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 good performances overall in the cryptocurrency market, with weaker results coming from the top projects in terms of market capitalization. Bitcoin contributed to the positive mood with a positive performance and keeping to trade in reach of 10’000 USD. The market is clearly betting on it to cross that level first or then and investors are accumulationg positions on altcoins, hoping that whenever that level will be crossed it is going to represent a trigger for the whole market to go up.
Top coins in terms of market capitalization posted the wors result overall as already mentioned, with medium and small coins offering a significantly more convincing performance this week. With opposite effects coming from top projects and mid/small ones, BTC dominance was stable this week just slightly below 65%.
The level of correlation between the three groups was lower than last week on aggregate. Small-cap coins reported again the lowest correlation level among our groups at circa 0.55 on average .
The Top projects, i.e. our selection of projects with a high market capitalization, were the worst performing group during the past seven days, after besting the field during the previous week.
Six coins out of sixteen registered a positive result, with no one reporting double-digit gains. Overall, the results were in a range between -4.75% and +4.29%, with the median result being -1.06%, about eight percentage points lower than last week. Overall, results were not worrysome in absolute terms. Buyers’ fatigue probably played a role, with investors looking at cheap coins in the mid-cap and small-cap spaces.
The intra-group correlations were lower than last week, with Cardano (ADA) posting the lowest level below 0.5.
Tron (TRX) had the best week among all the top projects, rising 4.29% to 0.01751 USD. TRX market capitalization is now over 1.1 billion USD.
The coin rose because of the confirmation of the 4.0 version of its mainnet to be launched on the 7th of July 2020. TRX was not often among the best performing projects in its peer group in the past couple of months, so there was also some hunger for good news in order to fill the gap.
On the other hand, the worst performing project was Stellar (XLM), which closed the week with a -4.75% w/w price decrease.
Our selection of Mid-cap coins reported a good performance overall and the second best among our groups in terms of results for the second consecutive week, offering welcomed consistency. Their performance ranged from -9.34% to +40.88%. The median performance was a +3.5% w/w, which is 2 percentage points lower than the one reported last week but still of more or less the same magnitude. Five coins reported a double-digit gains, while none reported a double-digit loss, Theta (THETA) coming close.
The intra-group correlations for Mid-cap coins were again significantly lower than Top coins and with respect to last week on aggregate with an average correlation value just silghtly above 0.3. 0x (ZRX) and Zilliqa (ZIL) posted the lowest levels at below 0.2 .
The best performing project was Zilliqa, closing the week at +40.88% w/w with a price of 0.02488 USD and a market capitalization approaching 270 million USD. ZIL is among the best performing coins since weeks now and the possibility of staking on its mainnet is going to be available in a week, making it an attractive target for investors.
On the other hand, Theta (THETA) was the worst performer of the group for the second consecutive week, closing the past seven days at 0.24927 USD for a -9.34% w/w return and around 210 million USD market capitalization.
Our selection of small-cap coins had the best performance among our aggregates, with results ranging from -2.52% to +15.78% w/w and a median value of +7.05%, which is circa two percentage points higher than the past week. Thirteen projects out of sixteen finished the week with a positive result, with four projects finishing with a double-digit gain.
The correlation between small projects was in line with last week with an average of 0.21, with Mithril (MITH) posting the lowest level approaching 0.15.
The best performer of the week in the group was AION (AION), closing the period at 0.1306 for a +15.78% w/w return and a market capitalization approaching 55 million USD. This is the second consecutive week for the project as the best in its peer group.
Ren (REN) was the worst performer of the week and recorded a -2.52% result and a price of 0.08649 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 10th 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.