OCE potential: Valuation of OCE in FA and TA

3 min readOct 18, 2019

Conclusion

With CV Ratio (Total Supply Market Cap / Trading Volume Ratio) comparable method, if current valuation of #BNB and #HT are in fair value, then OCE should be around 3 times valuable as its current trading price (OceanEx, Huobi, Binance are all in CoinMarketCap Data Accountability & Transparency Alliance (DATA), therefore all data from CoinMarketCap are reliable and can be used in following analysis)

With CVG Ratio (Total Supply Market Cap / Trading Volume Growth Ratio) comparable method, since daily trading volume of OceanEx has increased rapidly and is more likely to continue the momentum in the future, the potential CV Ratio is expected to be even smaller, giving stronger support to investors that the current OCE’s fair value should be even more than 3 times of current trading price in long run. (*Can refer to ‘PEG ratio’ methodology used in mainstream equity valuation in Appendix)

After #OCE burn, given the total market cap remains the same, each token’s price will increase proportionally to reflect its fair value.

Fundamental Analysis

OCE’s daily trading volume is smaller compared with Binance and Huobi, but the total market cap of OCE is even much smaller than BNB or HT, therefore CV ratio suggests that the OCE is much more undervalued than BNB and HT.

P.S. The technical analysis indicators (e.g. MACD) suggests that a price floor has been reached, and price is in its upward trend.

Total Supply Market Cap / Trading Volume (CV) Ratio

Source: CoinMarketCap

Total Supply Market Cap / Trading Volume Growth (CVG) Ratio

Source: CoinMarketCap

If we consider the potential growth rate, OceanEx’s strong growth momentum provides a much stronger support to its token value, suggesting more potential increase of its total market cap.

Technical Analysis

The technical analysis indicators (e.g. MACD) suggests that a price floor has been reached, and price is in its upward trend.