The five factors
Four asset-level factors are each normalized to a 0–1 range, combined with a
geometric mean, and then scaled by the market-wide regime gate. Here is what each one measures,
where the data comes from, and what it deliberately does not capture.
- Regime — the market gate
- Overall market conditions, read from Bitcoin's 30-day trend and its dominance of total market cap.
It applies to every coin as a common multiplier, because altcoins rarely run against the broad market.
Source: BTC price history and dominance (CoinGecko).
What it misses: it is a single number for the whole market. A genuinely idiosyncratic move
— a chain-specific catalyst in an otherwise flat market — is damped by a low regime gate.
- Momentum
- The coin's own 7-day and 30-day price trend — a coarse read on whether a move is sustaining or fading.
Source: daily close prices (CoinGecko).
What it misses: trend, not turning points. Momentum is highest just before it breaks, and lowest
just before it turns. It describes the recent past, not the next move.
- Liquidity — traded volume depth
- The absolute level of 24-hour traded volume, on a logarithmic scale from $100 to $10M. It is a
qualification, not an amplifier: an asset with a few dollars of daily volume can print any price, but that
price is not one you could act on. Until August 2026 this slot held the inverse measure — order-book
thinness — which rewarded assets nobody traded and buried the most heavily traded ones. The sign was
wrong, and the scores it produced are not comparable to the current ones.
Source: 24h volume (CoinGecko).
What it misses: reported volume can be inflated by wash trading. See
Limitations.
- Fundamentals — TVL relative to market cap
- Capital locked on the chain (total value locked) measured against market cap — a rough test of whether
the valuation is backed by usage. Assets for which TVL is structurally irrelevant (exchange tokens, memecoins,
assets with no DeFi surface) are treated as neutral rather than penalized for a metric that does not apply to them.
Source: TVL from DefiLlama; market cap from CoinGecko.
What it misses: TVL itself can be double-counted across protocols. It is a usage proxy, not proof of value.
- Supply lightness
- Circulating supply divided by total supply. The lower it is, the more tokens are still locked, vesting, or
unminted — and the more future dilution structurally remains to be released onto the market.
Source: circulating and total supply (CoinGecko).
What it misses: circulating and total supply are often self-reported by projects, and unlock schedules
change. It flags structural overhang, not its exact timing.
Updated 2026-08-14 · rebuilt daily
This site provides information based on public data. It is not investment advice or a solicitation to buy or sell. The heat score is a deterministic, relative indicator computed by a fixed formula; it does not predict future prices. Trading crypto assets involves risk, including price volatility. Make your own decisions.
Data provided by CoinGecko · TVL / fees / stablecoins: DefiLlama · Fear & Greed: alternative.me
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