The development activity in the crypto sector (measured as the projects completed in the public GitHub repositories) is a reliable indicator for many short-term investors, and its April edition offers a number of unexpected insights for crypto analysts.
Top-Developing Assets: General Overview
According to the blockchain analytics company Santiment, development activity constitutes one of the most significant measures for crypto investors. This indicator is informative about the business proposition being made; the likelihood of new features and functionality being added; and minimizes any scam-related risks.
In most cases, the medium-term price dynamics of a specific crypto asset can be reliably predicted with the help of the current level of its development activity. The latest April data shows that the most trending sectors include interoperability (such projects as Polkadot and Kusama) and smart contracts (Cardano and Ethereum).
However, the top-3 trending assets belong to other segments. Thus, the current leader is Uniswap that offers decentralized exchange services and some DeFi functionality. The second most actively developing asset is Solana, a blockchain network that specializes in innovative proof-of-stake solutions and scalability maximization.
The third most actively developing project is Status, an Ethereum-based pocket that integrates a cryptowallet, messenger, and Web3 app. Other crypto projects with high development activity include Filecoin, Chainlink, and IOTA. By forming a portfolio from such assets, crypto investors can receive returns above average, while maintaining the overall market risk at the low level.
Causes of Uniswap’s Leadership
There are several major factors that explain Uniswap’s current leadership in the dynamics of development activity and the overall support of the project demonstrated by the broader community.
The first one is the growing demand for decentralized exchanges, following the increasing government and regulatory pressure experienced by many crypto traders and members of the crypto community.
Moreover, the functionality and trading opportunities offered by DEX tend to become even more extensive as compared with traditional centralized alternatives. The second one is the establishment of a new crypto ventures wing by Uniswap in an attempt to attract more developers.
The company utilizes the current “crypto winter” for investing in the improvement of its functionality to gain additional strategic competitive advantages that can be effectively transformed into higher profits in the long term.
Solana is traditionally widely supported by developers with their main focus remaining on increasing the platform’s reliability and sustainability in the current uncertain market environment. Status is the only project beyond Top-100 cryptocurrencies that is among the most actively developing crypto projects at the moment.
Despite the downtrend in the second half of 2021, Status continues investing in innovations, and it can potentially benefit from Ethereum’s transition to Ethereum 2.0 that should be completed this year.
Growth Potential of Most Developing Crypto Projects
Many of the top-developing altcoins demonstrate a high potential for price growth in the long term, indicating the “buy the dip” opportunities. Thus, UNI’s current price is $9.52 that constitutes a 0.8% decline within the last 24 hours and 4.4% decline within the past week. The application of technical analysis may be helpful for determining the major price growth opportunities that can be realized.
The major support level is at the price of $7.8 that constitutes the local minimum of the past three months. At the present moment, UNI follows the horizontal correction channel, but the recent development investment can facilitate the token’s price restoration in the following weeks. The key resistance level is at the price of $13 that has been historically tested and proven significant. In case UNI successfully exceeds this level, it will target the price level of $16.2. Overall, the current situation is promising for medium-term investors, considering UNI has successfully reversed its negative trend.
Solana is also down 1.4% and 8.6% for the 24-hours and 7-days timeframes respectively. Although most investors neglect the development indicators, SOL can also appreciate significantly based on technical analysis, thus challenging XRP’s 6th position in the market capitalization list. Only Status demonstrates the price appreciation of 4.2% and 6.0% for 24 hours and 7 days respectively. Despite its current growth, it still has a potential to appreciate further, especially if supported by Ethereum’s price growth. The investment portfolio formed from the top-developing altcoins may also be reasonable for strategic investors under the present conditions.