Weekly Market Report - 15th June 2019
This weekly report aims to provide an overview of the crypto markets focusing on secondary market trading. Though nothing here is investment advice, we hope this provides some useful and targeted information.
Weekly Market Report - 15th June 2019
Recently, we see Egretia, an altcoin that joined the top 100 tokens, deviating away from the market while displaying high volatility. Want to know the reason behind this unusual price behavior? Check out this week’s report to find out!
Market Overview
We are focusing our market overview on the top 100 tokens from CoinMarketCap and the sector classification is roughly in line with what MyToken uses with some minor modifications. We will be continuously updating the sectors and their constituents as we develop a deeper understanding of the crypto ecosystem.
This week’s new participants in the top 100 coins: NRG, EGT, NAS, SAN
Coins that dropped out of the top 100 coins compared with last week: AION, MANA, LRC, FCT
Rolling Returns of Top 100 Tokens by Sector
Returns of the top 100 Tokens by sector from May 14th, 2019, to June 14th, 2019
Returns vs Volatility
This is a look at the mean and total daily returns vs volatility for the 15 sectors as well as the overall crypto and equity market. Some sectors only contain one or two coins/tokens while others have more than a dozen.
Mean Daily Return vs Volatility from May 14th, 2019, to June 14th, 2019
We abbreviated the names of several sectors to make it easier to view:
M = Market
DC = Digital Cash
CP/MP = Computing Power/Mining Pool
A/M = Advertising/Media
G/E = Gaming/Entertainment
C = Classics
D/GT = Dividend/Governance Token
E/T = Exchange Token
OC/I = Off Chain/Interoperability
Correlation Between Daily Returns of Each Sector
Correlation between daily returns of each sector from March 14th, 2019, to June 14th, 2019. Correlation ranges between -1 and 1. A correlation close to 1 or -1 means a very positive or negative relationship between the two subjects, respectively. A correlation close to 0 means no linear relationship between the two subjects.
The above figure shows the correlation between the daily returns of each sector. Similar to last week, the gaming and entertainment sector displayed the lowest correlation with the rest of the market, as tokens in this sector continued to show wild price movements.
Focus Spotlight — Egretia (EGT)
Since the start of June, the crypto market has been trading sideways with Bitcoin hovering around the $8000 region. Meanwhile, we see several coins deviating away from the overall market while displaying high volatility. One of these is Egretia, an altcoin in the gaming sector that recently joined the top 100 tokens.
Between May 14th and June 14th, the price Egretia (EGT) surged from $0.004453 to $0.019257, recording a 332% gain within one month. It currently has a market cap of $83 million and is sitting at the #87 spot on Coinmarketcap. It has a daily trading volume of around $36 million, with 80% of the volume traded on OKEx.
What is Egretia (EGT)?
EGT is an ERC-20 token created by Egretia Blockchain Labs and Egret Technology. The project was launched in early 2018 to build the “world’s most complete HTML5 blockchain workflow.” The team hopes to integrate blockchain technology into HTML5 interfaces, allowing developers to create games that utilize blockchain features such as digital wallets and smart contracts without having to spend extraneous time on examining underlying blockchain technology. According to Egretia, the goal is to connect their workflow to over 200,000 developers worldwide with its HTML5 content servicing 1 billion mobile devices.
The team launched their ICO in April 2018, raising approximately $4.8 million. Soon after the ICO the price of EGT entered a downward trend. By the end of the year, the token was traded at around $0.0003 with little price movement and almost no volume. Starting March 2019, the token entered a slight uptrend. Prices began to surge in early May, along with a significant rise in on-chain activity.
The uptrend followed an announcement on April 30 that the team will be releasing Football Master, a highly anticipated football game combining card collection features. The game utilizes blockchain technology to ensure transparency and openness for in-game trading. As of today, the game is still under development.
What caused the recent price jump?
The real upswing began on June 7th, two days after Egretia launched their testnet Phoenix, which opened access to their consensus protocol and blockchain nodes. According to the team, their blockchain explorer would also be available in the near future. At the same time, the team also released a number of products for testing including Egretia Launcher, SmartIDE as well as their web wallet. All of these products are tools designed to help developers connect to Egretia’s workflow.
The second rally arrived on June 11, corresponding to the first day of Egretia’s airdrop campaign on OKEx. The campaign was set between June 11 and June 18, in which a total of 5 million EGT would be rewarded to traders based on their net buying volume. Net buying volume is calculated as the total buying volume minus total selling volume. As a result, the token saw strong buying pressure at the start of the event.
With the recent price surge, the token was able to gain widespread attention as it entered the top 100 tokens on CoinMarketCap. On June 12, EGT became the top searched coin on MyToken, a popular crypto monitoring app used by many in the Chinese community.
Given the recent developments and partnership with OKEx, Egretia has established a strong presence in the crypto market. Assuming that the team is able to finalize their latest game in the upcoming weeks, they would have the chance of becoming a major player in the blockchain gaming industry.
Though the project seems to have experienced tremendous growth over the past few weeks, the latest price surge is most likely fueled by the trading competition on OKEx. Therefore, the token will unlikely to sustain its current price level and could experience a drop towards the end of the event. As always, investors should be cautious when trading tokens with high volatility.
Thank you for reading this week’s report! Please leave a comment below to share your thoughts and ideas on crypto trading!
Data Source
We included data from sources such as CoinMarketCap for analyzing price movements, volatility, mean daily return, and correlations between each sector; MyToken for sector breakdown; and Egretia official website and social media pages for project information.
Stay Tuned Here
KRONOS is a leading quantitative research firm based in Taipei, Shanghai and Beijing. We’re bringing new asset management strategies to the crypto world by leveraging our combined decades of experience trading in global traditional markets.
Website: https://kronostoken.com/
Telegram: https://t.me/Kronos_E
Twitter: https://twitter.com/KronosToken
Linkedin: https://www.linkedin.com/company/kronostoken/
