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 into 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.
Sectors appear to be very correlated among themselves as one would expect, with no correlation falling under 0.75. All the sectors also appear to be pretty homogenous in terms of their components’ behavior with some more variability in the token and currency ones.
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 -1.5% to +30.66%. To be fair, ZCash (ZEC) was a 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 -1.5% to +30.66%. To be fair, ZCash (ZEC) was a clear outlier, with no other project closing even with a double-digit gain. BTC was able to overperform the majority of its peers with the halving event approaching, closing at 7023 USD, good for a 4th place in the sector ranking.
Zcash (ZEC) had again the best week among all the currency projects, rising 30.66% to 45.9 USD. After its surge of the last week due to the possibility that Bitstamp would list it, the coin is still enjoying positive momentum. The project also released an update on its activities which was well-received, describing activities being implemented regarding its consensus compatible note client Zebra and ongoing research on privacy enhancements.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. The already mentioned ZCash (ZEC) and Monero (XMR) have done relatively good while HC and BEAM were pretty weak.
The platform category generally had a better week than currencies and a very positive one on average, with performances ranging from -0.51% to 20.23%. 33 currencies out of 36 in the sample had a positive week, with the median performance being a positive 5.91%. Despite being already the best sector during the last week, platforms confirmed its position, with some big projects like Tezos (XTZ), Ethereum (ETH) and EOS (EOS) being able to finish with a double-digit gain and catching the attention of investors possibly looking for long term technology potential more than short term speculation driven by BTC and its halving event.
Correlations have been lower in the platform sector with respect to currencies, with Stratis (STRAT) and NULS (NULS) showing the lowest level across the spectrum at around 0.3.
The best project of the week has been TomoChain (TOMO), which rose to 0.318 USD with a 20.23% positive performance. The coin rose on the back of the news that Binance is going to support TOMO staking and distribute TOMO staking rewards.
Tokens also had a positive week accordingly to the general mood of the Tokens also had a positive week accordingly to the general mood of the market, with performances ranging from -3.16% to +18.16% and a +3.96% median value. This category is less homogenous than the other two and is inherently more subject to the performance of the top projects barring major developments. In this context, two projects were able to report a double-digit increase, namely REN(REN) and Enjin (ENJ).
The intra-sectoral correlation has been pretty high but not as much as in the other sector, with Mithril (MITH) showing the lowest value across the board along with Cortex (CTXC), consistently with what we observed last week.
Ren (REN) has been the best performer of the sector, closing the week at 0.059 USD cents with an 18.16% positive performance w/w, on the back of the introduction of new members in its DeFi alliance group and update in its ecosystem.
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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 20th 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.