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 were the days of the halving for BTC: the market obviously waited for the event and was hugely conditioned by it. Investors hoping for an acceleration of the uptrend going on for weeks were, however, disappointed. Small projects overperformed the field once again but were just marginally positive, with Mid-cap lagging and Top projects falling behind.
During the weekend, indeed, BTC price dropped sharply falling from the 10’000 USD area to almost 8000 USD. Fast money tried to anticipate the market and sold fearing a post-halving drop. When the actual halving happened, long term holders had the party spoiled. Nevertheless, BTC slowly resumed its uptrend after that, closing the last seven days at 9110 USD with a -1.68% w/w performance. Not good, but neither a disaster all things considered.
The level of correlation between the three groups was lower than the last week but still very high. Top projects reported the lower correlation level overall at 0.88.
The Top projects, i.e. our selection of projects with a high market capitalization, were the worst-performing group during the past seven days, with an overall performance slightly worse than BTC.
Just four coins closed the period with a positive result and two projects out of sixteen reported a double-digit loss. Overall, the results were in a range between -13.33% and +9.79%, with the median result being -5.36%. The resulting performance of the group was, therefore, considerably worse than last week, which was not so brilliant to begin with excluding BTC.
The intra-group correlations were in line with last week, with NEO (NEO) and Chainlink (LINK) showing the lowest level overall in the group at less than 0.8.
NEO (NEO) had the best week among all the top projects, rising 9.79% to 10.164 USD. NEO market capitalization is now 172 million USD.
Binance added NEO to its Flexible Savings platform and the project was able to keep the positive trend going on since the last week with respect to the field. AS we highlighted in our latest Weekly Sectorial Report, NEO was somehow outshined by other platform projects in the last months. The project is now gaining back the relatively lost ground and recovered from the pre-halving fall better than its peers.
On the other hand, the worst performing project was Ethereum Classic (ETC), which was down 13.33% in the last seven days.
Our selection of Mid-sized projects reported a flat performance overall and better than BTC and Top projects in terms of results. Their results ranged from -13.24% to +65.02%. The median performance was a -2.52% w/w, with the overall one heavily influenced by 0x posting an impressive +65.02%.
The intra-group correlations for medium-sized projects were lower than last week on aggregate, with the top performing 0x (ZRX) showing the lowest level, approaching 0.3.
The best performing project was 0x (ZRX) itself, closing the week at +65.02% w/w with a price of 0.3533 USD and around 231 million USD in terms of market capitalization. We spoke plenty about 0x already in our previous reports and in a comparative analysis, stressing how the project has benefited from some good headlines recently, being also mentioned by Ethereum’s Vitlalik Buterin as an interesting project.
On the other hand, Hedera Hashgraph (HBAR) was the worst performer of the group after being the best on the past week, closing the past seven days at 0.03545 USD for a -13.24% w/w return and around 143 million USD market capitalization.
Our selection of projects with the lowest market capitalization had again the best week in terms of performance, with results ranging from -9.22% to +18.92% with a median value of +1.15%. Half of the projects also finished the week with a positive result, with two of them finishing with a double-digit w/w increase.
The correlation between small projects was higher on an aggregate level with respect to the last week, with Theta (THETA) and Zilliqa (ZIL) posting the lowest level at sub 0.5
The best performer of the week in the group was Theta (THETA), closing at 0.176 with a +18.92% w/w performance and benefiting from some media exposure. The project’s market capitalization is now more like a Mid-cap project after the recent uptrend at 148 million USD.
BitShares (BTS), was the worst performer of the week and recorded a -9.22% result and a price of 0.018 USD, which leads the market capitalization down to 51 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 13th 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.