In this report, we try to provide an overview of the crypto market during the last week with a particular focus on three main categories of cryptocurrency projects: currencies, platforms and tokens. For each category, we provide insights about the overall performance of the sector, the correlation between the various sectorial components and a special focus on the best/worst performing projects of each sector.
This week saw a clear overperformance of the Platform sector according to our indexes, while currencies and tokens performed in line with Bitcoin. While BTC is still clearly the main driver of the market, its dominance is in a downward trend and platforms are benefiting the most, as we also mentioned in our main market report this week.
Sectors appear to be very correlated among themselves, with no correlation falling under 0.75. All the sectors also appear to be pretty homogenous in terms of their components’ behaviour with some more variability in the platform one.
Projects whose main feature is to be used as a medium of exchange have shown a good amount of variability in terms of performance the past week, with results ranging from -12% to +8.69%. BTC has not had a particularly impressive week, barely increasing its price, which resulted also in moderate enthusiasm in the currency sector and no project closing with a double-digit gain.
Currency projects show a relatively high amount of correlation, with NANO (NANO) and Ankr (ANKR) reporting the lowest number across the board during the past week.
Zcash (ZEC) had the best week among all the currency projects, rising 8.69% to 35.76 USD. The coin rose on the back of the news that Bitstamp could list it, which is impressive given the recent poor success of other privacy-focused projects.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. Ripple (XRP) and Monero (XMR) have done relatively good while ANKR was pretty weak.
The platform category comprises a higher number of currencies which generally had a better week than currencies, with performances ranging from -14.71% to 38.47%. 22 currencies out of 36 in the sample had a positive week, with the median performance being a positive 2.13%. Platforms are the better performing category, with the market starting to appreciate more and more the developments this kind of projects bring in terms of technology and potential.
Correlations have been lower in the Platform Sector, with IoTeX (IOTX), NULS (NULS), Waves (WAVES) and VeChain (VET) showing the lowest level across the spectrum.
The best project of the week has been Chainlink (LINK), which rose to 3.15 with a 38.47% positive performance. The coin will be listed on the Gemini exchange and this provided more fuel to the rally going on since the price minimum touched in March.
Tokens nearly had a perfectly even week, with performances ranging from -9.83% to +9.46% and a -0.45% median value. The projects are inherently very different and this is, therefore, pretty surprising. Tokens tend to follow the general market trend on aggregate, however, a double-digit gain or loss is generally to be expected. Still, this week has been pretty quiet.
Again, the correlation has been pretty high in the sector, with Mithril (MITH) showing the lowest value across the board along with CTXC, which we analysed in another post this week.
0x (ZRX) has been the best performer of the sector, closing the week at 16.88 cents with a 9.46& positive performance, but differently from other projects in the market is trading below the level reached during the BTC fall in March.
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The views expressed in this report reflect the analysts’
personal views about the cryptocurrencies subject of the
report. These views may change without notice and are
subject to market conditions. The report is prepared for
information purposes only and by no means constitutes a
solicitation to investment or disinvestment. All the data are
taken from Binance at 19:00 UTC on the 11th of April 2020. USD
and USDT are used interchangeably for illustration purposes.
All the presented valuations, indicators, and analyses are
subject to errors. The report is for personal use only and should
not be republished or redistributed.