GOin Market Watch #5, insights for digital assets investors.

Alice de GOin
Feb 20 · 8 min read

Every Week, GOin gives the keys to understand trends in the Crypto Market to investors

GLOBAL MARKET OVERVIEW

Period from February 18th 2018 to February 17th 2019 — GMT close

Diverging weekly performances have resulted in a near-zero impact on global market capitalization, which stood at USD 122.7 bn as of February 17th. Global traded volumes are however continuing to increase, with a daily average moving from USD 17.8 bn to USD 19.9 bn since our last weekly report.

In the news:

  • Canadian exchange Coinsquare has acquired StellarX, the decentralized platform based on the Stellar blockchain
  • Nasdaq is to provide real-time Bitcoin and Ether Index information
  • Funds in short positions on Bitcoin drop to 6-month low

1-year evolution of global market capitalization

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Global market capitalization has decreased by 74.2% over the past year

Over the past week, global market capitalization has remained stable (+0.3%):

  • BTC and XRP have both underperformed (-0.4% and -2.0% respectively)
  • ETH has been pursuing its recovery (+7.1% compared to +16.2% over the previous week)

1-year evolution of global traded volumes

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Since the beginning of this calendar year market activity has been sustained, with daily traded volumes regularly exceeding USD 15 bn, back to the levels of activity experienced 1 year ago

Over the past week, traded volumes have increased by 11.6%:

  • This increase has mainly been driven by ETH traded volumes (+18.5%)
  • BTC traded volumes have also significantly increased (+8.0%)
  • XRP traded volumes have dropped by 6.5%

1-year evolution of 60-day volatility

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Market volatility has been divided by more than 2 times over the past year and has been on a downward trend since the beginning of the calendar year
  • As of February 17th, 60-day market volatility stood at 67,6% compared to 150,2% one year ago

All major crypto assets are experiencing decreasing levels of risk:

  • BTC 60-day volatility has decreased from 140,1% to 58,5% over the past year
  • ETH 60-day volatility from 150,9% to 109,1%
  • XRP 60-day volatility from 256,9% to 73,8%

ZOOM ON TOP 50 SAMPLE

The Top 50 sample is determined every week according to the following methodology:

1) Ranking of crypto assets by market capitalization

2) Elimination of crypto assets that:

  • Have less than 3 months of trading history
  • Are stable coins
  • Are subject to publicly known issues — trading or storage failures, fraud suspicions, technical flaws in the underlying technologies

The complete list of currently eliminated crypto assets can be found here: https://www.goin-invest.com/index/fuseki/.

3) The remaining 50 largest market capitalizations are selected for analysis

7-day performance

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Another good week for the Top 50 sample with a 1.5% median performance
  • LTC has undergone an understandable consolidation period (-6.2%) after several weeks of astonishing performances
  • MKR has been in the top 5 performers for 2 consecutive weeks, bringing its 2-week performance to 42,3%
  • KMD has benefited from a bunch of recent announcements, including the launch of a beta blockchain-as-a-service system in partnership with Amazon Web Services in Q2 2019

7-day traded volumes

As of February 17th, 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • Increase of average weekly traded volumes by 12.7% compared to last week
  • Median weekly traded volumes have however dropped from USD 9.6 m to USD 8 m, illustrating that the increase in market activity is concentrated on top crypto assets
  • EOS (+23.7% in weekly traded volumes) and ETH (+18.5%) have driven the overall increase in market activity, with a nice contribution from BTC (+8.0%)
  • XRP is the only negative contributor in the top 5 (-6.5%)
  • Steady top 5 that represents 60.8% of global traded volumes and 87.1% of traded volumes on the top 50 sample

Average daily traded volumes/market capitalizations

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Stable top 5 with QTUM, ZEC, LTC and EOS remaining at the top positions
  • Strong increase of traded volumes combined stable market capitalizations lead to an increase of the average ratio (from 11.2% to 12.5% since the previous week)

7-day annualized volatility

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Significant decrease in volatility for the Top 50 sample (median value from 76% to 47%) in a relatively stable market in terms of market capitalization
  • Stable gap between the highest and the lowest levels (128% difference between the most and the least volatile last week, 121% this week)
  • BTC has regained its usual “least volatile crypto asset” position (13% this week compared to 56% last week)
  • While DOGE, last week’s least volatile crypto asset, has remained stable with a 44% annualized volatility over the period

90-day correlation to BTC

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • Correlation to BTC has undergone a strong decrease: -0.123 in median value and -0.163 in average value compared to last week
  • 6 coins with negative correlations to BTC, compared to 3 last week
  • The higher negative correlation to BTC has been HOT (-0.345 correlation to BTC)

