The cryptocurrency market place has been through the wringer over the past 15 months. The sales prices of most altcoins have plunged by 90% or more from their all-time highs, and the king of crypto itself, Bitcoin, has dropped as much as 85% as well.
But regardless of prices being far lower than they once were, the fitness of the industry itself is only becoming stronger fundamentally, according to one cryptocurrency analysis firm.
Boston-Based Data Firm Reveals Crypto Industry Is Healthier Than Ever
Even though sentiment around the cryptocurrency market is still extremely bearish– and rightfully so taking into consideration the severity of the current bear market– the market is showing signs of maturing, and undaunted developers and users of top cryptocurrencies have continued to chug along.
The consequence is an industry that is a great deal healthier than prices may show, according to Boston-based crypto analytics firm Flipside Crypto. The cryptocurrency number-crunching company has released what it calls the FCAS25– an index that tracks the entire health of the crypto industry over time, using key metrics including user activity, developer behavior, and market maturity.
Conceding to Flipside Crypto's FCAS25, which is built on a “time-weight moving average” of 25 individual cryptocurrencies, the market health is far sturdier now than it was one year ago, and is ten points shy of its previous all-time high.
The Coinbase Ventures-backed Flipside Crypto says that market maturity, one of the three key factors it employs to ascertain industry health, has actually fallen since the 2017 pinnacle of the bull run. Since market maturity is tethered to “conventional understanding and public perception of the crypto-asset space,” it is reasonable that it has declined ever since the media storm of 2017 that launched Bitcoin into the stratosphere and turned it into a household name.
Developer behavior has stayed relatively consistent, “gradually increasing among the Flipside 25 over the course of the last 2 years.” Flipside says that this demonstrates a “healthy commitment among the teams supporting the ongoing improvements to the top crypto projects.”
*Today's Daily Mover*: KIN (@kin_foundation). New integrations, mainnet launch, and developer programs have KIN fundamentals on the rise: https://t.co/t82zgmeY3F #crypto #data #fundamentals pic.twitter.com/rHP8bqMizL
— Flipside Crypto (@flipsidecryptod) March 28, 2019
User activity, has only grown significantly among “top projects,” the firm says. “This leads us to believe that while investor interest has perhaps waned since early 2018, the top projects have successfully increased on-chain traffic and utilization of their projects; a sign of underlying fundamental health.”
Flipside Crypto: The Cryptocurrency Industry is “Humming”
Flipside crypto refers to their FCAS25 “a single, consistently comparable value for measuring cryptocurrency project health.” The system uses a lineup of cryptocurrency projects that ebbs and flows based upon their fundamental health. Together, they're weighted to calculate the overall health of the entire industry. The crypto industry, suggests Dave Balter, CEO of Flipside Crypto, is “humming.”
“When cryptocurrency prices are down, everyone worries about industry health,” he detailed. “But price is a poor indicator for whether cryptocurrency projects and platforms are gaining customers or delivering product to the market. We developed the FCAS25 to provide clarity into the fundamental health of cryptocurrency organizations, that isn't reflected in price. The data proves the cryptocurrency industry is far from over. As a matter of fact, it's humming.”
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