Today we are introducing world's first cryptocurrency market index - SHUFFLUP Crypto Market Sentiment Index or simply SCMSI.
The preface: The traditional stock market has Dow Jones Index to monitor the market health but we noticed that our own crypto world doesn't have something like that. People generally use Bitcoin's price as market health indicator, whereas more than 50% market is dominated by altcoins. Hence we have developed a market index which takes into account the top 100 coins(based on market capitalization) and gives index points which indicates the market health.
The execution: We have used price-weighted method, the same method that is used to calculate Dow Jones Index. The divisor gets adjusted whenever a member(or constituent) i.e a coin or a token gets changed in the top 100 coins list. It means simply because a new constituent is getting added, this should not justify high value variations in the index. Hence just before the new constituent is introduced, a new “calculated” divisor value should be introduced and we just did that. This is very important because the list of top 100 coins keeps changing very frequently so our algorithm should be self-adjusting.
The value of the index is calculated every 5 minutes and always done so taking into account the realtime top 100 highest marketCap coins.
The Funfact: Today we got featured in Product Hunt as well and from now on you don't have to follow every coins' price changes to judge whether the overall market is bullish or bearish, rather just follow SCMS Index. Any feedbacks/suggestions would be highly appreciated and always welcome.
Hi,
We get the price data and ranking of different coins from the CoinMarketCap Public API. This data is used to calculate the Crypto Market Sentiment Index.
Other than this, we also have two other products - Arbitrage Tracker and Volatility Tracker. For those two tools we integrated APIs of more than 100 exchanges.
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[ 3.2 ms ] story [ 20.1 ms ] threadThe preface: The traditional stock market has Dow Jones Index to monitor the market health but we noticed that our own crypto world doesn't have something like that. People generally use Bitcoin's price as market health indicator, whereas more than 50% market is dominated by altcoins. Hence we have developed a market index which takes into account the top 100 coins(based on market capitalization) and gives index points which indicates the market health.
The execution: We have used price-weighted method, the same method that is used to calculate Dow Jones Index. The divisor gets adjusted whenever a member(or constituent) i.e a coin or a token gets changed in the top 100 coins list. It means simply because a new constituent is getting added, this should not justify high value variations in the index. Hence just before the new constituent is introduced, a new “calculated” divisor value should be introduced and we just did that. This is very important because the list of top 100 coins keeps changing very frequently so our algorithm should be self-adjusting.
The value of the index is calculated every 5 minutes and always done so taking into account the realtime top 100 highest marketCap coins.
The Funfact: Today we got featured in Product Hunt as well and from now on you don't have to follow every coins' price changes to judge whether the overall market is bullish or bearish, rather just follow SCMS Index. Any feedbacks/suggestions would be highly appreciated and always welcome.