Token Reputation Assessment Reveals Polarization in the Crypto Market

Recently, the overall crypto market has declined, with many Token prices dropping by 80%-90% from their peak. A data analysis company utilized artificial intelligence algorithms to conduct a comprehensive assessment of over 2 million Tokens based on 16 specific indicators, establishing a system for measuring project credibility and market health.

The latest data analysis shows that the Token reputation scores exhibit a significant pyramid structure, with the vast majority of Tokens concentrated in the "average" and "poor" ranges, while high-scoring Tokens are extremely rare. This phenomenon not only reflects the high differentiation of the market but also reveals the deep disparities in Token quality across different blockchain platforms.

Token Reputation Index Analysis

Data shows that Ethereum remains the primary Token issuance platform, accounting for 54.56% of the total. Polygon and Base rank second and third with shares of 21.88% and 16.32%, respectively, while Avalanche and Linea have relatively smaller shares.

In terms of reputation scores, the vast majority of tokens are concentrated in the "average" and "poor" categories. Taking Ethereum as an example, approximately 116,347 tokens are at an average level, while 573,739 tokens are at a poor level. The number of tokens in the excellent and good ratings is very limited across various blockchain platforms.

It is worth noting that although the total amount of Avalanche's Token is only 10.7% of Ethereum's, its "average" range of Token proportion reaches 4.03%, significantly higher than Ethereum's 0.34%. This reflects the differences in Token quality distribution across different blockchain platforms.

Key factors affecting Token reputation scoring

By comparing the characteristics of Tokens in high and low scoring ranges, it can be found that low-scoring Tokens generally have the following problems:

1. Insufficient liquidity and low market participation: The liquidity pool size and number of participants for low-cap tokens are generally small, leading to significant price volatility.

2. Concentration of Token Holders is Too High: The top ten holders of low-score Tokens often account for a disproportionately high percentage, increasing the risk of market manipulation.

3. Trading activity and insufficient profitability: Low-scoring Tokens lag in trading volume and the number of profitable traders, making it difficult to attract long-term investors.

The ecological strategy differences of blockchain platforms

The distribution of the number of Tokens and reputation scores reflects the ecological strategies of different blockchain platforms. Ethereum, as a mature platform, has both advantages and challenges. Its well-established infrastructure attracts a large number of projects, but it also faces high Gas fees and network congestion issues.

Emerging platforms like Polygon and Base are rapidly expanding, attracting projects to migrate through cost advantages. However, these platforms still need to improve liquidity depth and user stickiness. Avalanche and Linea attract specific types of projects through technological differentiation, but the user base still needs to be expanded.

Future Outlook

With the further development of the crypto market, the Token reputation index may become an important tool for screening quality assets. Only those projects that develop in a balanced manner across multiple dimensions such as liquidity, coin distribution, and trading sustainability are likely to stand out in future market competition and become leading assets in the field of encryption.