Stocktwits Crypto Data Dive – Week 5

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. 🔭

From the all-time market cap high of $2.834 Trillion, crypto is down -63.41%, versus -64.04% from last week. 

Dips continue to get bought, and there’s a growing feeling amongst participants, pundits, and analysts that a new bull run may be just around the corner. We’ll keep our eyes peeled for any major changes. 👁️

*the price levels and performance values may be very different from what you read in your mailbox vs. what’s happening in the live market. This is especially true when crypto faces a new bull or bear run. 

Top 25 Cryptocurrency Update

There were a ton of changes in the Top 25 this week – 11 came in and 11 went out.

$BNB.X, $DOGE.X, $ETC.X, $ETH.X, $LTC.X, $LUNC.X, $MANA.X, $SAND.X, $TRX.X, $UNI.X, and  $XRP.X entered the Top 25 this week.

$AXS.X, $CRO.X, $EOS.X, $HBAR.X, $ICP.X, $LINK.X, $NEAR.X, $QNT.X, $THETA.X, and $XTZ.X left the Top 25 this week.

Overall, the Top 25 cryptocurrencies were positive for the week, higher by +1.8% versus +9.0% prior. 👍

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

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 Improving Quadrant can be roughly interpreted as ‘positive momentum’. 

All of the indices are now in the Improving Quadrant except for the Lending Index, which is just a hair below. 

The NFT and Metaverse Indices continue to show massive outperformance of momentum compared to everything else. 

The Proof-Of-Work Index is inching closer to the Leading Quadrant – a quadrant in which no indices have been in since almost one year ago in the week of February 11, 2022.

The GIF below shows the past seven weeks of movement on the RRG.

DEX Index

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 were 2 major changes this week.

$DFI.X and $UNI.X replaced $CRV.X and $RUNE.X

The DEX Index was the third-best performer of the week, up +4.5% vs. +11.1% prior. 3️⃣

Lending Index

The Lending Index comprises cryptocurrencies and platforms where users can offer their cryptocurrency for liquidity or loans for a return. 

We construct this index by limiting the assets in this space to a minimum market cap of $50 million.

There were four major changes this week.

$AAVE.X, $MFT.X, $MKR.X, and $QI.X replaced $ALPACA.X, $COMP.X, $NEXO.X, and $SPELL.X.

The Lending Index was the worst-performing index this week but still up -0.10% for the week vs. +8.2% prior. ❌

Putting It All Together

All ten of the Stocktwits Crypto Indices closed in the green except for the Lending Index – which was barely down. 💚

The NFT Index remains in the top 3 performing indices for all of 2023 so far.

Overall, week 5 was a week of shifting and changing. That can be easily seen in the Top 25 and how many positions were changed. 

Credits & Feedback

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

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