Recently, I scraped nearly one year of market capitalization ranking data for all known coins for 2017. Approximately 1236 coins as of 25 November 2017.

Data was collected into a CSV file, and imported into Google Sheets. A very small sample is shown below.

My hypothesis is such that one could detect a coin which has a trend toward 1. Which means, the coin’s market capitalization is increasing relative to its competitors. My goal is to find the coins which are increasing rapidly, yet are still medium to small market cap and relatively unknown. Finding a coin, which is booming, with enough volatility, could be profitable.

My technique consisted of:

  1. Collect ranking data, for year to date.
  2. Calculate SLOPE using Google’s =slope() function.
    1. Assumption is that all rankings are positive numbers.
    2. Assumption, the goal is to reach rank #1.
    3. A negative slope indicates a tendency toward 1 – considered good.
    4. A positive slope indicates a tendency away from 1 – considered bad.
  3. For chart #1, limit to the top 50 currently ranked coins.
    1. Coins with ONLY negative slopes only — all others pruned.
  4. For chart #2, limit to the top 51-150 currently ranked coins.
    1. Coins with ONLY negative slopes only — all others pruned.
    2. As of this time, 150th coin has a market capitalization of $32,310,202.
  5. Additional filtering applied to remove odd spikes.
    1. Calculated median of rank series.
    2. Filtered out any values above 10% of median.
  6. Chart RANK: Current rank.
  7. Chart SLOPE: angle of attack toward RANK #1.

Chart 1 – Movers Within the Top 50

Analysis:

The coins with the greatest slope are moving up the rankings the fastest, and most aggressively.

ARK, Vertcoin, MonaCoin and NEO are the biggest movers. Below Populous, the coins rapidly decrease in movement.

It is interesting to see that the top 50 coins move much slower as compared to the next 100 coins shown below.

Chart 2 – Movers Within the top 51-150

Analysis:

A popular coin Grid+ is BOOMING, probably because of the success of PowerLedger. LEOcoin and below rapidly drop off and lose momentum.

Chart 3

Analysis:

Comparing global rankings to their respective slopes shows some interesting trends. Coins to the left of 0, are in a downward trend in their market capitalization. They are losing money and moving away from rank #1. Those lucky coins to the right of 0 are gaining ground toward #1. We shall ONLY focus on these coins.

Only 161 coins are equal to or to the right of 0, racing toward rank #1.

1075 coins on the left of zero are on the downward spiral in rankings.

The yellow box, is my opinion on the Goldilock zone. This is the region where the best coins to invest in could exit. These coins market have a capitalization high enough (several millions of dollars) to survive, and their slope is high, without being a bizarre outlier. A less riskier position would be to stay below a rank of 150, with a slope no greater than -50.

  1. Coins from -1 to -50 are a low risk, and potentially moderate reward.
  2. Coins from -51 to -100 are higher risk, but are on a good boom, and could net some good rewards.
  3. Coins from -101 to -200 are oddities and probably should be ignored for investment, but could be good indicators for pumps. Watch these for their relative movement to detect whether they are pumping or dumping.
  4. Super sloped coins reaching past -200 are probably on a popularity pump, and could offer some quick gains.

As always, do your own due diligence and always consult with a licensed financial advisor before making any investments. Only invest money, which you are willing to lose.