GENERAL OVERVIEW
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 positive for the cryptocurrency market. All our size-based groups registered performance in the green, with a generally positive mood of investors about the space. Small coins were the best performers by far, with the index finishing circa seven points ahead of competitors. Bitcoin overperformed both Mid-cap and Top coins, but these three groups finished with a very similar performance overall.
The market is currently in apparently very good shape. BTC is flirting with 10’000 USD again, but this time altcoins are following. The halving was a much-discussed and anticipated event and BTC rally before it was obviously due to pure speculation in some part. The post-halving uptrend, on the other hand, seems to be much more healthy. The fear of a huge price drop post-event has been wiped out, and altcoins’ investors are enjoying the lack of danger on the horizon.
The level of correlation between the three groups was lower than the last week. Small-cap coins reported the lowest correlation level overall at under 0.7 .
TOP PROJECTS
The Top projects, i.e. our selection of projects with a high market capitalization, were the worst-performing group during the past seven days, but still registered a positive performance overall.
No coin posted a resul in the red, with two of the sixteen actually finishing the week with a double-digit gain. Overall, the results were in a range between +1.78% and +12.16%, with the median result being +5.51%, about ten percentage points better than last week. BTC was still better than the majority of its peers, with all the coins besting it being crypto platforms projects.
The intra-group correlations were lower than last week, with Cardano (ADA) and Tezos (XTZ) posting the lowest level at under 0.7.
Tezos (XTZ) had the best week among all the top projects, rising 12.16% to 2.869 USD. XTZ market capitalization is now approaching two billion USD.
Tezos partecipated with other players active in the cryptocurrency space to a meeting with the SEC. The Proof of Stake Alliance, that the name of the group, had the meeting in order to get some clarification from the SEC about laws applying to the proof-of-stake industry. Notably Cardano (ADA), the second best performer of the group, was also part of the meeting.
On the other hand, the worst performing project was NEO (NEO), which was the best performer of the group during the past week.
MEDIUM PROJECTS
Our selection of Mid-cap coins reported a good performance overall and in line with BTC and Top coins in terms of results. Their performance ranged from -1.42% to +23.07%. The median performance was a +5.62% w/w, with just two coins finishing with a negative performance.
The intra-group correlations for Mid-cap coins were significantly lower than Top coins on aggregate, with the top performing 0x (ZRX) showing the lowest level at below 0.3.
The best performing project was ICON (ICX) itself, closing the week at +23.07% w/w with a price of 0.3286 USD and around 175 million USD in terms of market capitalization. ICX had a great 2020 thus far, rising from 0.11 USD to the current 0.33 for a 3x increase YTD.
On the other hand, Ravencoin (RVN) was the worst performer of the group, closing the past seven days at 0.019 USD for a -1.42% w/w return and around 118 million USD market capitalization.
SMALL PROJECTS
Our selection of small-cap coins had the best performance for the third consecutive week, with results ranging from +0.17% to +53.98% and a median value of +6.49%. All the projects also finished the week with a positive result, with Theta (THETA) and OmiseGo (OMG) posting a performance over 40%.
The correlation between small projects was significantly lower with respect to last week, with OmiseGO, Holocoin (HOT) and Zilliqa (ZIL) posting a result below 0.2.
The best performer of the week in the group was OmiseGo (OMG), closing the period at 1.1659 for a +53.98 w/w return and a market capitalization of 165 million USD, which put it in line with our mid-cap coins. Our groups could soon need a rearrangement to better reflect the recent relative movement of the different coins.
Enjin (ENJ) was the worst performer of the week and recorded a +0.17% result and a price of 0.16679 USD.
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DISCLAIMER
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 20th 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.
