Smarx (or S-Dex) -- Version 0.0.2 -- Updated 01/19/16
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:: Crypto Value Index ::
AltDEX was a thing a while ago that used some stock market industry practices to come up
with an index that would evaluate the altcoin market on a day-to-day basis, and this was
a really cool thing. It got taken down because fuck knows and is currently going to be
replaced with C-DEX by Coinsource.com although C-DEX does something totally different
then AltDEX did. They don't currently show the math or means behind the index, and so
the number ascertained by the index is meaningless. This means that currently there is
no trustworthy or advanced market index for cryptocurrency. This is a huge opportunity.
So, I present to you, Raxe members and public viewers, Smarx. title subject to change
Smarx, or S-Dex, will pull stats from Crypto-Currency Market Capitalizations of the top
10, 20, 50, 100, and 150 cryptocurrencies by market cap. The totals of all the market
caps will be added and then a specific coin's market cap will be divided by the total
to provide that coin's "value" in the crypto ecosystem. It's the percent of the total
market cap that that coin takes up. All the cryptocoins's percentages for the default
top 100 caps will then be averaged out again as percents, creating a slightly weighted
value of the total market.
What this is usefull for- Considering that BTC has a market cap of 7.5 billion dollars
right now and the second largest cap held by LTC is only a 224 million dollars, BTC has
a very large percentage of the total amalgamated caps; with BTC in the mix you get a
very small weighted percent that is the Smarx index number. The closer the number is to
100, the more "equally distributed" the crypto ecosystem is, the healthier the altcoins
are, and the more profitable it is to invest in crypto. The further away from 100 the
index is, the more Bitcoin is throttling/dominating the ecosystem, and the less likey
you are to make profit off of altcoins. But this is just the main feature, I'm looking
to implement a lot of other things with this, like turning off bitcoin's percentage so
you can see the health of the crypto markets without BTC weighted in. There should also
be a way to select individual coins and display their weights in the index with and w/o
BTC factored in, so you can see how much of the ecosystem has been taken up by that
specific coin over time. I'm sure you can already think of a few more things we can do
with a market index considering that what I'm proposing still isn't a real market index
like stock indexes are, so there's still a lot of room for developing tools like this.
The first part of this, making an engine that scrapes coinmarketcap.com every five-ish
minutes, should take a day to code. I'm not asking your team to create a seperate
function using a regular expression to parse every individual line of html, this stuff
is real easy, one guy can probably do it in a day. The other stuff I want to do with
will take some more time. Having a flash-based (or something responsive like AJAX)
pie chart or radial graph for viewing the index and interacting with it would make the
index a lot more appealing and easier to use, would draw more api hookers that way.
The graphing thing I'm talking about could look and interact like this. It just needs
to be able to switch between the top 10, 20, 50, 100, and 150 market caps on the fly.
Being able to click on a peice of the pie, on one of the altcoins, and seeing the stats
broken down would be handy.
:: MATHS done on 8/24/14 @ 4:30 pm ::
Rank | Symbol | Price Per | % $Per | Market Cap USD | % Total Mcap | Difference of Totals
1 | BTC | $508.07 | %97.95 | $6,698,052,414 | %94.80702984 | % - 3.14297016
2 | LTC | $ 5.45 | % 1.05 | $ 171,462,068 | % 2.42694568 | % + 1.37694568
3 | BTSX | $ 0.02 | %0.003 | $ 59,005,993 | % 0.83519546 | % + 0.83219546
4 | XRP | $ 0.005 | %0.001 | $ 42,492,641 | % 0.60145858 | % + 0.60045858
5 | NXT | $ 0.02 | %0.003 | $ 29,920,613 | % 0.42350885 | % + 0.42050885
6 | PPC | $ 0.90 | % 0.17 | $ 19,577,890 | % 0.27711363 | % + 0.10711363
7 | DRK | $ 3.08 | % 0.59 | $ 14,137,467 | % 0.20010761 | % - 0.38989239
8 | DOGE | $0.0001 | %0.000 | $ 11,263,908 | % 0.15943406 | % + 0.15943406
9 | NMC | $ 1.13 | % 0.21 | $ 10,901,132 | % 0.15429917 | % - 0.05570083
10 | MAID | $ 0.01 | %0.002 | $ 8,118,111 | % 0.11490713 | % + 0.11290713
Totals | $518.6851 | | $7,064,932,237 | | % + 0.02100001
Total Market Cap Constituted by Altcoins (everything except BTC) = %5.19297017
Average % of Total Market Cap for the top 9 altcoins = %0.5769966856
Multiply by 100 and you get your "Top Ten" AltDEX aka AltDEX-10 = 57.7
"Top Ten" is a misnomer because only 9 are included, but it's of the top ten in Mcap, so w/e.
Total Difference of Totals between MCap % to Price-Per-Coin % = %0.02100001
This number is the relation of the altcoin market's undervaluation to bitcoin's
overvaluation. The less overvalued Bitcoin is from it's Price-Per to it's total Mcap,
the bigger the number you'll get for this difference, similarly if the average altcoin
becomes less undervalued. I am not good with wording this shit so this is the best I
can do lol... This number essentially tells you the "fair health" of crypto markets as
Bitcoin is to Altcoins and versa vice. The higher the number, the healthier altcoins
are doing in relation to Bitcoin, the lower the number, the more Bitcoin is dominating
the crypto ecosystem.
Multiply by 1000 to get your "Top Ten" SDEX aka SDEX10 = 21.0
You can do these evaluations not just for the top 10, but for the top 20, 50, etc.