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.
GENERAL OVERVIEW
The last seven days were positive overall for the cryptocurrency market, with all our sectors registering performances in the green. Currencies, Platforms and Tokens rose more than BTC. Tokens were the best performing sector for the third consecutive week, with Platforms a pretty close second and Currencies and BTC more distanced.
The market shrugged off the negativity of the past week in order to improve on its performance. Altcoins resumed the overperformance with respect to BTC that we had already seen in the previous weeks. Overall, the market is still in a lateral phase and volumes are decreasing. Still, some healthy trends are developing, first of all the already mentioned Alts overperformance which is reminiscent of an Altseason flavour.
Sectors showed a significantly lower level of correlation with respect to the past week.
All sectors showed an unusually low level of correlation with the others, with Tokens and Currencies falling almost to 0.3.
CURRENCIES
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 -0.36% to +13.7%. The median value was a positive+1.57% w/w, up seven percentage points with respect to the past week.
The only coin able to finish the week with a double-digit gain was Nano (NANO). The peers were still in positive territory, exception made for Ripple (XRP), which is experiencing a relative weakness for weeks now. BTC was up 1.19% w/w and closed at 9’474 USD.
Currency projects showed a lower level of correlation with respect to last week, with an average level of circa 0.5. Beam (BEAM) showed the lowest correlation with its peers, approaching 0.3.
Nano (NANO) was the best performing coin among currencies, closing the week at 1.1576 USD, good for a 13.70% w/w return.
The coin announced the version V21 Athena of its node to be available as an upgrade for all the nodes participating in Nano network, which brought interest among a consistent supporters base.
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 third consecutive week, highlighting the period of weakness for the coin.
PLATFORMS
The Platforms category was the second best sector of the week, inverting the negative trend of the last one. Platforms performances were good on average, with results ranging from -19.43% to +33.65% w/w and a median result of +5.2 w/w, which is about thirteen points higher than the last week.
Just two coins out of 36 finished the week with a negative result. Ten coins reported a double-digit gain, with just one project finishing on the other hand with a double-digit loss. In other words, Platforms rapidly resumed their upward trend going on for months.
Correlations have been consistently lower than the past week overall, with an average level approaching 0.35. Stratis (STRAT) posted the lowest correlation with peers for the second consecutive week, with a level of 0.07.
Stratis (STRAT) was the best project of the week, rising to 0.5088 USD with a +33.65% positive performance. The coin has benefited from its hackathon going on and also declared to have “achieved Smart contract Interoperability between Stratis blockchains and IBM Hyperledger blockchains”, which is a positive development well received from the market.
TOKENS
Tokens were the best sector again during the past seven days, with 15 coins out of 18 closing with a positive result. Performances ranged from -8.07% to +39.88% and resulted in a +6.08% median value, which is 10 points higher than the past week. Seven of the coins finished with a double-digit gain.
The intra-sectoral correlation has been significantly lower than last week even for Tokens, with an average level of slightly above 0.2. FunFair (FUN) registered the lowest level approaching 0.12.
iExec RLC (RLC) was the best performer of the sector, closing the period at 0.6475 USD with a 39.88% positive performance w/w. The project gave details about its July and September releases and announcements, which are goint to respectively be about privacy and interoperability tools for DeFi and the new protocol roadmap.
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DISCLAIMER
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 22th 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.
