Stocktwits Crypto Data Dive – Week 49

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. 🔭

The continued fall from $2.25 trillion at the beginning of 2022 has certainly been painful for short-term bulls. The market bottomed out (so far) in the $740 to $745 billion value areas.

In terms of this past week’s specific action, the market has been very twitchy. With the exception of a few altcoins, most of the market spent the week facing minor spikes higher, then lower, then back to roughly where it started. 

Analysts are mixed about whether we’ve seen the bottom of this bear market, or if there’s at least another leg lower to go. 🕵️‍♀️

Top 25 Cryptocurrency Update

There was one major change to the list this week.

Flow ($FLOW.X), which made it into the list last week, was kicked out with Terra Luna Classic ($LUNC.X) stepping in. 

EOS ($EOS.X) was the best performer this week.

Cryptocurrencies in the Privacy, DeFi, and DEX indices continue to show a lot of strength and momentum. 

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

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 and 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 in slow motion. You’re back on your feet and 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, Proof-Of-Work, and Privacy indices. 

The Centralized Exchanges (CEX) index is the biggest laggard, followed by the Metaverse and Play-To-Earn indices. Last week’s Crypto Data Dive warned that the CEX Index had a good chance of dropping into “Lagging Quadrant” this 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 2 major changes to the list this week.

First, Dvision and Yield Guild Games were kicked out of the index and replaced by Star Atlas ($STARATLAS.NFT) and GuildFi.

The second biggest change was Star Atlas’s stellar rise not just into the index, but it was the best performer by a long shot, up +17% for the week and +116% over the past 30 days. 

The Metaverse Index was, far and away, the best-performing index of the week, with a gain of 4.18% this week. ⏳

The Proof-Of-Work Index

The Proof-Of-Work Index is a collection of cryptocurrencies that, you guessed it, are blockchains that use Proof-Of-Work as their primary consensus mechanism. Bitcoin is the most well-known and biggest Proof-Of-Work cryptocurrency, but it is excluded from this index.

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.

Bitcoin SV ($BSV.X) moved into the index (and is the best performer), while Amp ($AMP.X) was moved out. 

The Proof-of-Work Index was the second best-performing index, with a gain of 0.52% for the 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 were two major changes to the list this week.

Mask Network($MASK.X), which joined the list last week and was the best performer, was kicked out of the top ten. Horizen ($ZEN.X) and Secret Network ($SCRT.X) also got the boot. 

Loki ($LOKI.X), Harmony ($ONE.X), and HOPR ($HOPR.X) joined the list.

It is interesting to note that out of all the custom Stocktwits crypto indices, the Privacy Coin Index is the only index where all the assets in the index are in the green for the past 30 days. 

The Privacy Index was the best-performing index, with a gain of -0.69% for the week. 🤫

Putting It All Together

Momentum across the board is to the downside, with the CEX Index leading the charge south. 

The DeFi, DEX, and Privacy indices continue to see better performance than the rest of the market. 

The Metaverse Index and Proof-Of-Work Index were the only positive performing indices for the week – all others ended in the red. 🔴

Credits & Feedback

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

• Nailed It 👏👏
• Pretty Good 👍👍
• Wack, Yo 👎👎