Welcome to the Stocktwits Crypto Data Dive for Week 29 of 2023! 📊
In this issue, we’ll dive into the data to keep you informed about the progress of the overall crypto market and shine a spotlight on emerging and established trends.
The Stocktwits Crypto Data Dive has three main objectives:
- Tracking the weekly total market cap of the crypto market.
- Highlighting the 25 best-performing cryptocurrencies of the week.
- Monitoring the top 10 cryptocurrencies within various high-performing indices, including “Proof of Work,” “Web 3,” “Smart Contracts,” and more!
We track the performance of these indices from Thursday to Thursday to ensure a more accurate representation and account for weekend volatility.
So, without any further delay, let’s jump right into the data from week 29 and explore the intriguing insights it offers! 🚀
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. 🔭
From the highest all-time market cap close of $2.834 trillion, crypto is down -60.00%.
YTD, the cryptocurrency market is up +52.88%.
*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 Cryptocurrencies
Top 25 Cryptocurrency Update
There were 2 changes in the Top 25 this week.
Overall, the Top 25 cryptocurrencies were lower for the week by -5.3% versus +8.2% 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
Stocktwits Crypto Index RRG
Relative Rotation Graphs (RRG) help us visualize how a currency or sector performs compared to a benchmark – in this case, the U.S. Dollar Index (DXY). Think of the four colored sectors as stages in a race:
- Leading Quadrant (green) – You’re a champ! 🏆 You’re ahead of everyone else, and the crowd is cheering. But watch out; you might be overdoing it.
- Weakening Quadrant (yellow) – You’re slowing down 😓 and losing your lead. Maybe you’re a bit demoralized because your biggest fan didn’t show up. You’re now in the middle of the pack.
- Lagging Quadrant (red) – Disaster strikes! 😱 You’re injured, exhausted, or just made a big mistake. You’re now in last place, and it’s a sad scene.
- Improving Quadrant (blue) – Time for a comeback! 💪 Your motivation returns, the music swells, and you’re picking up speed. You’re back in the middle, catching up with the leaders.
Analyzing the RRG Examples
Example 1: Rapid Rotation
– If an instrument moves quickly through all four quadrants, it could indicate high volatility or erratic behavior. Traders may want to be cautious or use appropriate risk management strategies in such cases.
Example 2: Stuck in the Middle
– An instrument that remains close to the center of the RRG might be in a consolidation phase, lacking a clear trend or momentum. Traders might wait for a decisive move before entering a position.
Example 3: Consistent Leader
– If an instrument stays in the Leading Quadrant (top right) for an extended period, it could signify a strong, sustained uptrend. Traders might consider buying opportunities or riding the trend.
Example 4: Slow Recovery
– An instrument that gradually moves from the Lagging Quadrant (bottom left) to the Improving Quadrant (blue) and eventually to the Leading Quadrant (green) could indicate a slow but steady recovery. Traders might look for potential reversal or bottom-fishing opportunities.
The GIF below shows the past 10 days of movement on the RRG.
The GIF below shows the past 13 weeks of movement on the RRG.
Web3
1. Web 3 Index
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.
Current week’s performance: +4.9%
Last week’s performance: +10.8%
DeFi
2. Decentralized Finance (DeFi)
The DeFi Index (Decentralized Exchange) comprises the cryptocurrencies and tokens that make up the DeFi space. Cryptocurrencies such as Curve Finance, yearn.finance, and Clover are examples of assets that make up this index.
It’s not uncommon to see cryptos that also the DEX Index also in the DeFi Index.
We construct this index by limiting the assets in this space to a minimum market cap of $200 million.
Current week’s performance: -+0.8%
Last week’s performance: +8.3%
DEX
3. 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.
Current week’s performance: 0.0%
Last week’s performance: +8.0%
Proof-Of-Stake
Proof-Of-Stake Index
The Proof-of-Stake Index includes any cryptocurrency that has a Proof-of-Stake consensus mechanism.
We construct this index by limiting the assets in this space to a minimum market cap of $100 million.
Current week’s performance: -5.9%
Last week’s performance: +21.0%
Summary
Putting It All Together
Many of last week’s big winners experienced profit-taking this week but were able to keep some or most of the gains.
A story not much reported on is the mass adoption, particularly in the US, of DeFi and the use of DEXs, chiefly Uniswap ($UNI).
Excluding Bitcoin and Ethereum, the rest of the altcoin market has handily outperformed.
And despite this week’s pullback, if you scroll back up to the daily and weekly RRGs, for the first time in a long time, there’s a broad turnaround in at least the positive momentum of the crypto space.
See You Next Saturday!
