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.
GENERAL OVERVIEW
The last seven days were mixed overall for the cryptocurrency market, which saw the significant bad performance of BTC.
Currencies, Platforms and Tokens were able to overperform BTC overall. Despite this, BTC dominance remained pretty much stable during the week at 65%. Some very good performers in the Tokens and Platforms sectors skewd the respective indexes’ results, which are overall not as good as the past week’s.
Tokens were the best sector, followed by Platforms and Currencies. The three aggregates showed a sensibly different performance, with Currencies finishing on par while Platforms and Tokens were clearly in the green.
Sectors showed a decreasing level of correlation with respect to the past week, with the market giving some sign of being more able to differentiate.
Tokens posted the lowest level, with an overall correlation around 0.6.
CURRENCIES
Projects whose main feature is to be used as a medium of exchange have shown mixed results during the last seven days, with performances ranging from -9.16% to +23.63%. However, the median value was a negative -5.32% w/w.
Two coins even finished with a double-digit gain, while no one registered a double-digit loss. The sector as a whole was still the worst performer among the three we consider and the overall performance of the index was even pretty skewed from top two coins’ results. Currencies are still very linked to BTC destiny and it is more difficult for them to find appreciation if BTC struggles.
Currency projects showed an higher level of correlation with respect to last week, with an average level of circa 0.7. HyperCash (HC) and NANO (NANO) showed the lowest level in the sector again with values approaching 0.4 and 0.5 respectively. NANO in particular is among the coins showing the lowest level for three consecutive weeks now.
HC was the best performing coin during the past seven days among currencies. HC closed the week with a price of 1.275, good for an impressive +23.63% w/w return.
HyperCash opened the year at 1.11 USD per coin and was therefore lagging the movement of the whole market YTD.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. It is interesting to note how legacy big projects like Ripple (XRP) and Litecoin (LTC) are pretty much following BTC, while others were able to close the week with a stronger tone.
PLATFORMS
The Platform category continued on the positive note in terms of performance of the past week. Platforms performed well on average, with results ranging from -7.65% to +106.19% w/w and a median result of +2.47 w/w, which is still about ten points lower than previous week.
22 coins out of 36 finished the week with a gain. Eight coins reported even a double-digit gain, and we had a triple-digit positive result. The sector still looks like the place where investors can find the most interesting stories in terms of technology development. Cryptocurrencies are not just a medium of exchange at this point already, and platforms are the frontrunner in showing that. Strong recent performers like Theta (THETA) and Zilliqa (ZIL) kept adding to their recent gains, with the former even crossing the +80% mark.
Correlations have been higher than the past week overall, with an average level approaching 0.5. IoTeX (IOTX) posted the lowest correlation with its peers on the back of its impressive performance, with a level under 0.2.
The best project of the week has been the already mentioned IoTeX (IOTX) , which rose to 0.00576 USD with a +106.19% positive performance. The coin, which we already discussed in a post for its low level of correlation with peers, beenfited from investors’ enthusiasm regarding its Mainnet going live on June 1st.
TOKENS
Tokens were the best sector during the past seven days, with 14 coins out of 18 closing with a positive result. Performances ranged from -14.77% to +78.27% and resulted in a +10.55% median value, with half of the coins closing with a double-digit gain.
The intra-sectoral correlation has been higher than last week also for Tokens, with an average level over 0.4. OmiseGo (OMG) confirmed the trend in place last week and registered again the lowest level in the sector, this time approaching 0, which is pretty impressive for cryptos.
OmiseGo (OMG)) has been the best performer of the sector for the second consecutive week, closing the period at 1.711 USD with a 78.27% positive performance w/w. The coin is still rising on the back of its listing on Coinbase Pro during the past week.
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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 25th 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.
