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Skynet Security Primitive #4: Market Analysis

In this short series, we’re going to dive into each of these six primitives and take a look at the different areas they cover and data they provide.

Skynet Security Primitive #4: Market Analysis

Skynet is a scalable security solution that leverages automated technologies to check deployed smart contracts for vulnerabilities. There are six metrics – called Security Primitives – that Skynet uses to arrive at an overall security score, on a scale of 0-100. 

At the end of this series, you’ll better understand how Skynet stays ahead of the market to provide timely security insights. And you’ll gain knowledge of what to look out for when researching a project’s security, making your journey through the metaverse safer and more rewarding.

Primitive #1: Social Sentiment

Primitive #2: On-Chain Monitoring

Primitive #3: Governance

Market Analysis

While token valuations are a combination of speculation and utility, crypto is inherently a financial industry. Price does not always reflect a project’s overall current health and future potential, but it is an important factor in many investment decisions.

For this reason, Skynet’s fourth Security Primitive is Market Analysis.

Here’s what it looks like for a project’s page on the Security Leaderboard:

Polygon’s Market Analysis Dashboard

Let’s break down what each of these metrics means.

The Volatility Score is generated via an algorithm that takes into account trading volume, price, and the following metrics.

Current Price is mostly self-explanatory, Skynet medianizes the price at which the token is trading across the exchanges listed below on the dashboard.

Trading Volume gives you the precise amount of the asset that has changed hands over the last 24 hours.

Circulating Supply is an important metric for calculating Market Capitalization, which is equal to the price of the asset multiplied by the number of tokens in circulation. Market Cap is a useful way to compare the relative size of assets even when they have different supplies.

Below these figures are graphs showing the change in their values over the last 7, 14, and 30 days. You can go back even further for Market Volatility, up to six months.

Finally, we have the Exchanges section. This is an easy way to see the most important markets for a certain asset. In the example of Polygon, the MATIC token is most traded against USDT on Binance, which accounts for nearly 21% of total trading volume. In second place is Coinbase, where MATIC/USD makes up 12%.

Market Analysis is an integral part of Skynet’s comprehensive Security Score. Price movements can foreshadow volatility in other sectors, including security, while liquidity is an important consideration for investors who want to gain exposure without moving the market too much. The data presented in Skynet’s easy-to-read dashboard makes understanding a token’s current market sentiment and performance at a single glance.