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 negative performances overall in the cryptocurrency market, with weaker results coming from the top projects in terms of market capitalization. Bitcoin was a little bit under pressure according tu a mured sentiment in the legacy financial markets. Coins of all sizes initially fell with it. However, after the initial movement, Tokens managed to separate themselves from the rest and actually finished the wekk with an overall positive performance.
Top coins in terms of market capitalization posted the worst result overall as already mentioned for the second consecutive week. This time, however, they shared the worst spot in terms of performances with Mid-cap coins. On the other hand, BTC was able to close the week on a more positive tone and finished better than both. The overall effect resulted in a basically unchanged level of BTC dominance.
The level of correlation between the three groups was higher than last week on aggregate. Small-cap and Top coins registered the lowest level of correlation at 0.88.
The Top projects, i.e. our selection of projects with a high market capitalization, were the worst performing group during the past seven days, following the same result registered the last week.
Just one coin out of sixteen registered a positive result, with one also reporting adouble-digit loss. Overall, the results were in a range between -10.85% and +0.07%, with the median result being -5.95%, about five percentage points lower than last week. Losses were not so significant in absolute terms for the crypto world. Still, it is Worth noting that the market is now in a much more weak position in terms of trend and mood if compared with a couple weeks ago.
The intra-group correlations were higher than last week at 0.87 on average, with Monero (XMR) posting the lowest level at circa 0.8.
Cardano (ADA) had the best week among all the top projects, rising 0.07% to 0.08167 USD. ADA market capitalization is now over 2.1 billion USD.
The coin is now besting the field for weeks now and the Shelley upgrade of its mainnet is now just two weeks away. It was the only project in the group able to close with a positive performance, albeit minimal.
On the other hand, the worst performing project was Neo (NEO), which closed the week with a -10.65% w/w price decrease.
Our selection of Mid-cap coins reported a negative performances overall and was the worst aggregate this week together with Top coins. The performances ranged from -16.52% to +9.79%. The median performance was a -5.7% w/w, which is 8 percentage points lower than the one reported last week. Just two coins reported double-digit gains, while four reported a double-digit loss, namely Icon (ICX), Cosmos (ATOM), 0x (ZRX) and Enjin (ENJ).
The intra-group correlations for Mid-cap coins were significantly higher with respect to last week, with an overall average value of 0.64. Algorand (ALGO) posted the lowest value at 0.5 .
The best performing project was VeChain (VET), closing the week at +9.79% w/w with a price of 0.00899 USD and a market capitalization approaching 500 million USD. As we already covered in our Weekly Sectorial Report, VET is benefiting from the possibility of Coinbase listing it together with other projects.
On the other hand, Enjin (ENJ) was the worst performer of the group for the second consecutive week, closing the past seven days at 0.17 USD for a -15.52% w/w return and around 140 million USD market capitalization.
Our selection of small-cap coins had the best performance among our aggregates for the second consecutive week, with results ranging from -15.88% to +26.64% w/w and a median value of +1.43%, which is circa five percentage points lower than the past week. Nine projects out of sixteen finished the week with a positive result, with four projects finishing with a double-digit gain and three with a double-digit loss.
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 Stratis (STRAT), closing the period at 0.4897 for a +26.64% w/w return and a market capitalization approaching 50 million USD. The project is now up circa 60% since the start of the year..
Tomochain (TOMO) was the worst performer of the week and recorded a -15.88% result and a price of 0.42 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 17th 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.