Scenario Analysis
Scenario Analysis 📈
The Scenario Analysis endpoint allows traders to gain a forward-looking perspective on their crypto assets by evaluating factors such as an individual coin's market dominance and the overall crypto market cap. This endpoint provides valuable insights that inform a trader's understanding of future price trends.
Parameters: TOKEN_ID, SYMBOL
Datapoints:
DATE
The date of Scenario analysis calculation of the requested crypto asset.
TOKEN_ID
Token ID for identifying cryptocurrency for calculating analysis (e.g., the Token ID of BTC is 3375).
TOKEN_SYMBOL
The symbol of the crypto asset (e.g., BTC).
TOKEN_NAME
The name of the crypto asset (e.g., Bitcoin).
SCENARIO_ANALYSIS
The different scenario of Total Crypto Market and asset's dominance, with the resulting price prediction.
Visualize on Token Metrics Application:
Go to the Token Metrics Token Detail Page and then click on the
Scenario Analysistab on the left side underInvestor.Screenshot from Token Metrics Application: Scenario analysis on Bitcoin judging by Total Crypto Market Cap and Dominance.
Example Use Case:
A trader can use Scenario Analysis to determine the potential price of a token based on changes in the total crypto market cap and the coin's market dominance. For instance, if a trader predicts that the total crypto market cap will reach $3 Trillion and the market dominance of Bitcoin (or the coin of interest) will reach 55%, they can calculate the implied price of Bitcoin as $86k.
Scenario Analysis can also be used to estimate the market dominance and total crypto market cap required to reach a desired price. For example, if the trader thinks that Bitcoin should be around $100k, they can determine the different combinations of market dominance and total crypto market cap that would result in this price, such as a market cap of $3 Trillion and dominance of 73%, or a market cap of $5 Trillion and dominance of 37%, or a market cap of $10 Trillion and dominance of 18%.
Updated about 1 year ago