset is fairly or neutrally valued. A low RSI below 30 can signal a potential buying opportunity due to undervaluation. RSI and other indicators should never be used as the sole basis for investment decisions.

The price trend is an indicator that analyzes the short-term price movement (last 30 trading days) of a cryptocurrency to understand its market dynamics. For each day, it is assessed whether the price increased (referred to as a “positive” or “green” day) or decreased (known as a “negative” or “red” day) compared to the previous day. A predominance of green days over this period suggests an upward trend that may continue in the short to medium term.

The price development, often referred to as Return on Investment (ROI), is a metric that provides insight into the profitability and performance of an investment in the past. In this context, ROI describes the percentage change in price and thus retrospectively the “return” of a cryptocurrency over a defined period.

The total return of a cryptocurrency is the overall price performance from its trading start until today. Please note that total return can vary due to differences in trading start dates, measurement periods, and price sources across various exchanges or platforms. Therefore, this metric is not always precisely determinable and should be interpreted with caution.

The average annual return indicates the average percentage change in price over the past years since trading began. Please always keep in mind that historical returns are neither a guarantee nor an indicator of future profits or returns. This data is provided for informational purposes only and does not constitute investment advice or recommendations.

The trading volume describes the total reported trading value of a cryptocurrency on the largest exchanges within the last 24 hours.

The maximum number of cryptocurrencies that can ever be issued. This value is usually irrevocably defined and embedded in the protocol code of a blockchain.

Inflation in cryptocurrencies refers to the increase in the total circulating supply of coins or tokens. A high annual inflation rate can have a negative impact because it dilutes the value of existing units. With each newly created coin or token, the relative share—and potentially the value—of existing coins or tokens decreases. Important: Cryptocurrency inflation differs from traditional fiat inflation, which primarily describes the loss of purchasing power of money over time.

Total Value Locked (TVL) is an important metric in Decentralized Finance (DeFi) that represents the total value of assets locked in a blockchain or DeFi protocol, such as smart contracts and tokens (staking). TVL is commonly used to evaluate blockchain networks. Data source: defillama.com

The ratio of market capitalization to TVL (Total Value Locked: the sum of assets “locked” in the blockchain, e.g. smart contracts and tokens). This ratio compares the public market valuation with actual usage (assets locked in the blockchain) and can indicate over- or undervaluation of a blockchain and its cryptocurrency. The lower this ratio, the better.

This metric indicates the average number of daily blockchain transactions over the past 3 months. It helps measure the activity level and usage of a cryptocurrency and its blockchain network. Data source: Santiment.net

Active addresses (24h) are the number of unique addresses that sent or received a transaction in a rolling 24-hour window, counted once per address. It’s a useful proxy for network activity and engagement, but addresses ≠ users (one person or an exchange can control many). Source: Santiment.net

The overall rating is calculated as the average of our individual scores. Our ratings do not constitute investment advice but merely reflect our personal opinion. You are welcome to use them as rough indicators and additional perspectives. In the dynamic and rapidly evolving crypto space, parameters can change frequently from one day to the next; therefore, we cannot guarantee the accuracy of the rating data. Please never use our ratings as the sole basis for decision-making or as a substitute for your own research.

Most cryptocurrencies are open source. This means, among other things, that the entire source code of all components of the network is publicly accessible (usually on GitHub). Additionally, anyone can theoretically contribute to the project, propose changes, and point out bugs or security vulnerabilities.

The sector describes the category or thematic field in which a cryptocurrency operates.

A key feature is a specific and distinctive characteristic or unique aspect of the cryptocurrency or project.

Some cryptocurrencies are based on their own developed, “native” blockchain and are therefore called “coins.” “Tokens” refer to projects that use an existing blockchain (e.g., Ethereum) and build upon its network and security mechanisms.

Staking allows you to earn interest by “locking up” a certain amount of cryptocurrency for a defined period. The interest is generated through the consensus algorithm (e.g., Proof of Stake) used to validate and secure the network.

A consensus algorithm, often also called a consensus mechanism, is an algorithm that enables agreement (consensus) among network participants on the current state of a blockchain network. For example, it can establish agreement within the network about who executed which transaction or who owns how many coins.

Energy consumption describes the “sustainability” of a cryptocurrency, specifically the underlying consensus algorithm of the blockchain. The value is measured in kilowatt-hours (kWh) per transaction. However, it cannot yet be precisely quantified. Therefore, we categorize energy consumption as “low,” “medium,” or “high.”

Transactions per second (TPS) describe the transaction throughput, i.e., the number of transactions a blockchain network can process within one second. The TPS metric is often used to assess the scalability of cryptocurrencies or blockchains.

A whitepaper is a typically detailed document written by developers to define and describe the technology (e.g., algorithms) and goals of a cryptocurrency and its network. Whitepapers are often complex to read and contain many mathematical formulas, statistics, and diagrams.