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Crypto analytics firm: The market is stronger than a year ago


www.chepicap.com 30 March 2019 10:00, UTC
Reading time: ~3 m

Coinbase Ventures-backed crypto analytics company, Flipside Crypto thinks that the overal crypto market at the moment is healthier than how it was a year ago based on their FCAS25 tracking index. 

Despite the Bitcoin price still hovering just slightly above $4,000 and the altcoins price seems to be in red more often than green, there has been some bullish sentiment circulating these days.

Read more: Are we already in a cryptocurrency bull run right now?

Adding to the bullish sentiment, crypto analytics firm, Flipside Crypto said that the current crypto market is far stronger than how it was a year ago.

The “opinion” doesn’t come out of nowhere, but it is the result of a thorough analysis to the crypto industry over time that takes into account several key metrics, such as user activity, developer behavior and market maturity.

The issued index, which is called FCAS25, is based on a “time-weigh moving average” of 25 cryptocurrencies.

Based on it, the Coinbase Ventures-backed company said that the crypto market maturity, which is one of the three key factors used to determine industry health, has fallen since the peak of the bull run in 2017.

Considering that market maturity is heavily related to “conventional understanding and public perception of the crypto-asset space”, the opinion is reasonable.

Meanwhile, developer behavior is said to have been gradually increasing, which the team said to show a “healthy commitment among the teams supporting the ongoing improvements to the top crypto projects”.

As for user activity, the index showed that it only sees a significant grow among top projects, which lead to the conclusion that the top projects have increased on-chain traffic and utilization, a sign of underlying fundamental health, despite the dwindling of investors’ interest.

The Boston-based firm then explained about the formula used for FCAS25, which is a list of crypto projects that ebbs and flows based on their fundamental health that would eventually show the overall health of the entire industry.

Thus, with a high-level of confidence, they call the FCAS25 as “a single, consistently comparable value for measuring cryptocurrency project health”, as reported by NewsBTC.

According to Flipside Crypto’s CEO, Dave Balter, crypto price is a poor indicator. Quoting his statement, “When cryptocurrency prices are down, everyone worries about industry health. But, price is a poor indicator for whether cryptocurrency projects and platforms are gaining customers or delivering product to the market.”

Furthermore, he added, “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.”

Balter used his own words to describe the cryptocurrency industry at the moment when he said that it’s “humming”.

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