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 saw a mixed cryptocurrency market, which was actually split in half. Bitcoin and Top coins underperformed the rest and registered a negative performance on aggregate. On the other hand, Small and Medium coins saw a very good performance in the last seven days, the first in particular.
Bitcoin’s weakness is spreading to the other top coins, even if BTC actually results in the worst performer of the whole group. The market is not, however, in an unhealthy phase overall. Total market capitalization excluding BTC is up circa 7 billion USD in the last month, and this reflects the attention of investors for other promising projects in the space.
The level of correlation between the three groups was lower than the last week on aggregate. Small-cap coins reported the lowest correlation level among our groups at under 0.5 .
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 a negative performance overall.
Just four coins out of sixteen registered a positive result, with three of those not even crushing 1% w/w. Overall, the results were in a range between +-3.44% and +5.74%, with the median result being -1.35%, about six percentage points worse than last week. All in all, the overall performances were not so significant in absolute value.
The intra-group correlations were in line with than last week, with NEO(NEO) posting the lowest level approaching 0.7.
Ethereum Classic (ETC) had the best week among all the top projects, rising 5.74% to 6.77 USD. ETC market capitalization is now approaching 790 million USD.
Ethereum Classic has a scheduled hard fork for the first days of June, which will happen in order to allow a network upgrade for the projects. The so-named Phoenix hardfork will allow also complete compatibility between Ethereum and Ethereum Classic.
On the other hand, the worst performing project was Bitcoin (BTC), which was still able to close the week above 9’100 USD.
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 -7.08% to +68.47%. The median performance was a +5.77% w/w, which is in line with the one reported last week. Please keep in mind that the group has now four new members which used to be among Small coins, namely THETA (THETA), OmiseGo (OMG), Zilliqa (ZIL), and Enjin (ENJ). The recent very good and consistent performance of these coins pushed them above the dynamic threshold needed in order to enter the group of Medium coins for a sufficient amount of time now.
The intra-group correlations for Mid-cap coins were significantly lower than Top coins on aggregate, with OmiseGo (OMG) showing the lowest level approaching 0.
The best performing project was Theta (THETA), closing the week at +68.47% w/w with a price of 0.40 USD and over 320 million USD in terms of market capitalization. THETA is rising for weeks now, with its Mainnet launch scheduled for today and collaboration with Google Cloud confirmed during this week.
On the other hand, 0x (ZRX) was the worst performer of the group, closing the past seven days at 0.333 USD for a -7.08% w/w return and around 220 million USD market capitalization.
Our selection of small-cap coins had the best performance for the fourth consecutive week, with results ranging from -0.39% to +72.16% w/w and a median value of +11.04%. All the projects but two also finished the week with a positive result, with IoTeX (IOTX) finishing with an over 70% raise.
The correlation between small projects was slightly higher than last week, with the new entry IOTX posting the lowest level at circa 0.2.
The best performer of the week in the group was IOTX itself, closing the period at 0.00512 for a +72.16 w/w return and a market capitalization of 27 million USD. IOTX was among the coins featured in our Weekly Sectorial Report and is also among the coins entering our Small coins group this week in order to fill the void left by the projects now classified as Medium.
Monaco (MCO) was the worst performer of the week and recorded a -0.39% result and a price of 5.397 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 27th 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.