After a difficult time in 2018 for the cryptocurrency market, it finally stabilized. With the exit from this sphere of weak participants, new projects began to appear. At the same time, total funding for the industry began to decline. In general, various ICOs and startups raised only $ 3.38 billion in 2019, while in 2018 it was $ 12.86 billion.
This state of affairs is due to the fact that investors have become more focused and have set higher requirements for blockchain projects. In addition, regulation of the cryptocurrency industry has intensified in different countries. This is good since dubious projects are eliminated already at the start and more and more companies have begun to develop their own blockchain products.
In this article, we will tell you about some of the projects that showed the greatest activity of developers for the last period of 2019 and how investors evaluate a crypto startup.
Developer activity as a metric
When an investor evaluates a project’s performance on the basis of blockchain or cryptocurrencies, it looks at a number of indicators. It is also necessary to take into account market capitalization indicators, valuation ratios and much more.
The activity of developers really began to gain popularity during the fall or stagnation of prices, when it became an unreliable tool for measuring project growth. In fact, it all depends on the amount of measurable effort to write code by people who work on a project or platform.
Most information gatherers that track developer activity typically do analysis based on the number of commits on GitHub.
GitHub is a project, code management and social media platform designed for developers. It allows them to work together with other people around the world, plan their projects and track work.
In this case, their activity is considered a good indicator. And if it will gain momentum, then perhaps in the near future the developers will announce a new release.
Based on information about the estimates of the GitHub commits last year, we can name the 3 most popular cryptocurrency projects:
- Insolar (INS) is a business-oriented blockchain platform with a market capitalization of $ 6.7 million and 8519 commits
- Aelf (ELF) is a blockchain-based cloud computing network with a market cap of $ 69 million and 7,110 commits
- Holo (HOT) is a decentralized exchange with a market cap of $ 141 million and 6,672 commits
Can you trust dev activity as a metric?
The activity of developers is important in that it allows us to evaluate how active the community of developers of the project is. It also provides an opportunity to learn about improvements and fixed bugs in startups before you start investing in them.
Despite the fact that this is not all indicators for making crypto-investment decisions, this approach has its drawbacks like:
- Activities cannot fully reflect the market interest or user demand
- Statistics of developer activity alone does not give an idea of the level of decentralization of the project
- It’s relatively easy to play with numbers of developer activity
Blockchain and cryptocurrency technologies are developing in a more regulated manner and are increasingly bringing real benefits in various fields. This contributes to the development of the industry and the emergence of new projects that are interesting both in terms of practical application and investment.
Everyone can choose their own way of evaluating projects for investments. But despite this, there is a general empirical decision regarding crypto-investment decisions: investors should not base their choice on any particular indicator.