Weekly Sectorial Report, BTC dominance is under attack

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

sectorial index crypto performance jul 6

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. Platforms were the best performing sector, with Tokens 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 overperformed BTC once again, a trend which we have often seen in the past weeks. Overall, the market is still in a lateral phase. However, investors’ mood is improving according to what is happening in traditional financial markets and all crypto sectors are benefiting from it.

crypto sector correlation matrix jul 6
correlation sector regression crypto jul 6

Sectors showed an overall low level of correlation.
Tokens and Currencies registered the lowest level at 0.31.

CURRENCIES

crypto currency performance jul 6

Projects whose main feature is to be used as a medium of exchange have shown overall positive results during the last seven days, with performances ranging from -7.22% to +9.04%. The median value was a positive+3.27% w/w.

No coin was able to finish the week with a double-digit gain. Still, just one coin in the group registered a negative result, namely Beam (BEAM). BTC was up 1.91% w/w and closed at 9’296 USD.

currency correlation matrix jul 6

Currency projects showed a low level of correlation, with an average of circa 0.5. HC (hyperCash showed the lowest correlation with its peers, approaching 0.35.

HC price weekly jul 6

HC was the best performing coin among currencies, closing the week at 1.199 USD, good for a 9.04% w/w return.
The coin started the year at a price of 1.10 USD and, with the performance of this week, is back in green territory YTD.

The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. Beam and Nano (NANO) appear to be the weakest project in terms of their trading level with respect to BTC.

currency peers vs BTC jul 6

PLATFORMS

crypto platforms performance jul 6

The Platforms category was the best sector of the week, besting the field. Platforms performances were very good on average, with results ranging from -1.39% to +72.82% w/w and a median result of +7.25 w/w.

Just four coins out of 36 finished the week with a negative result. Twelve coins reported a double-digit gain, with no double-digit loss. Once agin, Platforms resumed their upward trend going on for months.

platform correlation matrix jul 6

Correlations have been consistently low in the group overall, with an average level approaching 0.3. Stratis (STRAT) posted the lowest correlation with peers at 0.13.

vet price weekly jul 6

Vechain (VET) was the best project of the week, rising to 0.0149 USD with a +72.82% positive performance. The coin started the year at 0.005 USD and is therefore almost 200% up YTD.

crypto platforms vs ethereum jul 6

TOKENS

crypto token performance jul 6
correlation matrix token crypto jul 6

The intra-sectoral correlation has been significantly loweven for Tokens, with an average level of slightly above 0.2. OmiseGo (OMG) registered the lowest level approaching 0.13.

npxs price weekly jul 6

Pundi X (NPXS) was the best performer of the sector, closing the period at 0.0000187 USD with a 38.02% positive performance w/w. The project started the year at 0.000127 and is therefore almost 50% up in the period.

crypto tokens vs ethereum jul 6

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 6th July 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.