Over the past decade, cryptocurrency users have used a number of coin market cap aggregators to check the price of a crypto asset and the overall market valuation of the project. However, there are also a number of crypto price aggregators that use a different method of capturing market caps as opposed to multiplying the supply by the price of each unit. The web portal coinfairvalue.com tries to measure the fair values based on the current use of each coin and without implicit speculations.
Coinfairvalue.com is very different from traditional market capitalization aggregators
Crypto price aggregators measure the spot rate of each crypto asset and multiply this number by the amount in circulation of each digital currency. Then an aggregator like our web portal markets, Bitcoin.com, lists each crypto market capitalization in order from largest valuation to lowest. There are also market capitalization aggregators that measure cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) against the world’s leading assets like stocks like Apple and Amazon. Currently, according to data from Assetdash.com, BTC is the tenth largest asset in the world, just below the shares of Alibaba Group Holding (BABA).
Fair value and market value are not the same.
Two years ago, in the summer of 2018, news.Bitcoin.com reported about a different type of crypto price aggregator that uses what is known as “fair value”. The fair value is a broad measure and does not correspond to the market value. Often used in accounting, the metric can be used to measure an asset or the real value of a company. Estimates of the fair value can often be found in a company’s quarterly financial statements alongside the market valuation. The aggregator coinfairvalue.com used the methodology of the “currencies at fair value” model published by @pablompa in 2017.
“One of the most interesting parts of the currency value model is that it comes to the rational conclusion that currencies must be traded at fair value when the number of speculative trades in that currency is negligible even relative to the total number of trades that are in the same currency how a tool can be carried out, ”explains the web portal.
The website adds:
Calculating an accurate fair value for one currency in relation to another currency can be tedious if done rigorously. The hardest part would be integrating the expected future offer in order to get the full discounted offer. Nevertheless, a few approximate values can be used for a quick calculation.
Coinfairvalue.com values recorded on August 9, 2018.
Coinfairvalue.com’s aggregated list in 2021
The consideration of the fair value (FV) of crypto assets on coinfairvalue.com differs significantly from conventional market capitalization aggregators. For example, it also includes the US dollar and the euro, which are the two major currencies on the list.
Coinfairvalue.com values recorded on February 5, 2021.
Bitcoin is below the USD and EUR, but according to the FV record on coinfairvalue.com, the FV of BTC should be USD 10,960 per unit. This is in stark contrast to the BTC currency price, which is well above the $ 30,000 handle and close to the $ 40,000 zone. Ethereum (ETH) made headlines on Friday for breaking the $ 1,700 per handle price range. However, the FV record from coinfairvalue.com shows the ETH should be $ 351.13 per ether.
The controversial XRP for digital assets on coinfairvalue.com is not that different from other crypto-cap aggregators. However, the XRP should be $ 0.3942 per unit, instead of today’s $ 0.4592 per coin. Below XRP is Bitcoin Cash (BCH), which is currently trading for $ 438.64 per BCH. However, according to the FV web portal, the BCH FV metric should be around $ 1,723.86 per coin.
Other digital assets that show that they should be worth more than they actually are include crypto assets like crypto.com coin (CRO) and a few others. A vast majority of coinfairvalue.com’s offerings show that most of the coins are overvalued in terms of FV, and the total of all coins listed is around $ 445 billion. Again, this is much less than the current market valuation of all more than 7,500 existing crypto assets, valued at more than $ 1 trillion.
Coinfairvalue.com isn’t the only attempt to determine fair value as cryptocurrency backers have tried to do the same in the past. News.Bitcoin.com was investigating another rudimentary form of FV crypto coin aggregator in the spring of 2018 when Andrew Rennhack created his Honest Coinmarketcap.
Despite the alternatives, most people are likely to employ coin market cap aggregators that multiply price by supply. However, it is interesting to take a look at so-called “fair value metrics” to see a different perspective on crypto assets, which are often viewed as highly speculative.
What do you think of today’s FV statistics on coinfairvalue.com? Let us know what you think on this matter in the comments section below.
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Aggregators, BCH, Bitcoin (BTC), Bitcoin Cash, Bitcoin Cash BCH, Calculations, Coin Fair Values, coinfairvalue.com, Crypto Assets, Crypto Currencies, Currencies Fair Value, Profitability, Ethereum (ETH), Fair Value, Fair Values , FV, market caps, market valuations, pablompa, value
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