The Lukka Crypto Asset Score (LCAS) provides a comprehensive evaluation framework around tokens and coins that takes into account market trends, liquidity, risk, regulatory compliance, and technological developments.
Analyzing these scores gives our customers insights into how the digital asset ecosystem views both an underlying blockchain and the coins that sit on top of them. Factors that go into LCAS are grouped into broader categorizations that include:
- Markets & Accessibility
- Reputation
- Technology
- Community
The factor scores are then combined into an aggregate LCAS Score ranging from 1 – 100, along with a Segment Score that is somewhat analogous to a bond rating (i.e. A1, B3, C2, etc.)
It is well known that crypto markets in 2024 presented a dynamic landscape – it is therefore no surprise that some assets experienced significant LCAS and Segment score improvements, while others encountered downward adjustments. This article highlights the larger score changes for full-year 2024.
Top Performers in 2024 as measured by LCAS:
Several assets stood out as top performers, showcasing substantial score increases throughout the year. Ondo (ONDO) led the gainers with a score improvement of +31.71, moving from a C3 to B1 Segment Score rating, which could be attributed to its growing role in interoperability and eCommerce solutions.
Similarly, memecoins such as dogwifhat ($WIF) and SPX6900 (SPX) achieved notable gains of +24.22 and +24.06, respectively, potentially fueled by speculative interest and strong retail participation. Polygon Ecosystem Token (POL) also saw significant growth of +23.26, reflecting its importance in Layer-2 scaling solutions. Short-term interest in AI and blockchain convergence could be reflected in the performance of Virtuals Protocol (VIRTUAL), which saw a +13.81 score increase in Q4. However, the sustainability of such trends remains to be seen, as regulatory developments and technological shifts will continue to influence this sector of the market.
Underperformers in 2024 as measured by LCAS:
While assets mentioned above displayed improving scores, others look to have struggled due to changing market conditions. The Smart Contract Platforms sector appeared to experience the most significant downward trends, with Cosmos (ATOM) seeing a score reduction of -12.97, potentially due to growing competition in the interoperability space.
Similarly, Sui (SUI) experienced a decline of -8.52, possibly reflecting concerns regarding ecosystem growth and adoption challenges. Avalanche (AVAX) dropped by -6.13, as market participants explored alternative blockchain platforms offering competitive advantages. Stellar Lumens (XLM), which saw a minor decline of -3.56, suggest that while established players may face temporary corrections, their long-term value proposition remains intact.
LCAS: A Framework for Asset Evaluation
The Lukka Crypto Asset Score (LCAS) serves as a valuable tool for evaluating digital assets, offering insights across various dimensions such as liquidity, market sentiment, and regulatory compliance. With more than 10,000 assets scored and 30+ data fields, LCAS provides an in-depth perspective on market trends and asset viability.
By leveraging LCAS, market participants can gain a more structured understanding of potential risks and opportunities within the crypto ecosystem.
The score aids:
- Crypto exchanges in evaluating the attractiveness of listing a particular token
- Custodians in evaluating the suitability of a coin for custody
- Asset managers and hedge funds in applications such as portfolio allocation, risk management, and index construction
In sum, LCAS enables digital asset ecosystem participants tools for better-informed decision-making. Please don’t hesitate to reach out to Lukka in order to learn more
