Token Reputation Assessment: Market Differentiation and Future Trend Analysis

Recently, the overall cryptocurrency market has been declining, with many tokens down 80%-90% from their historical highs. An institution used artificial intelligence algorithms to conduct a comprehensive assessment of 2 million tokens based on 16 indicators, establishing a system to measure project credibility and market health.

Recent data analysis shows that the reputation scores of tokens exhibit a significant pyramid structure. The vast majority of tokens are concentrated in the "average" and "poor" ranges, while high-scoring tokens are extremely rare. This not only reflects the high differentiation in the market but also reveals the deep-seated differences in token quality among various blockchain platforms. This article will delve into the driving factors behind reputation scores and their impact on future market trends.

Token Reputation Index: High-Quality Projects Are Rare

Data shows that Ethereum remains the main platform for token issuance, accounting for 54.56% of the total. Following closely are Polygon (21.88%) and Base (16.32%), while Avalanche and Linea are relatively less.

In terms of reputation scores, most tokens are concentrated in the "average" and "poor" ratings. Approximately 116,347 tokens on Ethereum are at an average level, while 573,739 tokens have a poor rating. It is worth noting that the number of tokens rated as excellent and good across various blockchain platforms is very limited. Ethereum has only 7 tokens that achieve an excellent score and 310 tokens that achieve a good score.

The situation for Polygon is similar to that of Base. Taking Polygon as an example, out of its 450,000 tokens, only 5 are rated as "excellent", while tokens in the "poor" and "bad" categories account for as much as 96.7%. In the Base chain, out of 336,000 tokens, 75.6% fall into the "poor" category, with only 67 in the "average" category.

Interestingly, although the total supply of Avalanche Tokens is only 10.7% of Ethereum's, its "average" range token share (4.03%) is significantly higher than Ethereum's (0.34%).

These data reflect that although the Ethereum ecosystem has attracted a large number of projects, it also suffers from a serious "long-tail effect"—a few high-quality projects coexist with a large number of low-quality Tokens. In contrast, emerging chains like Polygon and Avalanche perform relatively better in the "average" range.

Factors Affecting Reputation Scores: Common Issues with Low-Score Tokens

By comparing the token characteristics in high and low rating ranges, it is found that low-scoring tokens generally have the following issues:

1. Insufficient liquidity and low market participation: The liquidity pool size and number of participants for low-grade Tokens are generally low, leading to significant price fluctuations and further undermining market confidence.

2. High concentration of token holders: The top 10 holders of low-scoring tokens often account for a significantly higher proportion than those of high-scoring tokens, and a highly concentrated holding structure can easily lead to market manipulation risks.

3. Insufficient trading activity and profitability: Low-scoring tokens lag significantly in trading volume and the proportion of profitable traders, making it difficult to attract long-term investors.

Market Share and Ecological Strategy Analysis

The correlation between the number of Tokens and reputation scores reveals the differences in ecological strategies among different blockchain platforms:

• Ethereum: As one of the most mature blockchains, it has both advantages and disadvantages. Its comprehensive development tools, large user base, and rich DeFi infrastructure make it the preferred choice for token issuance. However, high gas fees and network congestion issues have also forced many projects to turn to other chains.

• Polygon and Base: The ecosystem is rapidly expanding, but there is still a need to strengthen liquidity depth and user retention.

• Avalanche and Linea: Attracting specific projects through technical differentiation, but the user base remains limited.

Future Outlook

As regulation tightens and investors become increasingly professional, the Token Reputation Index may become an important tool for screening quality assets. Only those projects that achieve balanced development in terms of liquidity, holder distribution, and trading sustainability can gain an advantage in the future market. The crypto market is undergoing a deep reshuffling, and quality projects will stand out, becoming the leaders of the next bull market.