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 positive overall for the cryptocurrency market, with all our sectors registering a positive performance over the period.
Currencies and Platforms were able to overperform BTC, while Tokens ranked last and marginally underperformed it. Platforms’ performance was mainly due to two coins offering a very positive result overall, and thus skewing the result. That said, Platforms gut us used to that behavior in the last months and were coming from a relatively quiet period, so this performance was due to happen first or then.
Tokens were the best sector during the previous week, reflecting a market dynamic which saw relatively small projects overperforming the biggest ones. This week biggest projects performed better and Tokens naturally fell behind.
Sectors showed a significantly lower level of correlation with respect to the past week.
Tokens posted an unusually low level overall, with a correlation under 0.2 both with Currencies and Platforms.
Projects whose main feature is to be used as a medium of exchange have shown convincingly positive results during the last seven days, with performances ranging from +2.29% to +19.37%. The median value was a positive +6.75% w/w, up more than ten percentage points with respect to the past wee..
Two coins finished with a double digit gain, namely Beam (BEAM) and Zcash (ZEC). No coin reported a negative result and all the sector benefited from the good performance of BTC, which was up 8.44% w/w and keeps showing resiliency after being rejected multiple times at 10’000 USD.
Currency projects showed a lower level of correlation with respect to last week, with an average level of under 0.6. Beam (BEAM) and NANO (NANO) showed the lowest level in the sector again with values under 0.4. NANO is distinguish himself as a consistent provider of low correlation with the peers, being featured here for the fourth consecutive week.
Beam was the best performing coin during the past seven days among currencies. BEAM closed the week with a price of 0.4233, good for an impressive +19.37% w/w return.
The project released the version 5.0 of its mainnet through a hard fork and thus introduced several developments like support for confidential assets and Lelantus, a new protocol for private financial transactions.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. Beam (BEAM) is joind by Litecoin (LTC) and Zcash (ZEC) in the group of projects trading more favorably with respect to BTC.
The Platforms category improved on the positive note in terms of performance of the past week and bested the field this time. Platforms performed well on average, with results ranging from -26.68% to +49.74% w/w and a median result of +8.04 w/w, which is about five points higher than the last week.
33 coins out of 36 finished the week with a gain. 17 coins, i.e. almost half of the group, reported a double-digit gain. The only project reporting a singnificant loss, i.e. Theta (THETA) is coming from a prolonged period of gain and is probably suffering experiencing some form of take profit on behalf of investors, with the rest of the pack showing an impressive performance overall.
Correlations have been lower than the past week overall, with an average level approaching 0.3. NULS (NULS) and Harmony (ONE) posted the lowest correlation with peers with a level approaching 0.1.
The best project of the week has been Cardano (ADA) , which rose to 0.07966 USD with a +49.74% positive performance. The coin, which was featured in our latest Weekly Crypto Report, rose after the announcement of the Shelley update for its mainnet, which will take place on July 29th. Even this update will occur through a hard fork and is particularly interesting for investors cause it will allow also staking rewards to be obtained through the mainnet.
Zilliqa (ZIL) also deserves a mention, finishing with an impressive +40.41% return w/w.
Tokens were the best sector during the past seven days, with 16 coins out of 18 closing with a positive result. Performances ranged from -10.24% to +20.26% and resulted in a +6.91% median value, with six of the coins closing with a double-digit gain.
The intra-sectoral correlation has been significantly lower than last week for Tokens, with an average level under 0.2. Cortex (CTXC) registered the lowest level in the sector approaching 0.1.
Kavacoin (KAVA) was the best performer of the sector, closing the period at 0.862 USD with a 20.26% positive performance w/w. The coin rose after OKChain, the blockchain of OKEx, announced that it is planning to integrate KAVA for its DeFi services.
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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 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.