In this report, we try to provide an overview of the crypto market during the last week with a different focus with respect to our other analyses. The focus will indeed be on market capitalization and based on this parameter the projects have been divided into three groups: top, medium and small*. For each category, we provide insights about the overall performance of the group, the correlation between the various group components and a special focus on the best/worst performing projects of each group.
The last seven days saw a general negative performance of the market, which naturally suffered from BTC’s weakness. The biggest coin in terms of market capitalization recorded indeed a performance of -7.6% w/w, good for a close at 6724 USD. However, it is possible to see from the graph above that both top and medium-sized projects overperformed BTC on aggregate, with only small projects lagging behind. Bitcoin is still failing to gain traction less than one month before its halving event and the past week’s performances reflect this.
Small projects were not able to beat BTC on aggregate. The current downtrend of BTC’s dominance, therefore, can be ascribed to value being recognized in the developments of blockchain technology being carried on by the most structured and organized projects.
The level of correlation between the three groups is still high, with the lowest level being registered between medium and small projects at 0.86.
As already mentioned the Top Projects, i.e. our selection of projects with a high market capitalization, did not perform well during the past seven days. All these coins closed the period with a negative result, with the only exception of Chainlink (LINK), which we already saw as the top performer between platform projects recently. Overall, the results were in a range between -16.6% and +9.10%, with the median result being around -7.7%.
The intra-group correlations were pretty high on average, with LINK and DASH (DASH) being the less correlated projects on average with a level around 0.7.
Chainlink (LINK) had the best week among all the top projects, rising 9.10% to 3.13 USD. The coin confirms the positive trend we already identified in our other reports and is now well over 1 billion USD in terms of market capitalization at around 1.107 billion, just one position shy of the overall top-10.
On the other hand, the worst performing project was Bitcoin Cash (BCH), which has not performed well at all after its halving event of the past week.
Our selection of medium-sized projects was completely in negative territory in terms of results, ranging from -11.64% to -0.59%. However, they fared better than the top projects on aggregate, with a median level of around -5.3%.
The intra-group correlations for medium-sized projects were lower than the ones observed for the top projects, with WAVES (WAVES) showing the lowest level during the last seven days, accordingly with the data for the last month. On average, the project had a correlation of around 0.34 with the other medium-sized projects, which is a pretty low level for a cryptocurrency in general with respect to its peers.
WAVES was also the best performing project, basically closing the week on par at -0.59% w/w at 0.98 and around 100 million USD in terms of market capitalization.
On the other hand, Qtum (QTUM) was the worst performer of the group, closing the week at 1.32 USD for a -11.64% w/w return and around 127 million USD market capitalization
Our selection of projects with the lowest market capitalization has been the worst group in terms of performance, with results ranging from -14.43% to -3.2% with a median value of -9.59%. Five out of twelve projects of the group realized a double-digit negative performance, a good representation of the weakness of the group.
The correlation between small projects was the lowest on an aggregate level, with Mithril (MITH) and BitShares (BTS) reporting levels under 0.5 at 0.37 and 0.46 respectively.
The best performer of the week in the group was REN (REN), closing at 0.049 with a -3.2% w/w performance. Despite this week’s performance, the project is still up almost 100% from the lows of March and its market capitalization is at around 42 million USD.
Blockstack (STX), was the worst performer of the week, with a -14.43% result and a price of 0.0872 USD which leads the market capitalization down to 34.6 million USD.
* The groups have been identified based on their market capitalization and monitored for several days in order to stress their consistency. Groups’ cutoffs in terms of Market Capitalisation have been determined in order to maintain homogeneity in terms of market capitalisation and numerosity between groups. Given the changing market conditions, cutoffs could change over time as well as members of each group.
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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 14:00 UTC on the 15th 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.