Developing Cryptocurrencies and Ecosystems

In our latest insight, we're checking in on some of the trends of various ecosystems in terms of their development activity. If you haven't yet explored the Development Activity dashboard, you can find lots of great information related to which blockchains are seeing the most growth among the many coins that utilize their technology.

With this dashboard, we can see trends of different ecosystems, directly comparing their development rates against one another. Often times, we may see one generating a bigger and bigger lead thanks to just a few assets. It's no surprise to see Ethereum's ecosystem continuing to lead by a wide margin.

But perhaps this trend is being aided by the fact that ALL of the top 10 developing individual projects have crossover with Ethereum:

Over the past 6 months, Solana is the that appears to be standing out in the top 10 ecosystems as the one that is seeing the most overall growth in development activity events over the past six months. But from a contributor perspective, Optimism is the only ecosystem that is seeing an increase in contributors during this timeframe.

And if we switch the perspective and zoom in to just the past one month, it's actually a bit discouraging to see that every ecosystem in the top 10 has taken their foot off of the gas. Development activity events have declined across the board, with only Cosmos and Solana seeing a rise in contributors.

Browsing through the entire list of ecosystems, we do see some standouts, though. Here are the list of ecosystems seeing the highest rises in dev. activity events over the past month:

• Rollux +246.9%
• OraiChain +135%
• OEC +141.3%
• BeamPrivacy +138.5%
• Sei +82.6%
• Sui +73.9%
• Nervos +72.0%
• Tron +71.5%
• Loopring +48.5%
• Fuse +37.5%
• Casper +29.8%
• Celo +27.6%
• Flow +18.5%
• Kava +17.8%
• Canto +17.8%

And don't forget that you can always cross-reference individual projects on Sanbase to see what their development activity trends are looking like over time. Chainlink's rate of development activity is exactly what you want to see over time. Continued growth from a dedicated team that is trying to innovate, improve, and keep up with modern expectations of what is demanded out of a cryptocurrency.

Not all projects will look like this, in terms of growth trajectory. LINK is the leader of ALL cryptocurrencies, after all. But in general, when you see development rising over time, regardless of whether markets (and the individual coin) are in a bull or bear cycle, it is generally a promising sign that the asset is here for the long run.

If you are a long term investor, in particular, we recommend checking out where your coins stand in terms of development activity. If they have little or no activity, or take breaks from development when prices are going down, that's a warning sign. And further, see if it is under the umbrella of an ecosystem that is on a nice development trajectory in its own right. It may not be a short-term correlation, but projects with rising development consistently rise up the market cap ranks over enough time passing.

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Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.