Cryptonews.com Methodology for Rating Cryptocurrencies and Blockchain Projects
Crypto investors and users have different priorities. Some may seek projects with long-term potential and innovative technology, while others focus on immediate returns or emerging trends. Our analysis is designed to help you make informed decisions across various categories, from meme coins to decentralized finance (DeFi) tokens — whether you’re a seasoned trader or just starting in the space.
We use a rigorous, data-driven approach to evaluate and rate cryptocurrencies and blockchain projects on a 1 to 10 scale, with 10 representing the highest potential for investment, growth, or adoption. Each rating is incremented in tenths of a point to ensure nuanced and accurate assessments (e.g., 7.3, 8.8, 9.1). This detailed methodology page provides an inside look into how we assess various projects and the factors influencing our scores.
How Cryptonews.com Rates Cryptocurrencies and Blockchain Projects
Our evaluation process is structured into two parts. First, we carefully select projects that meet our inclusion criteria, ensuring that only the most relevant and promising cryptocurrencies or blockchain initiatives are considered.
As such, to be considered for selection, projects must meet specific benchmarks, including active development, technological strength, and regulatory compliance. They are then rated based on tailored criteria for each category, such as innovation, community engagement, and branding.
Each project is evaluated using both statistical and research-driven approaches. Data normalization (Z-scores) creates a fair comparison between different projects and removes outlier influence from high-volume or niche projects.
Data Sources and Research Processes
We source our data from trusted, up-to-date databases and platforms that track blockchain and cryptocurrency metrics. Primary sources include:
- GitHub for developer activity
- CoinMarketCap, CoinGecko, and TradingView for market data and technical indicators
- Blockchain explorers like Etherscan and Solscan for on-chain activity
- Social media platforms like X, Reddit, and Telegram for community engagement metrics
We also cross-reference data with analytics providers to ensure accuracy and consistency. Data is gathered weekly, providing a comprehensive and current basis for each score.
General Methodology
We consider several fundamental factors when evaluating cryptocurrencies and blockchain projects for investment and usage, including but not limited to the nine criteria described below. The Best Cryptos to Buy Now list is evaluated exclusively using our General Methodology.
For sub-categories like meme coins or presales, projects must first pass our General Methodology (i.e., the inclusion criteria). Only after meeting these benchmarks are they evaluated based on the specific criteria for their category. This ensures all projects included are thoroughly vetted before specialized factors are applied.
1. Market Capitalization and Liquidity (15%)
Why it matters: Market capitalization gives insight into a cryptocurrency’s size and stability. High-market-cap coins tend to be more stable, while smaller-cap coins may offer higher growth potential but come with increased volatility. High liquidity ensures that a cryptocurrency is easy to buy or sell.
How it’s measured: Cryptocurrencies are categorized based on their market cap into large-cap (>$10 billion), mid-cap ($1 billion–$10 billion), and small-cap (2. Developer Activity and Community Support (15%)
Why it matters: Active developer teams and strong community engagement are critical for long-term success, ensuring the project remains competitive through technological updates.
How it’s measured: We review GitHub activity, partnerships, roadmap progression, and community engagement across social media and forums like Reddit and X.
3. Technological Strength (20%)
Why it matters: Technological innovations, such as consensus mechanisms, scalability solutions, and privacy features, can significantly impact a coin’s growth.
How it’s measured: We evaluate the underlying blockchain technology, consensus mechanism, speed, transaction costs, scalability, and security features.
4. Regulatory Compliance and Risk (10%)
Why it matters: Cryptocurrencies operating in uncertain regulatory environments carry additional risks. Compliance with local regulations and transparent legal frameworks are increasingly important for long-term success.
How it’s measured: We examine whether the crypto complies with major regulatory bodies, such as the SEC or CFTC, or is potentially vulnerable to future bans or restrictions.
5. Utility and Use Cases (20%)
Why it matters: A cryptocurrency’s value often stems from its real-world utility. Cryptos with strong use cases, like DeFi tokens, privacy coins, or infrastructure tokens like Ethereum, tend to have more staying power.
How it’s measured: We assess the cryptocurrency’s functionality within its ecosystem (e.g., smart contract capabilities, interoperability, staking benefits, and more).
6. Tokenomics and Burn Mechanisms (10%)
Why it matters: A token’s supply structure, including total supply and inflationary or deflationary models, can affect its long-term price trajectory.
How it’s measured: We assess factors like maximum supply, issuance rates, staking rewards, and burn mechanisms. Deflationary tokens — with supply caps or burn mechanisms — often fare better long-term.
