FCAS 25

Tracking the overall health of the crypto industry

The FCAS 25 tracks the fundamental scores of the top 25 projects over time.

Learn more about FCAS

The score itself is a time-weighted moving average of the FCAS for the members of the top 25. To be included in the top 25, a project must be ranked inside the top 25 FCAS ratings for at least 40 days

The approach allows for an entirely algorithmic definition, and avoids the many pitfalls of managing manual inclusion/exclusion from the list.

May 4, 2020

Tether and Kyber Network Join the Top 25 Projects

Who is in, who is out?

Members of the FCAS 25 are reevaluated each month and must be ranked within the top 25 for at least 40 days to qualify. Today, a new set of members was released with a number of significant changes. This month, Kyber Network (KNC) and Tether (USDT) are new to the list, replacing NEM (XEM) and IoTeX (IOTX).

This market needs Tether, so Tether is trusted

In what’s become the new normal since early 2019, Tether boasts the highest daily trading volume of any cryptocurrency, with almost $60B traded daily, while Bitcoin remains at $45B in second place. Not only is Tether a stablecoin, which means it is pegged 1-to-1 with the USD, but it also has a much stronger liquidity, with 6.4 billion USDT currently in circulation, compared to 18 million Bitcoin.

Our own research confirms what many headlines are saying: USDT is used by Chinese traders who move money between exchanges quickly to take advantage of arbitrage opportunities. For Chinese merchants who work abroad, they also use the stablecoin to move large sums back to China, which has strict capital controls. A CoinDesk article from July 2019 revealed Chinese importers in Russia are buying up to $30 million a day of Tether from Moscow. The question of whether USDT is fully backed 1:1 with dollars has not fazed Chinese clients, who have confidence in Tether’s solvency due to long-time habit and convenience.

Kyber Network Sees Surge in Investor Interest

Kyber Network is an on-chain exchange that allows instant trading and conversion of cryptocurrencies and tokens with high liquidity. KNC is an Ethereum token that fuels operations on the decentralized exchange (DEX).

Our data shows a spike in KNC FCAS in the past two weeks, up 35-points (4.32%) due to a 70-point climb in User Activity(8.96%).

This could be attributed to the upcoming protocol upgrade,Katalyst, which will allow KNC holders to earn yield by staking their tokens. In layman’s terms, this is similar to earning interest on a fixed income investment like bonds.

The key difference between Kyber and other DEXs’ staking mechanisms is that KNC holders will only earn rewards if they vote on network issues on the new KyberDAO (decentralized autonomous organization), which is to launch simultaneously with the Katalyst upgrade. “The fact that holding KNC will allow investors to participate in developing the protocol could also be a prominent reason for the rise in addresses with KNC balances,” said John Ng Pangilinan, managing partner at Signum Capital, which is an investor in Kyber Network.

Current FCAS 25 assets as of April 1, 2020