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.
With less than 10 days to the much anticipated halving event, Bitcoin clearly overperformed the rest of our sectors during the past seven days. BTC crossed the 9000 USD mark on April 30th after crossing the 8000 USD mark on April 29th. It reached a high of 9460 USD and then fell back under 9000 USD after facing the resistance line coming from the all time high price and passing through the relative peak levels.
The catalyst was obviously the halving event. With all the attention catched by BTC, all the sectors underperformed but were still positive.
Sectors appear to be very correlated among themselves again during this week. All the sectors also appear to be pretty homogenous in terms of their components’ behavior.
Projects whose main feature is to be used as a medium of exchange have shown overall positive results during the last seven days, with performances ranging from -1.65% to +14.61%. The median value was a good +5.87% w/w, which was in line with the previous week.
Bitoin and Ripple (XRP) were the two projects finishing with a double-digit gain, with NANO (NANO) coming close. Bitcoin closed at 8797 USD, representing a +14.61 w/w increase. All the projects were positive apart from Monero (XMR), which closed with a 1.65% loss w/w
Currency projects showed an higher level of correlation with respect to last week. Beam (BEAM) reported the lowest level of correlation at 0.57 and was the only project with a level under 0.6.
As already mentioned, BTC took over the first place among currency project this week. We can expect the focus of investors to be still on Bitcoin ahead of the halving event even during the next week. It will be interesting to see if the pattern shown by BCH will be replicated by BTC after the event or not.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. All the projects are trading at the weaker side of their relative level with BTC in the past seven days and the trend is expected to continue in this week.
The platform category was the best sector apart from BTC, mirroring the past month’s trend. Platforms’ performances ranged from -6.67% to +66.54%. 26 currencies out of 36 in the sample had a positive week, with the median performance being a positive +6.80%.
Holocoin (HOT), Zilliqa (ZIL), and Theta (THETA) were also able to post performances over 30% w/w, which is very impressive even relative to the past weeks. The sector fell after BTC in terms of investors’ focus but it’s still the place to look in order to find impressive performances.
Correlations have been higher that the past week also for platforms, with HOT posting an impressive 0.14 correlation level with the field on the back of its huge rally in the second half of the week.
The best project of the week has been Holocoin (HOT), which rose to 0.000568 USD with a 66.54% positive performance. The coin was the worst project during the past week and was due for a catch-up with the platforms field.
Tokens also had a positive week accordingly to the general mood of the market, with 13 out of 18 coins closing with a positive result. Performances ranged from -3.95% to +25.32% and resulted in a +4.62% median value. Four projects were able to close with a double-digit gain and one was also able to cross the 20% increase mark.
The intra-sectoral correlation has been in line with the last weeks. Dent (DENT) correlation was the lowest value across the board approaching 0.3.
BitTorrent (BTT) has been the best performer of the sector, closing the week at 0.000301 USD cents with a 25.32% positive performance w/w. The project rose steadily during the week, reaching a market cap of nearly 65 million USD.
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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 4th of May 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.