If you are interested in cryptocurrency, you probably have used or heard of CoinGecko and CoinMarketCap. These are two of the most popular platforms for tracking and analyzing the crypto market. But which one is more accurate and reliable? How do they differ in terms of features, data sources, and market cap calculation? In this article, we will compare CoinGecko and CoinMarketCap and help you decide which one is better for your needs.
What is CoinGecko?
CoinGecko is an independent platform that provides comprehensive information on over 10,000 cryptocurrencies. It was founded in 2014 and has grown to become one of the leading sources of crypto data and analysis. CoinGecko tracks various metrics such as price, volume, market cap, community growth, developer activity, and exchange liquidity. It also offers unique features such as the Trust Score, which ranks exchanges based on their transparency and security, and the Sentiment Score, which measures the public opinion on each coin.
What is CoinMarketCap?
CoinMarketCap is the oldest and most widely used platform for crypto market data. It was launched in 2013 and acquired by Binance in 2020. CoinMarketCap lists over 11,000 cryptocurrencies and provides basic information such as price, volume, market cap, and algorithm. It also offers additional content such as videos, articles, and educational resources. CoinMarketCap has a large user base of over 35 million visitors per month.
How do they calculate market cap?
One of the main differences between CoinGecko and CoinMarketCap is how they calculate the market capitalization of each cryptocurrency. Market cap is an important indicator of the size and value of a crypto asset. It is calculated by multiplying the price of one coin by the total number of coins in circulation.
CoinGecko uses the total supply method to calculate market cap. This means that it considers all the coins that have been created or mined, regardless of whether they are locked, burned, or lost. This method gives a more accurate representation of the total value of a crypto asset.
CoinMarketCap uses the circulating supply method to calculate market cap. This means that it only considers the coins that are available and circulating in the market, excluding those that are held by the creators, developers, or other entities. This method gives a more realistic representation of the current demand and supply of a crypto asset.
The choice of method can have a significant impact on the ranking and valuation of cryptocurrencies. For example, as of October 18, 2023, CoinGecko ranks XRP as the 6th largest cryptocurrency with a market cap of $54 billion, while CoinMarketCap ranks it as the 7th largest with a market cap of $38 billion. This is because CoinGecko uses the total supply of XRP (100 billion), while CoinMarketCap uses the circulating supply (46 billion).
Which one is more accurate?
Both CoinGecko and CoinMarketCap have their advantages and disadvantages when it comes to accuracy and reliability. CoinGecko offers more relevant and in-depth information on various aspects of the crypto market, such as community growth, developer activity, exchange liquidity, and trust score. It also uses a more accurate method to calculate market cap. However, CoinGecko has a smaller user base and less influence than CoinMarketCap.
CoinMarketCap has a larger user base and more influence than CoinGecko. It also offers more content and educational resources for crypto beginners. However, CoinMarketCap has been criticized for being biased and inaccurate in some cases. For example, it has been accused of inflating the trading volumes of some exchanges by including fake or wash trading1. It also uses a less accurate method to calculate market cap.
Ultimately, the choice between CoinGecko and CoinMarketCap depends on your personal preference and needs. You can use both platforms to get a comprehensive overview of the crypto market and compare different data sources. However, you should always do your own research and verify the information before making any investment decisions.
Conclusion
CoinGecko and CoinMarketCap are two of the most popular platforms for tracking and analyzing the crypto market. They both provide useful information on various metrics such as price, volume, market cap, and algorithm. However, they differ in terms of features, data sources, and market cap calculation methods.
CoinGecko offers more relevant and in-depth information on various aspects of the crypto market, such as community growth, developer activity, exchange liquidity, and trust score. It also uses a more accurate method to calculate market cap using the total supply approach.
CoinMarketCap has a larger user base and more influence than CoinGecko. It also offers more content and educational resources for crypto beginners. However, it has been criticized for being biased and inaccurate in some cases. It also uses a less accurate method to calculate market cap using the circulating supply approach.
Both platforms have their advantages and disadvantages when it comes to accuracy and reliability. You can use both platforms to get a comprehensive overview of the crypto market and compare different data sources. However, you should always do your own research and verify the information before making any investment decisions.