When are the daily closes for the data in the Charts, the API, and the Data Downloads?
The daily close is 00:00 UTC, which equivalent to 7 pm Eastern Time. Please note that the data refreshes 7 hours after the daily close, so the prior day’s data will be listed on the site at about 2 am Eastern Time, or 7 am UTC.
Your data for [x asset] isn’t up-to-date. What’s going on?
Some of these nodes are unstable, crash, or need to be resynced due to hard forks or other chain events. You can monitor our node uptime at status.coinmetrics.io.
What are your asset listing criteria?
We list assets according to their suitability based on the four below criteria, in descending order of importance:
- How technically difficult it is to include the asset on our platform;
- How much demand there is for the asset listing;
- The size (in economic terms) of the asset; and
- Our available development resources.
An asset that meets the first three criteria may still not be listed if we don’t have the resources to spare. That’s changing though! We will be onboarding a significant number of assets and public blockchains soon.
Will you accept payment to list a cryptoasset?
We are strictly committed to neutrality, and feel strongly that if we were to accept payments for listings, that would compromise our neutrality. We are trusted by thousands to provide useful data on a best effort basis (we understand that our data may not be perfect, but we do our best to ensure its integrity). Thus we have a strict no-compensation policy for listings, and we try not to exercise too much favoritism. We calibrate our attention to the assets in the sample based on data richness, economic significance, and user interest.
Why ‘network value’ and not ‘market cap’?
We feel that ‘market cap’ misleadingly confers on these assets an undeserved veneer of legitimacy; ultimately, due to issues with float, supply, and liquidity, measures like ‘market cap’ which derive from the highly-regulated world of equities seem misplaced. Cryptoassets deserve to be appraised on their own merits, hence industry-specific jargon like ‘network value’.
What is NVT?
It stands for Network Value to Transactions ratio. It divides the outstanding market value of a cryptoasset by the value of daily transactions on that same network.
Do estimation difficulties render your NVT numbers useless?
We don’t think so. We’ve run tests and the difference between our “naive” transaction volume figures and blockchain.info’s estimates, and they’re consistent across time. That means our NVT chart looks the same as others’, even though the numbers in the denominator are different. We also introduced ‘adjusted transaction volume’ for this reason. More on the caveats here.
What is NVT good for?
Even though the transaction figures aren’t perfect, you can use it to compare different cryptocurrencies (compare NEM and Litecoin, for instance), or use it to look at the valuation of a cryptocurrency like Bitcoin over time (look at Bitcoin’s NVT in the bubble of 2014 compared to its NVT now). Time-series and cross-sectional comparisons are meaningful. More on that here.
Is on-chain volume really a good proxy for the utility of a cryptocurrency?
We’re actually not sure. It is most relevant for a cryptocurrency adopted as a Means of Exchange (MoE). If Bitcoin, for example, were to become a pure Store of Value (SoV) asset, with relatively little turnover and little economic activity, on-chain volume would become less relevant. In fact, if you believe that high velocity has a price-suppressing quality, you might imagine that lots of on-chain volume wouldn’t necessarily have a positive effect on price. Additionally, estimation difficulties between UTXO and account-based chains mean that our on-chain volume figures are not directly comparable at present.
Who came up with NVT?
The first person to publicly propose it, as far as we’re aware, was Willy Woo in 2016.
What are Realized Cap and the MVRV ratio?
Realized Capitalization is a measure devised by Coinmetrics researchers to weight cryptocurrencies by price according to the last movement of each individual unit. The motivation was to create a “churn-adjusted” market cap. Units that have moved recently are priced at the current market price, and units that haven’t moved in years are priced at those older values. This reduces the contemporary valuation impact of long-lost coins in Bitcoin, for example. Additionally, Realized Cap doesn’t count unclaimed supply for new forks. This reduces the ability of forks to inherit network value from the parent chain while in practice maintaining a minuscule float.
The MVRV ratio is simply the ratio of market cap (“market value”) to realized cap (“realized value”). It was first discussed by Murad Mahmudov and David Puell here.
How do you find your data?
We run an array of dozens of full nodes; we also ingest other data from exchanges and miscellaneous related data sources. Unless otherwise noted, our on-chain data derives from full nodes which we run directly. At present, we run 28 distinct base layer blockchain nodes, some of which are multiply redundant.
Are you open-source?
Yes, you can find our github here. We encourage anyone to play with our tools and innovate on them.
Do you make money from Coinmetrics?
You’ll notice that there are no ads on our website and we do not charge for data. Previously we accepted donations to cover our costs. We’re moving to a freemium model now; don’t worry, all of the data you love will remain free. We undertake commercial relationships with enterprise clients and redistributors which support the operation.
Should I use Coinmetrics to make investment decisions?
We are not investment advisers – we are a data service. Nothing on here is intended as investment advice. Consult a registered investment professional and do your own research.
Do you have a position on the scaling debate, Bitcoin forks, the best stablecoin, or whether any cryptocurrencies are worth investing in or not?
We have private positions, but we are interested in presenting the data as neutrally as possible without bias. We make careful attempts not to take a side on any sensitive issues, even though that might upset some of our readers. We are interested in providing accurate data which gives users an insight into the popularity of these assets.
What are the favorite cryptocurrencies among the Coinmetrics team?
The CM team is very intellectually diverse, and quite split as far as favorites goes.
Why are you only covering [x number] of assets right now? What about the rest of them?
Due to time constraints and the significant costs and logistical issues involved with running multiple full nodes, we decided to start with the most major cryptocurrencies. We are gradually adding support for more as time goes on. Since tokens may have different valuation methodologies, and we’re mostly looking at comparables, we wanted to pick a sample of cryptocurrencies for now.
What are your listing criteria for Useful Resources?
We try and keep it limited to services, tools, or resources that we have actually used. However, if you think we might find value in your tool, blog, or website, there’s no harm in DMing us, and we will evaluate it.
What can I do with the data?
Anything you like, we haven’t licensed it (currently). If you are using it in a commercial service we’d like you to ask us first. If you use it in a public piece of research please credit us!
How do I get in touch with you?
For casual inquiries, DM the @coinmetrics twitter account. For career opportunities, contact hr (at) coinmetrics (dot) io.