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 the market split in two halves. Bitcoin moved up and had a good week, with Small-cap projects following it. At the same time, Medium cap and Top projects had an overall negative week, outshined by their more “extreme” peers.
During the past week, BTC crossed the 9000 USD mark and traded around that level for the major part of the week. The halving event is approaching and BTC is technically facing possibly the most significant dynamic resistance there is. The focus of the market is almost everything on BTC halving event and BTC’s price trend will tell if we are heading to a new golden age for cryptos or if hard times are waiting for us.
The level of correlation between the three groups was very high during the week, with Top and Mid-cap correlation at 0.95
On the other hand, Small projects were less correlated with the other groups, settling at 0.78 with respect to both.
The Top projects, i.e. our selection of projects with a high market capitalization, were the worst-performing group during the past seven days, on par with the Mid Cap ones.
Overall, these projects were down circa 2.5 points in the last seven days. Just four coins closed the period with a positive result and twelve coins out of sixteen reported a loss, albeit none in double-digit. Overall, the results were in a range between -7.30% and +7.59%, with the median result being -2.67%.
The intra-group correlations were higher than last week, with Ethereum Classic (ETC) and Chainlink (LINK) showing the lowest level at 0.75.
As already mentioned, Bitcoin (BTC) had the best week among all the top projects, rising 7.59% to 9230 USD. BTC market capitalization is approaching 171 billion USD.
We highlighted several times in our last reports how the halving event is catching the attention of all investors, not only those already used to cryptocurrencies. At the same time, BTC is facing the dynamic resistance passing through all its all-time and relative peaks. Therefore, two huge games are been played here, and BTC needs to win both for all the cryptos to dramatically improve their short term price expectations.
On the other hand, the worst performing project was EOS (EOS), which was down 7.3% in the last seven days.
Our selection of Mid-sized projects performed negatively overall and in line with Top projects in terms of results. Their results ranged from -8.91% to +17.52%. They fared slightly better than the top projects on aggregate, with a median level of around -4.15%.
The intra-group correlations for medium-sized projects were also higher than last week on aggregate, with Hedera Hashgraph (HBAR) showing the lowest level, approaching 0.4.
The best performing project was as well Hedera Hashgraph (HBAR), closing the week at +17.52% w/w with a price of 0.04 USD and around 166 million USD in terms of market capitalization. Hedera launched its “Hedera hackathon” event during the past week, with new tools being presented for developers.
On the other hand, Algorand (ALGO) was the worst performer of the group, closing the week at 0.205 USD for a -8.91% w/w return and around 145 million USD market capitalization.
Our selection of projects with the lowest market capitalization had the best week in terms of performance, with results ranging from -3.41% to +48.47% with a median value of +2.375%. Half of the projects also finished the week with a positive result, with three of them reporting an over 30% w/w increase and therefore skewing the overall performance of the group.
The correlation between small projects was the lowest on an aggregate level and in line with the last week, with Holocoin (HOT) correlation being under 0.2.
The best performer of the week in the group was Zilliqa (ZIL), closing at 0.00775 with a +48.47% w/w performance. The platform project rose on the back of the release of the upgraded version of its mainnet, which happened on May 5th.
Ren (REN), was the worst performer of the week and recorded a -3.41% result and a price of 0.068 USD, which leads the market capitalization down to almost 59 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 15:00 UTC on the 6th 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.