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 last seven days were really good for the crypto space as a whole, and that is reflected in the positive performance of all the sectors we follow.
Currencies, Platforms and Tokens were able to overperform BTC and close with very significant gains. BTC halving was followed by a very sharp rebound of the market, which is additionally now not anymore focused on the much anticipated event. Therefore, gains are much better widespread between sectors than they were during the pre-halving week.
Tokens were the best sector, followed by Currencies and Platforms. Each of the three sectors performed better than BTC as already mentioned, and that was obviously reflected in a slowly decreasing level of BTC dominance.
Sectors showed a significantly lower correlation with respect to the past week, when no level was below 0.9.
Tokens posted the lowest level, with a 0.69 correlation with with Currencies and 0.74 correlation with Platforms.
Projects whose main feature is to be used as a medium of exchange have shown overall very positive results during the last seven days, with performances ranging from +5.51% to +34.71%. The median value was a positive +11.40% w/w.
Six projects even finished with a double-digit gain, with three crossing the +20% mark as well. The sector as a whole was revived from BTC not being the only focus of investors anymore. Several projects which lagged the Bitcoin movement ahead of the halving were able to gain back ground during the past seven days.
Currency projects showed an higher level of correlation with respect to last week, with an average level of circa 0.6. Beam (BEAM) and NANO (NANO) showed the lowest level in the sector again with values approaching 0.4 this time.
NANO took over the crown for BTC after two weeks of BTC dominance among Currencies. NANO closed the week with a price of 0.7945, good for an impressive +34.71% w/w return.
NANO experienced a period of relative weakness with respect to BTC and this trend was due for some reversal.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. NANO is trading on the upper end of its frequency distribution with respect to BTC during the week, meaning the momentum is still pretty strong. ZCash (ZEC) and BEAM (BEAM) are holding their ground.
The Platform category rebounded from the negative performance of the past week. Platforms performed very well on average, with results ranging from +1.28% to +51.64% w/w and a median result of +12.30 w/w
All the projects finished the week with a gain. Relatively speaking, Platforms still appear to be weaker than the past months, with Currencies enjoying a little bit more of attention among altcoins. The sector is still very healthy overall and 28 coins out of 36 finishing with a double-digit gain stress this health as much as needed.
Correlations have been lower than the past week overall, with an average level approaching 0.4. Zilliqa (ZIL) posted the lowest correlation with its peers, with a level under 0.2.
The best project of the week has been the already mentioned Zilliqa (ZIL) , which rose to 0.01016 USD with a +51.64% positive performance. The coin is experiencing a strong uptrend for weeks now and benefited from the news of a partnership between WEG Bank and Anquan Capital, the company behind Zilliqa.
Tokens were the best sector during the past seven days, with all the coins closing with a positive result. Performances ranged from +2.86% to +49.68% and resulted in a +12.17% median value, with twelve projects out of eighteen closing with a double-digit gain.
The intra-sectoral correlation has been lower than last week also for Tokens, with an average level under 0.3. OmiseGo (OMG) confirmed the trend in place this week, which saw the best performer of each group also showing the lowest level of correlation with the respective peers.
OmiseGo (OMG)) has been the best performer of the sector, closing the week at 0.9789 USD cents with a 49.78% positive performance w/w. The coin rose after the announcement of its upcoming listing on Coinbase Pro.
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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 18th 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.