Many cryptocurrencies claim to be the 'leader', but what kind of cryptocurrency can truly be considered a leader? Is it enough to have the largest market capitalization to be called a leader? Let me clarify for everyone.
Cryptocurrencies with too small a market cap are definitely not leaders
Market capitalization reflects the strength of market consensus. If the market cap is not high, claiming to be a leader is essentially self-deprecating. A leader must have sufficient market recognition.
Cryptocurrencies with highly concentrated holdings are not leaders
If a cryptocurrency's holdings are highly concentrated in the hands of a few people, even if it has a large market cap, its market consensus may not be high, and it could be severely 'controlled', unable to represent the entire market. Therefore, cryptocurrencies that are widely held and have dispersed holdings are more likely to become leaders.
Only those with strong community expansion capabilities can become leaders
If a cryptocurrency has a large number of holders but lacks community cohesion and has weak diffusion ability, then even with a large market cap, it still cannot become a true leader. The community of a leading cryptocurrency must have strong centripetal force and activity, capable of attracting more new users and investors.
Frequent price turnover and obvious wealth effects
Leading cryptocurrencies usually see a large turnover during price fluctuations, which not only proves strong market demand but can also trigger wealth effects, attracting more investors to enter the market.
Sturdy prices and strong resistance to declines
When the market generally retraces, the price of leading cryptocurrencies usually remains relatively sturdy, with smaller retracement ranges; once the market stabilizes, they often rebound quickly and lead the upward trend.
A leading cryptocurrency may not necessarily have the largest market cap, but it must have high market consensus, an active community, dispersed holdings, and sturdy prices. To select a leader, one must not only look at market cap but also conduct a comprehensive analysis of its market position and performance.
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