> For the complete documentation index, see [llms.txt](https://dyor.hacken.ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dyor.hacken.ai/do-your-own-research-101-crypto-course/how-to-identify-worthy-crypto-projects/how-to-use-the-caped-framework-for-surface-dyor.md).
# How to use the CAPED framework for surface DYOR
To sort the researched projects by their potential for being alpha, use the CAPED approach. Analyze and score 4 factors:
1\. Capitalization of a project:
* 0 points: Under $1M
* 1 point: $1M - $10M
* 3 points: $10M - $100M
* 2 points: $100M - $1B
* 1 point: Over $1B
Small market cap projects have higher potential returns but also higher risk, hence the U-shaped scoring.
2\. Activity of traders:
* 0 points: Under $10K
* 1 point: $10K - $100K
* 3 points: $100K - $1M
* 2 points: $1M - $10M
* 1 point: Over $10M
Again, trading volume is U-shaped since both low and high volumes can be a sign of risk - low volume means potential illiquidity, while high volume could indicate pump-and-dump schemes.
3\. Price Performance:
* 0 points: Negative performance
* 2 points: 0% - 25%
* 3 points: 25% - 50%
* 4 points: 50% - 100%
* 1 point: Over 100% gain
A recent excessive price gain might indicate a recent pump, hence a lower score.
4\. Engagement inside the community (Twitter/Discord/Telegram users):
* 0 points: Under 1,000 users
* 2 points: 1,000 - 5,000 users
* 4 points: 5,000 - 10,000 users
* 3 points: 10,000 - 50,000 users
* 1 point: Over 50,000 users
A larger community might indicate a hype-driven project, hence the inverted U-shaped scoring.
5\. **Development** (Github commits in the last 30 days):
* 0 points: 0 commits
* 3 points: 1-10 commits
* 4 points: 11-50 commits
* 2 points: 51-100 commits
* 1 point: Over 100 commits
Continue your DYOR path in the next article: How to evaluate crypto projects.
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