Methodology

How we score, discover, and update coin data

The Legitimacy Score

Every coin on TokenSonar receives a Legitimacy Score from 0–100 — a composite measure of how deeply a blockchain is integrated into real institutional finance. This is not a price prediction or investment rating. It reflects the strength and breadth of verified institutional adoption.

Regulatory (0–100)
Licenses held across major jurisdictions — FCA, SEC, MiCA/CSSF, MAS, ASIC, VARA. More licenses in tier-1 jurisdictions = higher score.
Institutions (0–100)
Number, quality, and status of institutional deployments. Live production deployments count more than pilots. Global systemically important banks count more than fintechs.
ETF Status (0–100)
Spot ETF approval = 100. Filed = 60. No ETF = 0. Reflects US regulatory recognition and mainstream institutional access.
Volume (0–100)
On-chain activity relative to institutional use — not trading volume. Considers RWA value settled, TVL, and transaction counts from institutional wallets.
Legal Clarity (0–100)
Regulatory classification certainty. SEC commodity ruling, MiCA compliance, non-security rulings. Ongoing legal uncertainty reduces score.
Dev Activity (0–100)
Protocol development health — upgrade cadence, developer ecosystem, enterprise tooling, integrations shipping. Proxied from public GitHub and ecosystem data.

The composite score weights these dimensions based on their relative importance to institutional adoption. Regulatory and Institutions dimensions carry the highest weight. Scores are recalculated daily by the automated scoring pipeline.

Score Tiers

85–100 High Adoption Deeply embedded in institutional finance — live production deployments at major global institutions, strong regulatory clarity, or approved ETF.
70–84 Growing Adoption Meaningful institutional traction — multiple live deployments, regulatory progress, growing ecosystem.
Below 70 Early Stage Early institutional interest — pilots, emerging regulatory frameworks, or niche institutional use cases.

Dynamic Score Updates

Base scores reflect the editorial assessment of each coin's institutional status at the time of initial research. The automated pipeline then applies daily adjustments based on recent activity in the last 30 days:

currentScore = baseScore
  + (new regulatory licenses × 2)
  + (new institutional deployments × 1)
  + (high-importance ETF news × 3)
  capped at 100

Portfolio allocation weights are recalculated proportional to current scores each time scores update, so the Token Allocation Explorer always reflects the latest institutional landscape.

Data Sources

SourceWhat we use it forUpdate cadence
rwa.xyzOn-chain RWA value per network — total tokenized assets settled on each chainDaily (discovery agent)
DefiLlamaProtocol TVL for DeFi/RWA protocols; stablecoin market data; token fundamentalsLive (browser fetch) + Daily (discovery)
SoSoValueSpot ETF AUM and daily net flow data for ETH, XRP, HBAR, LINK productsLive (browser fetch, ~5 min cache)
CoinGeckoLive token prices and 24h price changeLive (browser fetch, 60 second refresh)
Whale AlertLarge on-chain transactions ($500K+) — exchange inflows/outflows as institutional signal proxyLive (browser fetch via server proxy, 5 min refresh)
CryptoQuantExchange flow data — inflow/outflow/reserve changes for ETH and XRPLive (browser fetch via server proxy, 5 min refresh)
FINRA ATSWeekly off-exchange trading percentage for crypto ETF tickersWeekly (pipeline run)
12 RSS feedsInstitutional news — The Block, CoinDesk, Finextra, PYMNTS, official project blogs, CoinTelegraph, DecryptEvery 6 hours (pipeline run)
Claude APINews classification, new coin research — AI classifies relevance, extracts entities, researches candidatesEvery 6 hours + daily discovery

RWA Value Definitions

On-Chain RWA Value (rwa.xyz)

The total market value of real-world assets that have been tokenized and currently exist on a given blockchain. This includes tokenized government bonds, money market funds, private credit, real estate, and commodities. Sourced from rwa.xyz which aggregates data from on-chain contracts and issuer disclosures.

Total Value Locked (TVL)

For DeFi protocols like Ondo Finance, the primary metric is TVL — the total value of assets deposited into smart contracts managed by the protocol. Sourced from DefiLlama.

Value Enabled (TVE)

For infrastructure protocols like Chainlink that don't hold assets themselves, we track the total value of financial transactions that flow through their oracle infrastructure. This is a measure of economic throughput, not custody.

Automated Coin Discovery

TokenSonar runs a daily automated discovery agent that scans for new blockchains and protocols gaining meaningful institutional traction. The process:

1. Signal detection — The news pipeline flags any coin mentioned 2+ times with high/medium importance that isn't already in our registry. The discovery agent also scans rwa.xyz and DefiLlama for new networks with $50M+ in assets.

2. Research — Claude Sonnet researches each candidate and assesses qualification against objective criteria: real institutional adoption, meaningful RWA activity, $50M+ in assets or 5+ institutional deployments, and not already covered.

3. Auto-add — Qualified coins are automatically added to the dashboard with a starting portfolio weight of 1–3%. Existing coin weights are scaled down proportionally to make room. New coins display a "NEW" badge for 30 days.

4. Rejection — Coins that don't meet criteria are marked as rejected and won't be re-researched unless new signals emerge.

Discovery runs daily at 2am UTC. Score updates run daily at 1am UTC. The news pipeline runs every 6 hours. All jobs commit their output to the GitHub repository, which triggers a Vercel redeploy within ~30 seconds.

Editorial Independence

No coin pays to be listed. Coins are discovered and added entirely by automated signals and editorial research. Listing decisions are based solely on verifiable institutional adoption metrics.

TokenSonar has affiliate relationships with OKX, Coinbase, Kraken, and Binance. These relationships have zero influence on which coins are tracked, their scores, or how they are described. Affiliate partners are not granted favorable treatment in any part of the dashboard.

Score adjustments are applied by algorithm, not editorially. The base scores reflect research at the time of initial listing; dynamic adjustments are computed from pipeline data using fixed formulas documented above.

Limitations

Institutional adoption data is sourced from public announcements, press releases, and on-chain data. Private deployments that have not been publicly disclosed are not reflected. Some institutions participate in multiple blockchain networks — they are counted separately per deployment.

Scores are snapshots. The institutional blockchain space moves rapidly. We recommend checking the data freshness indicator on the dashboard to understand when data was last updated.

Contact

Methodology questions or corrections: hello@tokensonar.com