finbold.com
Traders’ views on how crucial it is for cryptocurrencies to undergo constant innovation and improvement are often diametrically opposed. While some believe that it’s essential for a team of developers to work on enhancing an asset’s functionality, others question the necessity of such efforts when the cryptocurrency is already functioning as intended with few problems.
The ongoing development of a cryptocurrency is typically seen as a bullish indicator for the market, as advancements in the network, blockchain technology, and the overall ecosystem. This can enhance the appeal of the asset to potential investors, who may see continuous innovation as a promising sign of future growth and potential returns.
When analyzing the top 3 cryptocurrencies based on development activity via notable GitHub commits over the past 30 days, it is noteworthy that Polkadot (DOT) and Kusama (KSM) (sharing the red line) occupy the top two spots and share a similar trendline.
By constantly striving to improve the functionality, features, and overall ecosystem of their asset, these teams can help ensure that their project remains competitive and relevant, which can ultimately contribute to sustained price growth over time.
According to Santiment, when a project exhibits high and thriving development activity rates, there are three things that can be inferred with a certain degree of confidence. Firstly, the fact that people are actively working on the project suggests that there is a belief that it will be successful in the long run.
Secondly, a high level of development activity typically indicates that the project is regularly shipping new features and improvements, which can be a positive sign for the user experience and future growth potential.
Finally, when a project is frequently and consistently being developed, there is a lower probability that it is just an exit scam, rug pull, or other fraudulent scheme, as these projects often lack genuine development activity and rely on deceptive tactics to attract investors.