It looks like Apple may have adjusted the ranking algorithm behind the App Store recently, propelling apps like Facebook, Angry Birds and other high-rated apps to the top of the list.

“We’ve been noticing changes in the Top Free rankings for at least three days now,” said Peter Farago, vice president of marketing at Flurry, which serves 80,000 applications with its analytics product. “From our point of view, Apple is absolutely considering more than just downloads, which we believe is the right direction go to measure true popularity of an app.”

Apple is reportedly taking user engagement and app ratings into consideration when ranking apps, instead of only their download numbers. This should be a good thing for standout apps and will make sure more popular and engaging apps reside at the top of the list more often. It will also be beneficial for consumers by encouraging developers to build better apps, which is never a bad thing in our book!

Have you noticed any other great apps moving up the top app lists? Let us know in the comments!

[Inside Mobile Apps]