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Analysts explain why developer activity is important to consider when evaluating crypto projects and compiling an investment portfolio
Santiment named the top 10 cryptocurrencies by developer activity over the past 30 days. To compile the rating, the analytical company uses data on the number of changes (commits) made to the project code on the Github developer platform, excluding scheduled updates. Publishing the rating on Twitter (the social network is blocked in Russia), Santiment analysts called this information very important to take into account when compiling an investment portfolio.
Rating of projects by activity on Github (1st to 10th place):
1. Polkadot (DOT) – 441 commits
Polkadot is a system that brings different blockchains together and allows them to interact. The main goal of the project is to create a single financial space without borders within the multi-blockchain. The developers have implemented the ability to create independent networks based on the system, called parachains.
The DOT token is ranked 14th among cryptocurrencies by market capitalization with a value of $7.5 billion and a daily trading volume of more than $306 million, according to CoinGecko. Over the past 24 hours, the price of the token has fallen by 5.6%, but over the month, the Polkadot cryptocurrency rate has grown by 40% from $4.48 to $6.27.
2. Kusama (KSM) — 441 commits
Kusama is a “test” network of the Polkadot blockchain that runs in parallel with the main network. Kusama acts as a decentralized testing ground where blockchain developers can create their own products and test the capabilities of the Polkadot protocol in a real environment. But at the same time, the Kusama network functions as a full-fledged blockchain, it is a separate and independent ecosystem with its own tokens and projects.
The KSM token has a market capitalization of $304 million, the trading volume for the last 24 hours was $25.4 million. In 24 hours, the coin fell by 6.4%, over the month its rate increased by 33% from $25.79 to $33.72.
3. Cardano (ADA) – 337 commits
Cardano is a blockchain designed for developing smart contracts and creating decentralized applications (dApps). The project was founded by two former Ethereum developers – Charles Hoskinson and Jeremy Wood. The internal currency that is used in the Cardano network was named ADA in honor of Ada Lovelace, who is considered the first programmer in history.
The project’s token ranks 8th among all cryptocurrencies by market capitalization ($12.6 billion), the daily trading volume of the coin over the past 24 hours is $393 million. $0.25 to $0.36.
4. Decentraland (MANA) – 309 commits
Decentraland is a virtual reality platform or metaverse powered by the Ethereum blockchain. Users explore the virtual world and create digital content in it.
The coin of the MANA project has a market capitalization of $1.2 billion, the trading volume over the past day is $220 million. The token rate dropped by 6.9% in 24 hours, the growth for the month was 109% (from $0.32 to $0.67)
5. Status (SNT) – 308 commits
The Status Network is a messaging platform that allows users to interact with various DApps on the Ethereum network. Status (SNT) is a management token in the Status Network.
SNT has a market capitalization of $103 million and a daily trading volume of $14.8 million. Over the past 24 hours, the token has fallen in price by 3%, and has increased in price by 30% in a month (from $0.02 to $0.026)
6. Cosmos (ATOM) – 258 commits
Cosmos is a decentralized ecosystem of interconnected independent blockchains running on the Tendermint Core protocol. The goal of Cosmos is to create an “internet of blockchains” – a network of blockchains whose participants can interact in a decentralized manner.
The ATOM ecosystem token has a capitalization of $3.7 billion with a daily trading volume of $179 million. The coin fell by 3.2% in a day, grew by 30% in a month from $9.7 to $12.71
7. Filecoin (FIL) – 252 commits
Filecoin is a decentralized data storage blockchain platform with built-in economic incentives for users. You can become a Filecoin user by paying for the storage of your files on the network. If you add your own data storage equipment to the network, you can receive rewards in FIL tokens.
This coin has a capitalization of $1.8 billion, the trading volume over the past day is $204 million. The token has fallen in price by 6% in 24 hours, but has grown by 71% over the month from $2.96 to $5.08.
8. Internet Computer (ICP) – 220 commits
Internet Computer is a blockchain network created to extend the functionality of the Internet. The project is hosted on a network of computers distributed around the world and provides an environment for supporting the operation of smart contracts at a speed comparable to the speed of the Internet. The network features are suitable for building mass media services, decentralized finance applications, and other Web3 projects.
ICP is a functional token that makes the platform work, it also plays the role of a governance token. The asset has a market capitalization of $1.6 billion, a daily trading volume of $45 million. Over the past 24 hours, the token has fallen in price by 4.3%, over the month it has grown by 45% from $3.88 to $5.66.
9. Ethereum (ETH) – 219 commits
The developers of the leading altcoin continue to actively work on the blockchain, which includes the Vitalik Buterin network in the Santiment rating. The trading volume of a cryptocurrency with a capitalization of $186 billion amounted to $10.4 billion over the past day. Over the past day, the coin has fallen in price by 4.6%, over the month the ETH rate has grown by 27% from $1.22 thousand to $1.55 thousand.
10. Concordium (CCD) — 205 committees
Concordium is a layer 1 blockchain that supports smart contracts with high transaction speeds. The network provides the identification of participants at the protocol level, as well as confidentiality based on cryptographic methods.
CCD is Concordium’s native token and is used to pay network fees. The market capitalization of the asset is $48 million, the daily trading volume is $667 thousand. In 24 hours, the token lost 2.4% in price, over the month its rate dropped by 12.5% from $0.008 to $0.007.
Why is it important to take into account the activity of developers for project evaluation
Santiment has developed its own methodology for evaluating developer activity in order to avoid taking into account actions on the platform that do not lead to real improvements. Methods include counting the number of changes in the code, the number of interactions with issues raised in code comments, the number of edits in reference materials, and the number of comments and repositories.
The activity of developers on GitHub is an important metric when analyzing ICOs and crypto projects, according to Santiment. They argue that developer time is a relatively expensive resource, and if a project has many active participants, this is a factor that the founders believe in its success, and the risk of fraud on their part is minimal.
Analysts additionally clarify that with enough money it is possible to “imitate the activity” of developers, but as a rule, fraudsters do not spend money and effort on this. Also, spoofing developer activity will be obvious to those who check out GitHub, which will greatly compromise the project.
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