In this rapidly evolving cryptocurrency market, traditional financial metrics often inadequately capture the distinct characteristics and high volatility inherent to these digital assets. This paper proposes a novel Cryptocurrency Performance Metric (CPM) designed to address these limitations by providing a nuanced assessment of cryptocurrency performance through a rolling-time analysis. The CPM integrates advanced metrics like range, returns, volatility, volume traded, and close prices that account for the extreme volatility, market behaviour, and technological factors affecting cryptocurrencies. Utilizing a comprehensive approach that includes price ratios, volatility measures, and market dominance indicators, the CPM offers a robust framework for evaluating the relative performance of various cryptocurrencies. The Cryptocurrency Performance Metric’s methodology is grounded in financial theory and econometric models, enabling detailed outcomes that reflect both short-term fluctuations and long-term trends. The CPMoffers investors, policymakers, and financial professionals a structured framework for evaluating cryptocurrency performance, enhancing investment strategies, and mitigating market risks. It also enables these parties to identify strengths and weaknesses among cryptocurrencies more effectively. By advancing the understanding of cryptocurrency dynamics, the CPM contributes to the development of more effective strategies for investment and risk management in this burgeoning asset class. Through this analysis it was found that Litecoin featured better than many other coins, Ethereum and Bitcoin remained major players, while Cardano was seen robust during 2023, 2024.

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Keywords

Cryptocurrency Performance Metric, Cryptocurrency markets, Volatility and liquidity, Rolling-time analysis