7. Partnerships and Ecosystem (5%)
Why it matters: Cryptocurrencies with strong partnerships and integrations with other projects or institutions generally have a more robust foundation for growth.
How it’s measured: We review partnerships with technology providers, financial institutions, or other blockchain networks, as well as any integrations with DeFi platforms, exchanges, or NFT marketplaces.
8. Growth Potential and Roadmap (3%)
Why it matters: A clear, actionable, and ambitious roadmap signals the project’s direction and growth prospects.
How it’s measured: We analyze the project’s whitepaper, future milestones, and likelihood of achieving goals based on past performance — or comparison with similar projects for presale, ICO, or new cryptocurrencies.
9. Risk Factors (2%)
Why it matters: High returns come with higher risks. Risk factors such as volatility, liquidity risk, and competitive threats should be considered.
How it’s measured: We evaluate volatility, market competition, past security issues like hacks, and susceptibility to market swings or technological failures.
Category-Specific Methodology
Categories require specialized evaluation metrics beyond the general criteria. Below are two examples of specific criteria used for different crypto categories.
Other category-specific rating criteria are detailed on each page, but only cryptos that passed the General Methodology undergo this secondary evaluation.
1. Best Crypto Presales and ICOs
Crypto presales let you buy tokens early, often at a discount. You gain access before public trading, maximizing returns if the token appreciates.
Here are the criteria we use to rate them:
- Team and Audits (30%): The credibility of the development team and audit history are crucial. We assess team backgrounds, prior projects, and third-party audits to ensure transparency and security.
- Funding and Backers (25%): We evaluate the presale’s funding rounds, partnerships, and industry endorsements. Well-backed projects often signal credibility and lower risk.
- Presale Structure (20%): We assess token allocations, vesting schedules, and whether the structure is fair for retail investors. Projects with fair distribution mechanisms and reasonable hard caps are rated higher.
- Current Market Trends (15%): We analyze how the presale aligns with current trends. Projects matching high-demand sectors are more likely to attract investor interest.
- Sellout Speed (10%): Fast sellouts indicate strong demand and project appeal. We consider the presale’s speed and participation rate as indicators of investor confidence.
2. Best Meme Coins and Shitcoins
Meme coins and shitcoins are crypto tokens driven by internet culture, often gaining popularity through viral trends. You can profit from their high volatility if you enter and exit strategically.
Here are the criteria we use to rate meme coins and shitcoins:
- Community Strength (50%): These coins thrive on hype, driven by a strong and active community. We assess social media engagement on platforms like X, Telegram, and Reddit, as well as celebrity endorsements.
- Virality and Branding (35%): A coin’s success often hinges on its ability to go viral. We evaluate its branding, cultural relevance, and potential for social media attention.
- Short-Term Price Movements (15%): Meme coins are volatile, so we analyze recent price spikes and dips to gauge short-term profitability.
3. Best New Cryptocurrencies and Upcoming Launches
New cryptocurrencies are digital assets that have recently launched. If adoption increases, you can benefit from high growth potential. Coins with upcoming launches are cryptocurrencies offered before public trading. They allow early investors to buy at lower prices while aiming to raise funds for development and offering high-risk, high-reward potential.
Here are the criteria we use to rate upcoming cryptocurrencies:
- Innovation and Technology (25%): We assess how the upcoming crypto brings innovation to the market, including faster transaction speeds or unique applications.
- Early Adoption Potential (25%): We evaluate the potential for widespread adoption based on its utility, partnerships, and community interest on social media.
- Roadmap (25%): We analyze the project’s progress, focusing on upcoming feature launches or key milestones from the roadmap.
- Market Differentiation (25%): We look for projects that differentiate themselves from competitors, particularly in crowded sectors like DeFi or Layer 1 networks.
In some instances, we utilize market data to identify top-performing assets. Newly launched coins often emerge without verifiable fundamentals, team transparency, or clear utility, relying purely on virality, hype, and speculation. Examples include new tokens launched anonymously on platforms like Pump.fun.
Given this unpredictability, we prioritize the wisdom of crowds instead of applying traditional research methodologies. We typically select projects with the highest 24-hour gains and/or fastest market cap growth.
Scoring and Weighting
Our rating system is designed to provide an accurate, data-driven evaluation by balancing the General Methodology and Category-Specific Methodology in scoring projects for specialized categories.
While we attribute a General Methodology rating to each project, the goal is simply to rule out projects that do not meet basic criteria. The output from this initial assessment is ‘yes/no,’ i.e., the coin either passes to the second assessment stage or not.
