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 neutral performances overall in the cryptocurrency market, with positive results coming from the smallest projects in terms of market capitalization. The vast majority of the week was actually showing a positive trend manifesting at each size level. On Wednesday, however, The whole market fell.
Cryptocurrencies experienced the same movement of traditional financial markets, which were weakened by possible cloudy developments relative to tariffs war and a pandemic situation that does not look under control. At this point, cryptos, regardless of size, are not behaving much differently from traditional assets.
The level of correlation between the three groups was lower than last week on aggregate. Small-cap and Top coins registered the lowest level of correlation at 0.88.
The Large projects, i.e. our selection of coins with a high market capitalization, were the worst-performing group during the past seven days, following the same result registered the last week.
Just four coins out of sixteen registered a positive result, with one also reporting a double-digit gain. Overall, the results were in a range between -10.85% and +0.07%, with the median result being -0.45%, about five percentage points higher than last week. Overall, losses were pretty not worrisome. We are in a lateral phase that needs some kind of trigger to evolve into something consistently different.
The intra-group correlations were lower than last week at 0.7 on average, with Chainlink (LINK) posting the lowest level at circa 0.5.
Chainlink (LINK) had the best week among all the top projects, rising 15.32% to 4.6344 USD. LINK market capitalization is now over 1.6 billion USD.
The coin is near its all-time high and announced a partnership with the China National Blockchain Services Network, which added fuel to an already clear upward trend.
On the other hand, the worst performing project was Ripple (XRP), which closed the week with a -4.53% w/w price decrease.
Our selection of Mid-cap coins reported a neutral performance overall and was in line with Large-caps and BTC. The performances ranged from -16.23% to +12.6%. The median performance was a -0.36% w/w, which is 5 percentage points higher than the one reported last week. Just one coin reported double-digit gains, while one reported a double-digit loss, namely Zilliqa (ZIL).
The intra-group correlations for Mid-cap coins were significantly lower with respect to last week, with an overall average value of 0.4. ZIL posted the lowest value at 0.3.
The best performing project was Basic Attention Token (BAT), closing the week at +12.6% w/w with a price of 0.2484 USD and a market capitalization approaching 360 million USD. BAT benefit from set start of an advertising campaign with Home Depot and also from the listing of a cross against Indian Rupees.
On the other hand, Zilliqa (ZIL) was the worst performer of the group, closing the past seven days at 0.019 USD for a -16.29% w/w return and around 200 million USD market capitalization.
Our selection of small-cap coins had the best performance among our aggregates for the third consecutive week, with results ranging from -4.97% to +42.81% w/w and a median value of +2.88%, which is circa 1.5 percentage points higher than the past week. Nine projects out of sixteen finished the week with a positive result, with six projects finishing with a double-digit gain and none with a double-digit loss.
The correlation between small projects was in line with last week with an average of 0.24, with Harmony (ONE) posting the lowest level approaching 0.15.
The best performer of the week in the group was Ren (REN), closing the period at 0.16138 for a +42.81% w/w return and a market capitalization approaching 145 million USD. The project announced a partnership with Zcash (ZEC) and implemented its renBTC smart contract on the Ethereum Mainnet thanks to renVM.
Mco (MCO) was the worst performer of the week and recorded a -4.97% result and a price of 4.59 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 24th 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.