Stocktwits Crypto Data Dive – Week 6

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 -65.98%, versus -63.41% from last week. 

If the market was looking for a reason to settle down, take some profit and/or pull back, SEC Chairman Gensler’s Kraken crackdown certainly gave the crypto market a reason to do just that.

Using just social media as a metric of sentiment, there’s a definite (albeit subjective) feeling that people are becoming desensitized to these events. 

*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 nine changes in the Top 25 this week.

Out: $DOGE.X, $LUNC.X, $MANA.X, $AAVE.X, $AVA.X, $FIL.X, $FLOW.X, $FTM.X, and $SOL.X

In: $CRO.X, $ETC.X, $GRT.X, $HBAR.X, $LINK.X, $NEAR.X, $QNT.X, $THETA.X, and $VET.X.

Overall, the Top 25 cryptocurrencies were lower for the week, down by -7.1% versus +1.8% 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’. 

Like last week, all of the indices are now in the Improving Quadrant except for the Lending Index, buts veeeery close.

The NFT Index continues to move higher than a gopher who accidentally burrowed into a buried sachel of cocaine.

The A.I. and Proof-Of-Work indices continue to inch 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.

Web3

The Web3 Index comprises cryptocurrencies focusing on the next generation of the internet: blockchain, publicly distributed ledgers, transparency, openness, decentralization, and tokenonomics. 

$LINK.X and $GNT.X are examples of assets in this category.

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

This index had some monster changes this week – six assets moving out and another six moving in. 

Out: $API3.X, $AR.X, $FIL.X, $GTC.X, $MASK.X, $RNDR.X

In: $AKT.X, $CVC.X, $FET.X, $GRT.X, $HIVE.X, $OCEAN.X

This Index The Web3 Index was the third-best performer of the week, down -0.5% vs. +3.4% prior. 3️⃣

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 3 major changes this week.

$DYDX.X, $LRC.X, and $SUSHI.X were replaced by $CRV.X, $RUNE.X, and $SRM.X.

The DEX Index was last week’s third-best-performing index.

For this week, however, it was the worst-performing index this week, down -11.3% for the week vs. +4.5% prior. ❌

Putting It All Together

All ten of the Stocktwits Crypto Indices closed in the red this week, except for the newest addition to our indices, the A.I. Index. 🔴

From a technical analysis perspective, the move this week wasn’t unexpected – considering just the price action, it looks like the first corrective move since the beginning of 2023’s bull move. 

Credits & Feedback

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

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