ZOOM ON GOin’s INDICES

7-day performances

As of February 17th, 2019 — GMT close in USD

Source: www.coinmarketcap.com, GOin
  • All FUSEKI indices have outperformed the market; the FUSEKI and FUSEKI WPX have also outperformed the Top 50 sample
  • The FUSEKI WL has been the least performing index due to the lower weights of XTZ and BAT as well as the higher weight of XRP
  • The FUSEKI and FUSEKI WPX have been the most performing indices thanks to the higher weights of XTZ and BAT

Constituents’ contributions to index performance

As of February 17th, 2019 — GMT close in USD

*February 11th, 2019 — Source: GOin

Top upwards pulling:

  • XTZ. Strong performance over the week (+15.3%) that has contributed to the performance of all FUSEKI indices (from +0.83 points for the FUSEKI WL to +3.52 points for the FUSEKI WPX)
  • XEM. Good performance (+4.4% over the week) that has also benefited all FUSEKI indices (from +0.73 points for the FUSEKI WL to +1.78 points for the FUSEKI WPX)
  • BAT. Despite its drop on rebalance day (-3.7% on February 11th), BAT has been an important contributor to the FUSEKI indices performances over the rest of the week

Downwards pulling:

  • BNB. Bad 6-day performance (-3.5% as of February 17th) that has impacted all FUSEKI indices, especially the FUSEKI WP (-1.23 points)
  • XRP. Bad performance over the week (-2.1%) mainly due to a 2.3% drop on February 11th that has affected all FUSEKI indices, particularly the FUSEKI WPX (-0.4 points)

7-day correlation of index constituents

As of February 17th, 2019 — GMT close

Source: GOin
  • Strong decrease in correlation to BTC: 0.35 average value this week (compared to 0.87 for the previous period) and 0.68 median value (compared to 0.93)
  • No significant average correlation as coefficients vary from 0.42 average correlation to DOGE to -0.24 average correlation to HT

Rebalancing

As of February 18th — At rebalancing price

Source: GOin
  • No change in the top 3 given their relatively low volatility levels compared to other crypto assets
  • Out: BTM due to a decrease in liquidity
  • In: LSK due to a decrease in volatility

Average rotation rates

As of February 18th — At rebalancing price

Source: GOin
  • Stable average weekly rotation rates over 1 year
  • Low rotation rates this week for the FUSEKI and FUSEKI WL as only one crypto asset has entered the indices (LSK) to replace BTM
  • High rotation rate for the FUSEKI WP due to important changes in constituents weighting

1-year performances compared to BTC and ETH

As of February 17th, 2019 — GMT close

Source: www.coinmarketcap.com, GOin
  • BTC and ETH prices have decreased by 65.2% and 85.5% respectively over the past year
  • In the meantime, the FUSEKI indices have decreased by between 73.8% (FUSEKI WPX) and 78.7% (FUSEKI WL)

DISCLAIMER

This publication is for discussion and informational purpose only. No statement nor information presented in this document shall be considered an investment advice.

No statement nor information presented in this document shall be considered a solicitation to buy or an offer to sell a security, or any other product or service, to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the laws of such jurisdiction.

The data provided and calculation presented are for illustrational purpose only, and GOin shall not have any liability, contingent or otherwise, for the accuracy, completeness, timeliness or correct sequencing of any information provided by GOin or for any decision or action taken by you in reliance upon such information. Past performance does not guarantee future results.

GOin, a French SAS registered in Paris, France under French law owns a) all registered design, trademark, service mark rights and copyright; b) all intellectual property and any other rights and interests in this publication.

Crypto asset markets are young and highly volatile, which means crypto asset investments are particularly risky. Before investing in crypto assets, you need to be aware of and accept that you might be exposed to the following risks: a) market risk; b) risk of partial or total loss of capital; c) currency risk; d) liquidity risk; e) regulatory risk; f) technological risk; g) risk of theft or fraud; h) any other risk related to crypto asset investment.

To learn more about GOin and its offer you can visit www.GOin-invest.com, and connect with us on social media to stay up to date with the latest news:

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GOin is a professional platform offering regulatory-compliant financial instruments for a smart exposure to crypto assets. Remember the future of finance !

Alice de GOin

Written by

I represent the amazing GOin project across social networks. We aim at simplifying investments into crypto assets. I would be happy to answer your questions :

GOin-Invest

GOin is a professional platform offering regulatory-compliant financial instruments for a smart exposure to crypto assets. Remember the future of finance !