Welcome to the Stocktwits Crypto Data Dive for Week 50 of 2022!
This is the third crypto newsletter of our new Saturday edition of the Litepaper that we’re testing out through the end of the year. 👍
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:
- Tracks the crypto total market cap every week.
- Tracks the 25 best-performing cryptocurrencies of the week.
- 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 50:
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. 🔭
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 $727 to $745 billion value areas.
In terms of this past week’s specific action, it’s been bloody. The total market cap didn’t reach a new low this week, but the weekly close is the lowest since the week of December 21, 2020 – almost two years.
Analysts see extreme bearish signals in the technicals and fundamentals, warning that Bitcoin ($BTC.X) could dip below even the $10,000 value area. 🕵️♀️
Top 25 Cryptocurrencies
Top 25 Cryptocurrency Update
There was one major change to the list this week.
Terra Luna ($LUNC.X) dropped out of the top 25 and Algorand ($ALGO.X) moved in.
Bitcoin and Tron ($TRX.X) were the best performers this week, lower by -3%.
*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
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:
- 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.
- 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.
- 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.
- 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 remains the best-performing on the RRG, followed by the Top 10 and Proof-Of-Work.
The Centralized Exchanges (CEX) index is the biggest laggard, followed by the Smart Contracts index, which slid into the Lagging Quadrant. 👁️
Centralized Exchange
The Centralized Exchange Index
The CEX Index is a collection of cryptocurrencies that are the native tokens/assets of a centralized cryptocurrency exchange (like Coinbase).
This is the first time the CEX Index has led all other indices.
The CEX index was the best performer of the week, down -1.51%.⏳
Proof-Of-Work
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 $100 million.
There was one major change to the list this week.
Litecoin ($LTC.X) was kicked out of the index this week and replaced by Digibyte ($DGB.X). Consequently, Digibyte is the leader of the index this week.
The Proof-of-Work Index was the second best-performing index, down -3.35%. 💪
Privacy
Privacy Coins/Tokens Index
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 $10 million.
There were two major changes to the list this week.
Harmony ($ONE.X) and PIVX ($PIVX.X) dropped out of the index, while Horizen ($ZEN.X) and Railgun entered.
The Privacy Coin Index is the only index where all the assets in the index have been in the green for the past 30 days.
The Privacy Index was the third best-performing index, down -8.76 for the week. 🤫
Bonus Index - Metaverse
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.
The Metaverse index was the best performer last week – but the tables turned. It is the worst performer of the week, down -17%.
Summary
Putting It All Together
It’s bloody out there. Risk-on markets, in general, are reeling, and the hopes of some Santa rally have been smashed.
For the cryptocurrency space, the least volatile crypto of the bunch is the one that rules over them all: Bitcoin.
Bitcoin was one of the best-performing risk assets in any market last week.
Indices closed in the red this week. 🔴
See You Next Saturday!
Credits & Feedback
Today’s Litepaper was written by Jon Morgan. Let him know how he did: