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.
The Platform sector keeps rolling and bested the field also in the past seven days. However, the week was again very positive overall, with tokens and Bitcoin also in very good shape. A trend is starting to emerge, which is BTC convincingly overperforming its peers in the aggregate Currency sector. The main reason behind this trend could be the incoming BTC halving. Still, all the sectors experienced a positive week and there is no structural need to worry about currencies.
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 overall convincing results during the last seven days, with performances ranging from -6.71% to +17.73%. The median value was a good +5.7% w/w.
Beam (BEAM) and Dogecoin (DOGE) were the two projects finishing with a double-digit gain and overperforming BTC. Bitcoin was still able to overperform the majority of its peers, closing at 7677 USD, good for a 3rd place in the sector ranking, and representing a +9.32 w/w increase. Currency projects are showing some difficulty relative to BTC, which is probably benefiting from extra attention due to the incoming halving event.
Currency projects showed a significantly lower level of correlation with respect to last week, with Dogecoin (DOGE) and Beam (BEAM) reporting an unusual level below 0.5.
Beam (BEAM) had the best week among all the currency projects, rising 17.73% to 0.316 USD. The project was particularly under the spotlight this week. Indeed, Beam announced a hard fork which is expected to take place on June 28th. The hard fork will be instrumental to more developments in BEAM PoW algorithm, which will change from BeamHash II to BeamHash III.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. The already mentioned Dogecoin (DOGE) and Beam (BEAM) have done relatively good while the legacy big Litcoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH) seem to be in a weak position.
The platform category is the best horse in our race for the third consecutive week. Platforms’ performances were almost all positive, ranging from -1.78% to 27.82%. 35 currencies out of 36 in the sample had a positive week, with the median performance being a positive and even double-digit 10.78%!
Cardano (ADA), Theta (THETA), Stellar Lumens (XLM), Aion (AION), Blockstack (STX), and ICON (ICX) were also able to post performances over 20% w/w, which is just strengthening a trend already in place for weeks. Investors are clearly believing in the sector as the one more interesting in terms of technology potential and projects are appealing more than BTC’s currency rivals or tokens.
Correlations have been even lower in the platform sector with respect to currencies, with Aion (AION) showing an impressive level below 0.2, with Harmony (ONE) and Stratis (STRAT) also approaching 0.3.
The best project of the week has been Cardano (ADA), which rose to 0.045 USD with a 27.82% positive performance. The coin rose on the back of the long-awaited release of its Daedalus Mainnet Wallet. The movement was a confirmation of the already strong upward trend of last week started after the release of the updated ratings by Weiss.
Tokens also had a positive week accordingly to the general mood of the market, with all the coins closing with a positive result. Performances ranged from +0.69% to +34.25% and resulted in a +8.35% median value. Five projects were able to close with a double-digit gain and two of them were also able to cross the 20% increase mark, namely Enjin (ENJ) and Fetch.AI (FET).
The intra-sectoral correlation has been low with respect to the last weeks. FunFair (FUN) correlation was the lowest value across the board approaching 0.3.
Enjin (ENJ) has been the best performer of the sector, closing the week at 0.1335 USD cents with a 34.25% positive performance w/w. ENJ rose on the back of the announcement of some changes on its Enjin Wallet mobile app which were well received by the market, which we already mentioned in our latest weekly market cap report.
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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 27th 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.