The Category-Specific Methodology is divided into distinct factors, each scored on a 1–10 scale. Weighted scores for each criterion are used to calculate the project’s overall rating.
For instance, in evaluating “Best Meme Coins,” the General Methodology assesses factors like market cap and liquidity, ruling out projects that do not meet certain benchmarks. Then, category-specific criteria (e.g., virality, branding) are applied to attribute a rating relevant to meme coins.
Rankings are updated periodically based on the latest data and market conditions.
Data Normalization and Calculation Process for Each Factor
We use Z-scores to normalize each metric within its category to ensure a fair comparison. This calculation process allows us to compare vastly different projects on a level playing field, such as small-cap vs. large-cap cryptocurrencies.
Z-scores do this by calculating how far each project’s score is from the category average regarding standard deviations. They prevent one extremely high value from dominating the total score by averaging all projects against a “mean” benchmark.
For example, if Bitcoin’s exceptionally high market cap were compared directly with much smaller coins, it would disproportionately affect the scoring process. By normalizing with Z-scores, Bitcoin’s value is anchored relative to the mean, thus keeping it within a range where it doesn’t excessively skew other scores.
After calculating Z-scores, we weigh each criterion according to its importance in the Methodology. For instance, if a cryptocurrency’s transaction speed exceeds the average within its category, it will have a positive Z-score. This would boost its weighted score for the Technological Strength criterion, which makes up 20% of the General Methodology.
By contrast, a lower-than-average liquidity score results in a negative Z-score for Market Capitalization and Liquidity, proportionately reducing its weighted score (15%).
Weighted scores ensure that no criterion overpowers the entire evaluation, balancing individual high or low scores without making them dominant. This rigorous, normalized scoring process ensures that our ratings remain objective, eliminating biases and producing a thorough, scientifically grounded evaluation.
Editorial Guidelines and Expert Review Process
At Cryptonews.com, we combine rigorous editorial standards with expert oversight to ensure each rating reflects the highest levels of reliability. Our commitment to comprehensive reporting is guided by five core principles: accuracy, transparency, impartiality, truthfulness, and responsibility.
Our crypto analysts thoroughly review every project score, evaluating the project’s metrics and data from a technical standpoint. We also work closely with blockchain technology experts and data scientists, who review, verify, and validate each score for consistency and scientific rigor.
This expert oversight helps ensure that complex metrics are accurately applied, allowing for unbiased, data-driven results. For example, our analysts review GitHub activity metrics to assess developer support, while blockchain experts verify the underlying technology’s scalability, security, and consensus mechanism.
Additionally, all evaluations undergo fact-checking and data verification. We use trusted sources like GitHub, CoinMarketCap, and Telegram to cross-reference each metric. Before finalizing ratings, our editorial team assesses the findings in consultation with industry professionals to verify each project’s strengths and weaknesses.
This collaborative approach between analysts, editors, and industry experts enables us to present nuanced and reliable scores, offering you a trusted source for crypto ratings and recommendations.
For more information, read our Editorial Guidelines.
Ongoing Methodology Updates
Our methodology is reviewed and refined periodically to keep pace with crypto market changes, emerging trends, and technological advancements. This review process ensures our criteria remain relevant, accurate, and aligned with industry standards.
We adapt metrics to reflect developments such as regulatory shifts, new blockchain use cases, and evolving data analysis techniques. Each update is informed by in-depth market research and consultation with blockchain experts, analysts, and industry professionals.
For instance, if DeFi protocols introduce novel staking models, we adjust our evaluation criteria for Utility and Tokenomics to reflect these innovations. This ongoing refinement guarantees that our evaluations stay trustworthy, helping you make informed, up-to-date decisions.
- January 2025 Update: The General Methodology rating no longer counts towards coins’ final rating, apart from its specific category described above. It only stands as a ‘yes/no’ test on whether projects meet basic benchmarks for further evaluation.
- February 2025 Update: We forked the Category-Specific Methodology #3, creating separate criteria for some cryptocurrencies. We perform fundamental analysis for most new projects but rely on market performance metrics when information is lacking.
About Cryptonews
Our goal is to offer a comprehensive and objective perspective on the cryptocurrency market, enabling our readers to make informed decisions in this ever-changing landscape.
Our editorial team of more than 70 crypto professionals works to maintain the highest standards of journalism and ethics. We follow strict editorial guidelines to ensure the integrity and credibility of our content.
Whether you’re looking for breaking news, expert opinions, or market insights, Cryptonews has been your go-to destination for everything cryptocurrency since 2017.