- Green area: Market price of coin, in US$;
- Blue line: Market cap of coin per 1 petahash per second of security, in US$ milion;
- White line: 200-day moving average of blue line, in US$ million.
hashrate valuation explained
As mentioned, a blockchain's hashrate is one of its most fundamental and important features. It is vitally important in reflecting the relative security of a blockchain. The charts in this section measure the relative value of each chain's market cap, per one petahash of each chain's security (per second!). Remember, one petahash is 10^12 hashes, or a 1 with 12 zeroes behind it. If a blockchain's hashing power is one petahash, this essentially means that its miners are securing the chain at a rate of 1 trillion calculations per second. Bitcoin surpassed this level of security in late 2013.
If we compare Bitcoin or another blockchain's market cap as a multiple of its petahashes, it essentially shows us how much the chain's security is "costing" its market cap (per each $1 million in these charts). To be clear, this is not how much money it costs the miners to secure the network. That is a very different calculation that is much more difficult to calculate, as miners globally have very different cost structures.
What we are calculating here is much more transparent. What we can see here is the relative "strength" of a blockchain's security. A downward trend is typically a positive sign for value and security.
For example, you can see that in Bitcoin's early years, it would have required $100 million in market cap to "cover" one petahash per second of security. Again this was more of a figurative calculation, as in those early days, Bitcoin's market cap was neither $100 million in value, nor did it even secure itself at one petahash per second. You can see the positive trend, however, that eventually Bitcoin required much less than $1 million in market cap to "cover" one petahash per second of security.