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Stocktwits Crypto Data Dive – Week 48

Welcome to the Stocktwits Crypto Data Dive for Week 48 of 2022!

This is a new Saturday edition of the Litepaper that we’re testing out through the end of the year. And after a couple of weeks of testing in feedback, we’ll restart with week one in January and make this a staple in your weekend crypto itinerary. 👍

The data-centric issue aims to keep track of the overall crypto market’s progress and highlight new and old trends. It’s very similar to The Daily Rip’s Saturday issue, which tracks the performance of the top stocks in the S&P 500, Nasdaq 100, and Russell 2000. 🤩

The Stocktwits Crypto Data Dive serves three main purposes:

  1. Tracks the crypto total market cap every week.
  2. Tracks the 25 best-performing cryptocurrencies of the week.
  3. Tracks the top 10 cryptocurrencies in each of the three best-performing indices of the week. Our custom indices include  “Proof of Work,” “Web 3,” “Smart Contracts,” and more!

So without further adieu, let’s get into the data from week 48:

Total Market Cap

Total Market Cap Update

What is the broader trend within the crypto market? The simplest way to track that is using a total market capitalization chart. So let’s see what we’ve got. 👀

As we can see, it’s been a rough ride for investors in 2022, with the total market cap beginning the year near $2.25 trillion and trending consistently lower, recently hitting a low near $740 billion.

In terms of this past week’s specific action, the market experienced bullish momentum in the latter half of the week. Many altcoins recorded close to double-digit percentage gains. Yet despite those short-term improvements, many crypto investors realize the broader market remains precarious. 😬

Top 25 Cryptocurrencies

Top 25 Cryptocurrency Update

There were two major changes to the list this week.

Flow ($FLOW.X) and Stellar ($XLM.X) joined the list, replacing Binance Coin ($BNB.X) and Bitcoin Cash ($BCH.X).

Trust Wallet ($TWT.X) was the best performer this week and of the past 30 days and YTD. 

Other insights from this week included Dogecoin ($DOGE.X) and Chainlink ($LINK.X), maintaining strong, positive gains. Trust Wallet, Chainlink, Polygon ($MATIC.X), Litecoin ($LTC.X), and Internet Computer ($ICP.X) remain the only cryptocurrencies in the Top 25 to be positive for the past 30 days.

*The universe used to construct the Top 25 list consists of all cryptocurrencies with at least $1 billion market caps.

Stocktwits Crypto Index RRG

Stocktwits Crypto Index RRG

Relative Rotation Graphs (RRG) are useful visual tools to identify how an instrument or a sector performs against a benchmark. The RRG image below shows eleven customized crypto indices. Each contains the top ten by market cap (excluding stablecoins and some exchange-based tokens). 

The indices are Proof-of-Work, Web3, Smart Contracts, Decentralized Exchanges (DEX), Non-Fungible Tokens (NFT), Decentralized Finance (DeFi), Proof-of-Stake, Centralized Exchanges (CEX), Privacy, Metaverse, and Lending. 

They are rebalanced monthly, and the RRG tracks the last seven days’ performance.

Without going into the nitty-gritty details, the four colored sectors can be thought of like this, so imagine you’re in a race:

  1. Leading Quadrant (green) – You are in 1st, 2nd, or 3rd place. You are leading the pack. You’re going to medal. Anthems will be sung, tears will fall, and you may or may not pass a doping test. 
  2. Weakening Quadrant (yellow) – You’re losing your momentum; you’re out of breath. You just realized that your spouse or your mom didn’t show up to watch you, sapping your enthusiasm. You’re falling back and in the middle of the pack. 
  3. Lagging Quadrant (red) – You pulled a hamstring. You pulled a Michael Scott and ate five pounds of fettuccine alfredo an hour before your race. You fell down. You’re dead last. No anthems will be sung, but tears will fall, and no one will remember your name. 
  4. Improving Quadrant (blue) – You see your spouse or your mom in the stands. The crowd starts to see you get up. Emotional music begins, and the camera pans to the crowd standing in slow motion. You’re back on your feet and back in the middle of the pack, gaining on the leaders. 

The Altcoin index is the best-performing index on the RRG, followed by the Top 10, DeFi, and Privacy indices. 

The Metaverse and Play-To-Earn indices are the biggest laggards, followed by the Centralized Exchanges (CEX) index – which is at risk of becoming the most significant laggard if it falls into the “Lagging Quadrant” this coming week.


Privacy Coins/Tokens

Privacy coins/tokens are cryptocurrencies that either focus on creating complete anonymity with transactions or offer anonymity as an option when performing transactions.

We construct this index by limiting the assets in this space to a minimum market cap of $10 million.

There was one major change to the list this week.

Mask Network($MASK.X) joined the list after notching the largest gains. It replaced Harmony ($ONE.X), whose market cap may drop enough that it could be removed from this index altogether.

Particl ($PART.X) also saw significant gains this week, likely driven by the announcement of their 100% anonymous and private marketplace and DEX titled BasicSwap.

The Privacy Index was the best-performing index, with a gain of 8.03% for the week.


The Decentralized Exchange Index (DEX)

The DEX Index (Decentralized Exchange) comprises the cryptocurrencies and tokens that make up the DEX space. 

We construct this index by limiting the assets in this space to a minimum market cap of $100 million.

There was one major change to the list this week.

0x ($ZRX.X) moved into the 10th position, while 1inch ($1INCH.X) fell out.

The DEX Index continues to gain more momentum, likely driven by a combination of profit-taking and renewed interest in the DeFi and DEX spaces following FTX’s collapse.

The DEX Index was the second best-performing index, with a gain of 7.55% for the week.


The Metaverse Index

The Metaverse Index is a collection of cryptocurrencies that focuses on virtual worlds and environments, including the Play 2 Earn class of cryptocurrencies. 

We construct this index by limiting the assets in this space to a minimum market cap of $10 million.

There were no major changes to the list this week.

The Metaverse Index was the third best-performing index, with a gain of 6.18% this week.


Putting It All Together

Overall, altcoins display continued strength. From a momentum perspective, any cryptocurrencies that would fall into the metaverse category have seen a big increase despite continuing to lag behind nearly everything else. 

There is a noticeable uptick in the momentum away from centralized entities, so we see DeFi, DEX, and Privacy indices catching a lot of momentum and interest. 

As far as the CEX index is concerned, a significant amount of its downturn is continued fallout from FTX. But the other centralized tokens in the CEX index are down a good amount, too. 

All other indices recorded gains for the week except for the CEX index. 

See You Next Saturday!

Credits & Feedback

Today’s Litepaper was written by Jon Morgan. Let him know how he did: