Crypto Prices May Be Down, But Industry Fundamentals Are Healthier Than Ever

The cryptocurrency market has been through the wringer over the past 15 months. The prices of most altcoins have plummeted by 90% or more from their all-time highs, and the king of crypto itself, Bitcoin, has declined as much as 85% as well.
But despite prices being far lower than they once were, the health of the industry itself is only getting stronger fundamentally, according to one cryptocurrency analysis firm.
Boston-Based Data Firm Reveals Crypto Industry Is Healthier Than Ever
While sentiment around the cryptocurrency market is still extremely bearish – and rightfully so considering the severity of the current bear market –the market is showing signs of maturing, and undeterred developers and users of top cryptocurrencies have continued to chug along.
The result is an industry that is a lot healthier than prices may reflect, 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 overall health of the crypto industry over time, using key metrics such as user activity, developer behavior, and market maturity.
Related Reading | Crypto Bull Returns, Predicts Targets For Bitcoin, Ethereum, Ripple, Litecoin
According to Flipside Crypto’s FCAS25, which is based on a “time-weight moving average” of 25 individual cryptocurrencies, the market health is far stronger 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 uses to determine industry health, has actually fallen since the 2017 peak of the bull run. Since market maturity is tied 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 sent Bitcoin into the stratosphere and made it 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 calls their FCAS25 “a single, consistently comparable value for measuring cryptocurrency project health.” The formula uses a list of cryptocurrency projects that ebbs and flows based on their fundamental health. Together, they’re weighted to determine the overall health of the entire industry. The crypto industry, says Dave Balter, CEO of Flipside Crypto, is “humming.”
Related Reading | Fundamental Analyst: 90% of Smaller Crypto Projects Will Result in Complete Loss
“When cryptocurrency prices are down, everyone worries about industry health,” he explained. “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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Flipside Letter Grades Break into the Mainstream Featuring on CoinMarketCap

Coinspeaker
Flipside Letter Grades Break into the Mainstream Featuring on CoinMarketCap
CoinMarketCap features Flipside crypto asset letter grades. With this move, online publishers will enable users to determine how digital assets keep evolving in real time in an enhanced transparent environment.
Flipside Letter Grades Break into the Mainstream Featuring on CoinMarketCap

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Source: CoinSpeaker

Flipside Crypto Adds Coinbase, DCG as Investors, Aims to Offer Fresh Approach to Digital Asset Value

As the cryptocurrency market continues to expand and mature, investors are increasingly seeking ways to spot a great project from vaporware dressed up with buzzwords. Flipside Crypto will provide data on various aspects of different digital assets.
Flipside Crypto Impresses Big Names with “Unique” Crypto Data Platform
According to a report in MarketWatch, Flipside Crypto has suitably impressed two of the largest names in the digital currency space. Coinbase and the Digital Currency Group have both invested in the Boston-based tracking and data company.
The service provided by Flipside Crypto was inspired by the wild excesses of the bull market last year. At the height of the speculative mania, investors would throw money at any idea that offered the right concoction of buzzwords and the targeting of some vague (or non-existent) problem.
Flipside Crypto wants to create a platform for blockchain data to help investors spot the occasional diamond-rated startup in a sea of largely hopeless ideas. Dave Balter, the CEO of the firm, spoke to MarketWatch about the project and the Flipside Crypto Asset Score created by the company using the data on offer:
“The cryptocurrency market is maturing and institutional and retail investors are becoming more sophisticated, seeking information beyond market cap and pricing data to understand cryptocurrency projects… FCAS [Flipside Crypto Asset Score] provides a simple, easy-to-understand way to go 100 times deeper than before.”
Each cryptocurrency is given one of these FCAS ratings. This is based on various information from the blockchain in question. There are three main inputs: A project utility score, a trading signal score, and a developer activity score.
The first main input is supposed to be a measure of how much the currency is being used and by how many people. This can be used to give an indication about how useful a project is to people. To come to this project utility score, data is taken from the blockchain and, if appropriate, smart contracts based upon it. Balter continued:
“Customer activity is the canary in the coal mine. You can look at prices all day long, but you’re not looking at fundamentals.”
The next input in the FCAS ratings system is the trading signal score. This tracks any patterns created by traders and can influence an investor’s decision making by increasing their understanding of trends and volatility.
Related Reading: Coinbase Launches OTC Platform, Clients Still Bullish On Crypto
Finally, there is the developer activity score. This shows potential investors how active a community is around a given project. For example, a cryptocurrency with no activity on its GitHub repository is much less appealing than one with many commits each week.
Balter once again explained:
“If you can understand that stuff, you can work out it’s a business and you’ll be able to get through this [bear market] and prove you’re an actual company and not a speculative asset.”
Coinbase and Digital Currency Group were highly impressed with what they saw at Flipside Crypto. They each invested an unknown figure into the startup. Coinbase’s Emilie Choi, the vice president of corporate and business development at the firm, stated that Flipside provide a unique data set which will be in high demand from a more mature market.
Meanwhile, the DCG’s Travis Scher stated:
“Crypto exchanges and blockchain networks generate massive amounts of raw data, and the volume of such data will explode in the coming years as the technology sees broader adoption.”
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