CoinMarketCap, the cryptocurrency market data platform adds a new metric, dubbed as the Fundamental Crypto Asset Score (FCAS) to their site that will measure the fundamentals of cryptocurrency projects.
The new rating will measure the “health” of cryptocurrency projects by comparing their user activity, developer behaviour, and market maturity. The service will basically provide insight into the overall growth and development of a project:
“We intake raw blockchain data across relevant projects and parse them internally. Once we clean, analyze, and recreate the raw data elements, we combine them with market data gathered from various sources to inform our models.”
The user activity will consider all customer behaviour for a specific cryptocurrency and comprises project utilization and network activity factors. The score is calculated on the bases of activity within a particular blockchain and labelling wallet addresses to determine the number of users, exchanges, contracts, and other types of participants.
The developer behaviour will indicate the level of activity and efficiency of a development community on a specific blockchain or project. It will compromise factors such as code changes, code improvements, and community involvement. The benchmark tracks 30 variables in order to further explore the relations between traditional developer metrics and community activity.
The last criterion is market maturity, which will be sourced from risk and money supply factors. In general, the metric will represent the likelihood of a crypto asset to provide consistent returns across various market scenarios by combining assessments of market risk and an analysis of the stability of the money supply of each tracked cryptocurrency.
Industry players in the likes of American cryptocurrency exchange Coinbase, venture capital firm Digital Currency Group, and Silicon Valley-based venture capital firm True Ventures among others, are backing the project.
At the press time, leading cryptocurrency Bitcoin (BTC) has a health of 885 from the scale of 1–1,000 health points, while Ethereum (ETH) is with 909 health points. Ripple (XRP), the third largest coin by market capitalization earned 751 points on the health scale. Earning an “F” letter grade on the scale, Stablecoin Tether has the health of 437.
Image source – CoinSpice