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 very good performances overall in the cryptocurrency market, with projects of every size realizing positive returns on an aggregate level. Bitcoin contributed to the positive mood trying once more to cross (and keep) the 10’000 USD price level. Even if BTC was not able to hold the level, the weekly performance was not affected too much and the market closed the period with a positive tone.
Bitcoin was actually overperformed by all our groups. Top coins in terms of market capitalization posted the best result overall, followed by medium and small projects. BTC’s dominance keeps therefore falling and is now below 65%. There is still plenty of space for it to reduce even more, with investors apparently considering BTC alternatives in the cryptocurrency space more and more, as testified by our aggregates’ performances this week.
The level of correlation between the three groups was higher than last week on aggregate. Small-cap coins reported again the lowest correlation level among our groups at circa 0.7 on average .
The Top projects, i.e. our selection of projects with a high market capitalization, were the best performing group during the past seven days, exactly opposite to what happened during the previous week.
All the coins registered a positive result, with six of them reporting double-digit gains. Overall, the results were in a range between +2.28% and +51.95%, with the median result being 7.05%, about eight percentage points better than last week. Top projects offered a very convincing performance overall, and benefited from ADA posting a very impressive result.
On the other hand, the worst performing project was Etherum Classic (ETC), which was still able to close the week with a 2.28% w/w price increase.
Our selection of Mid-cap coins reported a good performance overall and the second best among our groups in terms of results. Their performance ranged from -29.19% to +46.58%. The median performance was a +5.45% w/w, which is just slightly lower than the one reported last week. Six coins reported a double-digit gains, while two of them reported a double-digit loss.
The intra-group correlations for Mid-cap coins were again significantly lower than Top coins on aggregate with an average correlation value just below 0.4. Enjin (ENJ) and Zilliqa (ZIL) posting below 0.2 levels.
The best performing project was VeChain (VET), closing the week at +46.58% w/w with a price of 0.007118 USD and a market capitalization approaching 400 million USD. VET rose on the beck of the announcement of a partnership with Bayer China finalized to track clinical-trial drugs with the help of the blockchain technology and the project is now up more than 40% since the start of the year.
On the other hand, Theta (THETA) was the worst performer of the group after having been the best during the previous week, closing the past seven days at 0.26 USD for a -29.19% w/w return and around 240 million USD market capitalization.
Our selection of small-cap coins had the worst performance among our aggregates, with results ranging from -5.33% to +19.32% w/w and a median value of +4.75%, which is circa seven percentage points lower than the past week. Ten projects out of sixteen finished the week with a positive result, with five projects finishing with a double-digit gain.
The correlation between small projects was in line with last week, with IoTeX (IOTX) posting the lowest level approaching 0.15.
The best performer of the week in the group was AION (AION), closing the period at 0.113 for a +19.32 w/w return and a market capitalization approaching 50 million USD. The coin has now risen more than 100% since starting the year at around 0.054 USD.
Ren (REN) was the worst performer of the week and recorded a -5.33% result and a price of 0.0876 USD.
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 3rdh of June 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.