Vertcoin Versus Dogecoin

Vertcoin has been gaining momentum since my last article, "Vertcoin Most 'Active' Coin" was written.  Hopefully, that indicates that the method of analysis used has some merit.  I used a 'coin activity index' to compare the prospects of the top 12 coins by market cap.  Vertcoin scored highest followed by Dogecoin.

I would like compare those two coins again by putting them in a head to head matchup.  The reason is that Vertcoin has been steaming up the list of coins by market cap on Cryptocoincharts.  Meanwhile Dogecoins performance has been rather lackadaisical either indicating a loss of meme penetration or a lull in activity.  For these reasons a new comparison is due.  Without further ado let's get onto the challenge.

First, let me explain the activity index.  It compares coins activity divided by market cap.  There are three measures: The number of coins sent in the last 24 hours, the number of transactions in the last 24 hours, and the number of active addresses all divided by market cap.  The reason for dividing by market cap is to get some idea of how much a coin is being used per the amount of money invested in it.  Hence the term 'coin activity'.  Following then is the first chart which shows all three of these measures:

We see in the chart that Vertcoin outperforms Dogecoin by an average of about three times.

One negative from the point of view of using the index at this point has to do with the fact that Vertcoin has recently approximately tripled in market cap.  In other words, the price has already appreciated a lot.  See the next chart:

Vertcoin price chart on Cryptsy

Due to this recent and rapid price appreciation it could be what is called 'overbought'.  It is usually best to buy on pullbacks, not right after price just went up 300%.  So we should keep this in mind: even for a small crypto the recent price appreciation has been quite significant.  It may keep spiking up, but there is always the annoying chance of getting stuck buying at the top.  It will depend on what is giving Vertcoin its current momentum, and how long that cycle lasts.  One final point on the chart: Vertcoin is currently in a nice flag or pennant configuration so a break up would be bullish.

Next, just to get some idea of how Vertcoin has been overtaking Dogecoin let's have a look at the transaction history from Bitinfocharts:

Vertcoin and Dogecoin Transactions

Vertcoin appears squished to the bottom because Dogecoin was in transactional orbit outdoing even Bitcoin in transactions.  The reason for this was most likely spamming the network, possibly by someone named 'Wolong', but perhaps we will never know.  Anyway we can see how it looks like Vertcoin may Surpass Dogecoin in transactions at some point in the near future.

Finally, I decided based on a suggestion to add some social analysis to this.  The following two charts show the number of Tweets per day using the terms 'Dogecoin' and 'Vertcoin'.

Vertcoin Tweets last 30 days showing increased frequency
Dogecoin Tweets showing little change or declining frequency

Here Doge is still decidedly the leader.  In fact, I had to use separate charts or Vertcoin would just be a line on the bottom.  On the positive for Vertcoin, it is trending up while Doge seems stable or possibly in decline.

So what is the reason for Vertcoins gaining momentum?  Apparently it has to do with Vertcoins ASIC mining resistance due to adaptive n-factor technology that increases the memory requirements as mining becomes more difficult.  The Vertcoin Page on Reddit has a short explanation.

Apparently, like Doge, Vertcoin, has a good community except that is not exactly based on a meme.  Vertcoin is moving up the charts and in my opinion already challenging Dogecoin.  Let's see what happens next.

If you want to see a coin in this comparison just send an email or make a comment.  I am mostly looking for similar matchups or coins with good momentum, especially if they are about to rocket up as Vertcoin recently did.

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Jonas Borchgrevink @JonasBorch

Founder of CCN.com and Hacked.com. Passionate about how technology can empower people to create a more just and sustainable world.

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