The CryptoCurrencyChart utility rating for crypto currencies is a rating for coins to determine how much they are used. This can be an important measure of how much utility the coin offers.
Utility for a coin can mean different things, but it can be measured by the number of transactions, the fees users are willing to pay and its trade volume indicates how much it is bought and sold.
The rating consists of the number of transactions, the paid fees and the amount traded on exchanges as each represents a sort of utility for the coin.
- Transactions - Indicates the usage of the coin
- Fees - The amount users are willing to pay for usage of the coin
- Trading volume - The amount being traded for the coin indicates its utility as a means of exchange
The utility rating is 0 when all of its components are 0, it increases when its components rise. There is no maximum value since it is impossible to determine what maximum utility would be.
L2 transactions (such as BTC Lightning) are not considered in the utility rating since they are hard to measure and increased L2 activity should result in more fees and transactions thus increasing the utility rating indirectly.