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 great overall for the cryptocurrency market, with all our sectors registering performances in the green. Currencies, Platforms and Tokens clearly overperformed BTC. Platforms were again the best performing sector, with Tokens registering a similar performance. Currencies were more distanced while BTC was basically unchanged.
Bitcoin dominance keeps falling and lost 2 percentage points this week. You should never call an altseason too fast in the crypto world, but it surely looks like the premise is there. For reference, the last time dominance was this low was one year ago.
Sectors showed an overall very low level of correlation.
Tokens and Currencies registered the lowest level at 0.15.
CURRENCIES
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 -1.25% to +35.84%. The median value was a positive+6.83% w/w, up 3.5 percentage points from the previous week.
Two coins were able to finish the week with a double-digit gain. Just one coin in the group registered a negative result, namely Bitcoin Cash (BCH). BTC was unchanged and closed at 9’315 USD.
Currency projects showed a low level of correlation, with an average of circa 0.44. Dogecoin (DOGE) showed the lowest correlation with its peers, approaching 0.19.
DOGE was the best performing coin among currencies, closing the week at 0.00329 USD, good for a 35.84% w/w return.
The coin benefited of a viral video on the social platform TikTok which also induced the exchange Bitfinex to list it.
The following graph shows the frequency distribution of the value of the currency projects with respect to BTC. Several coins which experienced recent weakness are exploring new fair price levels with respect to BTC, Litecoin (LTC) and Ripple (XRP) most of all.
PLATFORMS
The Platforms category was the best sector for the second consecutive week. Platforms performances were very good on average, with results ranging from -25.91% to +54.97% w/w and a median result of +14.37 w/w, basically doubling the already positive performance of the past week.
Just two coins out of 36 finished the week with a negative result. 21 coins reported a double-digit gain, with a single double-digit loss. Once agin, Platforms are leading the altcoins in a market rally context.
Correlations have been consistently low in the group overall and in line with last week, with an average level approaching 0.3. Holocoin (HOT) posted the lowest correlation with peers at 0.05.
Chainlink (LINK) was the best project of the week, rising to 7.53 USD with a +54.97% positive performance. The coin reached a new all-time high with this week’s performance and is keeping alive an uptrend going on for months now.
TOKENS
Tokens were the second best sector during the past seven days, with all the coins closing with a positive result. Performances ranged from +0.5% to +56.05% and resulted in a +6.81% median value. Seven of the coins finished with a double-digit gain.
The intra-sectoral correlation has been significantly low even for Tokens, with an average level of slightly below 0.2. Kava (KAVA) registered the lowest level approaching 0.05.
Fetch.AI (FET) was the best performer of the sector, closing the period at 0.047 USD with a 56.05% positive performance w/w. The project launched an open-source collective learning framework which cathched the investors’ attention.
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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 13th 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.
