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.
Finally, we got there. Today was the day of the much anticipated Bitcoin halving event, which caught the attention of all investors for weeks. The event will happen around 19.30 UTC . In a classical “buy the rumor, sell the news” fashion, BTC price actually crashed over the weekend losing circa 20% of its value. It then recovered and BTC was able to finish the week with a marginal gain, but still far from the relative high.
In this context, which keeps being charachterized by an high level of volatility, Tokens were the best sector this week. Platforms and Currencies lagged both Tokens and BTC itself, finishing the week with an aggregate negative result.
Sectors showed very high correlation during the week once more, with no correlation in this matrix falling under 0.9.
Projects whose main feature is to be used as a medium of exchange have shown overall negative results during the last seven days, with performances ranging from -16.24% to +0.97%. The median value was a negative -6.47% w/w.
Four projects even finished with a double-digit loss, while the only two positive results were marginal. Bitcoin closed at 8914 USD, representing a +0.97 w/w increase. Dogecoin (DOGE) was the only other project keeping the pace reporting a modest 0.87% increase w/w.
Currency projects showed an higher level of correlation with respect to last week. Beam (BEAM) and NANO (NANO) showed the lowest level in the sector with values under 0.7.
For the second consecutive week, BTC took over the first place among currency projects. This was very much expected ahead of the halving event. Differently from the past week, however, BTC was not able to carry the whole market up with it. The Currency sector as a whole is underperforming BTC and peers are clearly suffering from the spotlight being clearly away from them.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. As expected, all the projects are trading on the weaker side of their relative value frequency distribution with respect to BTC. The only exception has been DOGE which was able to keep its ground.
The Platform category suffered for the first time since in several weeks. Platforms’ performances ranged from -15.84% to +14.11%. Only four currencies out of thirtysix in the sample had a positive week, with the median performance being a negative -8.88%.
Fifteen projects even closed the week with a double-digit loss. With respect to the last months, Platforms appear to be in a weaker position. The sector was able to overperform the others following good technology developments and investors seemingly betting on the halving being a catalyst for an good performance of the whole crypto world. However, things relatively turned for the worst even before BTC’s fall during the past week.
Correlations have been higher that the past week for Platforms, with Holo (HOT) and Zilliqa (ZIL) posting the lowest overall levels, approaching 0.5.
The best project of the week has been Harmony (ONE), which rose to 0.00275 USD with a +14.11% positive performance. The coin is updtaing its v0 mainnet before the launch of the Open Staking system from the project and benefited from additional investors’ attention because of that.
Tokens were the best sector during the past seven days, with 8 out of 18 coins closing with a positive result. Performances ranged from -17.94% to +85.27% and resulted in a -0.87% median value, with the overall performance of the sector clearly skewed by 0x (ZRX) outstanding performance. Four projects reported double-digit losses.
The intra-sectoral correlation has been slightly higher than last week. Dent (DENT) and Chiliz(CHZ) correlation were the lowest across the board approaching 0.4.
0x (ZRX) has been the best performer of the sector, closing the week at 0.3824 USD cents with an exceptional 85.27% positive performance w/w. We already covered the reason behind this performance, which happened after 0x announced weekly staking payouts and Vitalik Buterin mentioned ZRX among the projects he wants to give a try.
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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 11th 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.