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 negative overall for the cryptocurrency market, with all our sectors registering negative performances. Currencies, Platforms and Tokens fell together with BTC. Tokens were the best performing sector for the second consecutive week, although the difference in performance between sectors was minimal with respect to what we have seen in the past.
As we have already seen in our Weekly General Report, the cryptocurrency market followed the legacy financial markets in new risk-off phase sparkled by FED comments of Wednesday and fear for a second wave of COVID cases in China. The relative good news was that Altcoins have not significantly underperformed BTC. The latter has certainly not functioned as a safe haven asset during the past week, but we have at least avoided the traditionl dynamic of aplification of BTC movement by the other cryptocurrencies.
Sectors showed a significantly higher level of correlation with respect to the past week.
All sectors showed a high level of correlation with the others, with no value falling below 0.8.
Projects whose main feature is to be used as a medium of exchange have shown overall negative results during the last seven days, with performances ranging from -11.539% to +0.893%. The median value was a negative -5.4% w/w, down more than five percentage points with respect to the past week.
The only coin able to finish the week with a positive result was Beam (BEAM). All the other coins reported a negative result, with one reporting a double-digit loss. BTC was down 4.67% w/w and closed significantly below the 10’000 USD level at 9261 USD.
Currency projects showed a higher level of correlation with respect to last week, with an average level of circa 0.7. NANO (NANO) is again the holder of the lowest correlation value, approaching 0.6 this time.
Beam (BEAM) was the best performing coin among currencies, closing the week at 0.4744 USD, good for a 0.89% w/w return.
The coin will perform Mainnet upgrade at the end of this month in which several changes will be implemented through a hardfork: changes in the PoW algorithm, support for confidential assets and the support for the Mimblewimble Lelantus Protocol.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. Ripple (XRP) appears to be the weakest project in terms of its trading level for the second consecutive week, highlighting the period of weakness for the coin.
The Platforms category could not save himself from a negative week according to the general market trend. Platforms performances were bad on average, with results ranging from -19.85% to +10.85% w/w and a median result of -8.50 w/w, which is about eleven points lower than the last week.
Just 7 coins out of 36 finished the week with a positive result. Only one coin reported a double-digit gain, with a significant number of 14 projects finishing on the other hand with a double-digit loss. The week was not a good one for cryptos, and platforms made no exception.
Correlations have been higher than the past week overall, with an average level approaching 0.6. Stratis (STRAT) posted the lowest correlation with peers, with a level just above 0.4.
VeChain (VET) was the best project of the week, rising to 0.008439 USD with a +10.85% positive performance. The coin has benefited from Coinbase announcing the possibility of its listing in the first half of the week, even if it was then affected by the general weakness of the market.
Tokens were the best sector during the past seven days, with 6 coins out of 18 closing with a positive result. Performances ranged from -20.35% to +26.15% and resulted in a -5.23% median value, which is 13 points lower than the past week. Two of the coins finished with a double-digit gain.
The intra-sectoral correlation has been significantly higher than last week even for Tokens, with an average level over 0.55. REN (REN) registered the lowest level approaching 0.45.
Ren (REN) was the best performer of the sector, closing the period at 0.106 USD with a 26.15% positive performance w/w. The coin was also among the projects selected by Coinbase for an evaluation order to be listed.
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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 15th 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.