Root Rank – Where Does It Come From?

Root Rank is a metric that combines many kinds of metrics into a single score. It does this by constructing a tree out of more than 20 metrics. Each metric has a raw score (e.g. 100 on-chain transactions per day), which is then converted into a rank by comparing this metric across all coins in the Rootmont catalog. This rank is between 0 and 100, with 100 being the highest.

Each metric is placed into one of four categories.

1/ Usage – These metrics primarily concern on-chain usage and how that varies with the price.

2/ Price performance – These metrics look at risk-adjusted price performance, meaning gains are tempered by volatility and losses are exacerbated by volatility.

3/ Social – These metrics measure the social media presence.

4/ Development – These metrics measure engineering activity.

The ranks of the metrics in each category are averaged to create a category rank. These four categories ranks are then averaged again to create the Root Rank.

Root Rank is the root of a tree of metrics

Many of the metrics (such as alpha, beta, covariance, etc.) have an associated time window and sampling frequency that they are measured over. For Price Rank metrics, this window is taken to be 90 days, with daily sampling. For Usage Rank metrics, the time window is taken to be all time, from the first time the currency has a price on a secondary market. Sometimes the Usage Rank for a coin will be 0. This is because usage data is not yet being collected for this coin.

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