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 generally positive performance of the market, with some volatility sparkled by BTC trading over and under the 7000 USD level. At the end of the period, Bitcoin recorded a performance of +5.43% w/w, good for a close at 7065 USD. Such a good performance was pretty much in line with the one showed by medium-sized and small projects.
However, top projects overperformed BTC on aggregate, confirming a trend that is going on since the start of April and which is causing the slow but steady fall in BTC’s dominance. The coverage following the publication of updated ratings of the projects by Weiss Ratings obviously helped the top projects’ performance.
The level of correlation between the three groups was still very high during the past week.
TOP PROJECTS
As already mentioned the Top Projects, i.e. our selection of projects with a high market capitalization, was the best performing group during the past seven days. All the coins closed the period with a positive result and six coins out of sixteen reporting a double-digit gain. Overall, the results were in a range between +2.95% and +20.39%, with the median result being around +5.7%.
The intra-group correlations were pretty high on average and higher than the last week, with Tezos (XTZ) and Binance Coin (BNB) being the less correlated projects on average with a level just under 0.8.
Tezos (XTZ) had the best week among all the top projects, rising 20.39% to 2.28 USD. The coin benefits from a positive trend going on for platform projects and is now up nearly 70% since the start of the year. The projects also saw Weiss rating putting it at the top of the Technology category among crypto projects together with Cardano.
On the other hand, the worst performing project was Ripple (XRP), which was still up 2.95% in the last seven days.
MEDIUM PROJECTS
Our selection of medium-sized projects was completely in positive territory in terms of results, ranging from +0.06% to +25.69%. However, they fared worse than the top projects on aggregate, with a median level of around +4.6%.
The intra-group correlations for medium-sized projects were lower than the ones observed for the top projects, with Dogecoin (DOGE) showing the lowest level during the last seven days, approaching 0.6. On average, the projects showed a higher level of correlation than last week.
The best performing project was Zcash (ZEC), closing the week at +25.69% w/w with a price of 44.18 and around 400 million USD in terms of market capitalization, which is starting to be pretty high for the group.
On the other hand, Hedera Hashgraph (HBAR) was the worst performer of the group, closing the week at 0.032 USD for a +0.06% w/w return and around 127 million USD market capitalization
SMALL PROJECTS
Our selection of projects with the lowest market capitalization also had a good week in terms of performance, with results ranging from -3.37% to +20.66% with a median value of +2.77%. Three out of twelve projects also finished with a negative result, while the other groups saw no negative performer.
The correlation between small projects was the lowest on an aggregate level while higher than the last week, with REN (REN) approaching the level of 0.5.
The best performer of the week in the group was Enjin Coin (ENJ), closing at 0.113 with a 20.66% w/w performance. The crypto gaming platform announced some changes on its Enjin Wallet mobile app which were well received by the market.
Holocoin (HOLO), was the worst performer of the week, with a -3.37% result and a price of 0.000318 USD which leads the market capitalization down to just above 50 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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DISCLAIMER
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 22th 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.
