TokenInsight — Weekly Report 6/30–7/6

TokenInsight Market Trends

During the period from June 30 to July 6, the average TI index reflecting the overall performance of the blockchain industry was 721.10 points and increased by 21.44 points(+2.97%), with a maximum of 812.24 points and a minimum of 664.56 points. Compared to last week, the TI index rose by 13.71%.

During the period from June 30 to July 6, the average TIG index reflecting the overall performance of the blockchain industry was 785.62 points and decreased by 97.86 points(-11.08%), with a maximum of 848.68 points and a minimum of 677.77 points. Compared to last week, the TIG index increased by 1.48%.

On July 1 ,2 and 5, the daily continuously compounded rate of return of BTC and ETH Index was significantly higher than that of TI. Only on July 3, the daily continuously compounded rate of return of TI index was higher than that of ETH and BTC but it was lower than BTC and higher than ETH on June 30 and July 4.

From June 30th to July 6th, the average price of BTC was $6,494.23. This week, BTC fell to its lowest point to $5,900.16 on June 30th around 2:00am and peaked at $6,748.55 on July 4th at 10:00pm. In total, the price of BTC increased this week by 11.44%, compared to this same period last week. Community popularity has climbed consecutive two weeks and more than 200,000 BTC were exchanged, possibly suffering because of the limited influence caused by the Binance Event.

From June 30th to July 6th, the average price of ETC was $16.42. This week, ETC fell to its lowest point to $14.55 on June 30th around 4:00am and peaked at $18.12 on July 6th at 21pm. In total, the price of ETC increased this week by 22.05% compared to this same period last week.

From June 30th to July 6th, the average price of EOS was $8.51. This week, EOS fell to its lowest point to $7.33 on June 30th around 1:00am and peaked at $9.26 on July 3rd at 12pm. In total, the price of EOS increased this week by 15.18% compared to this same period last week.

From June 30th to July 6th, the average price of ETC was $16.42. This week, ETC fell to its lowest point to $14.55 on June 30th around 4:00am and peaked at $18.12 on July 6th at 21pm. In total, the price of ETC increased this week by 22.05% compared to this same period last week.

From June 30th to July 6th, the average price of XRP was $0.47. This week, XRP fell to its lowest point to $0.43 on June 30th around 4:00am and peaked at $0.51 on July 3rd at 13pm. In total, the price of XRP increased this week by 8.43% compared to this same period last week.

From June 30th to July 6th, the average price of BCH was $749.41. This week, BCH fell to its lowest point to $659.41 on June 30th around 12:00am and peaked at $814.19 on July 3rd at 13pm. In total, the price of BCH increased this week by 15.69% compared to this same period last week.

TokenInsight Analysis

In this week, the trends of major cryptocurrencies were similar with BTC. The highest price appeared in mid-week, and has fallen afterwards. As recorded, the highest 22.05% increase of ETC will continue to grow, which was mainly driven by Coinbase’s announcement about launching ETC as one if its hosted services. XRP increased by roughly 8.43%, the lowest seen from major cryptocurrencies, mainly due to the three alleged lawsuits against Ripple Labs and its executives on July 5.

Correlation Coefficient

TokenInsight’s TI-Index saw more than 90% correlation with all major cryptocurrency tokens this week except ETC. ETC’s weekly return was less than 80%, compared to the correlation coefficient of other tokens. In fact, besides the correlation coefficient between ETH and XRP being 86.90%, the relationship between the rest was above 90%.

Token Industry Sector Analysis

According to TokenInsight’s industry classification for tokens, currently 14 industries have enjoyed positive returns this week, accounting for two-thirds of the overall 21 token industry sectors. Eliminating the outlier from the telecommunications industry (+375.79%), the top 3 gainers this week were artificial intelligence (+12.42%), data storage (+10.46%), and public services (+9.42%), while the top 3 losers were shared economy (-11.89%), healthcare (-5.48%), and electronic business (-5.14%).

Among major cryptocurrency industries, internet of things (IOT) and general platform sectors both experienced respectable growth at 8.77% and 4.49%.

ETC (IOT sector), ETH (general platform), EOS (general platform) all experienced significant increases placing this week’s sectors at 6th and 7th place overall. Meanwhile, payment currencies BTC and XRP remained less stable and causing the entire payment sector to grow at only 2.32% and ranked 12th overall.

TokenInsight Week Indicators

Turnover Ratio

Turnover Ratio= current trade volume/ current market value

The turnover ratio is a measurement of token liquidity calculated by dividing total trading volume over a period by the total market value for that same period. The higher the turnover ratio, the more frequently traded a token is. This points to a clear indication of higher trading activity.

During June 30th to July 6th, the market turnover ratio decreased by 1.74%. By July 6th, it was approximately 5.63%. ETC and EOS enjoyed a higher turnover ratio than that of the market, being respectively 4.44 and 1.35 times of the latter. The popularity of ETC was mainly driven by the hosted service of Coinbase. The turnover ratio of BTC, ETH, and XRP were all lower than the market, indicating a relatively low level of activity.

TIPV Ratio

TIPV ratio= Current Market Value / Current Trading Volume

A significant negative correlation can be seen between the TIPV ratio and the closing price of cryptocurrencies throughout different industries. This follows a similar association to the traditional P/E ratio seen in finance. Being, the lower the TIPV ratio, the higher the potential profitability of a cryptocurrency.

During June 30th to July 6th, the market TIPV ratio increased by 1.77% to 17.76 by July 6th. The TIPV ratio of EOS and ETC are lower than the market while XRP, ETH and BTC enjoyed a higher ratio, among which the TIPV ratio of XRP is 4.34 times of the market, indicating a low potential yield.

Sharpe Ratio

Sharpe ratio =(r- rf )/σ

where r is the asset return, rf is the risk free rate, σ is the standard deviation of the asset excess return.

The Sharpe ratio is a measure of an investment’s excess return, above the risk-free rate, per unit of standard deviation. It is calculated by taking the return of the investment, subtracting the risk-free rate, and dividing this result by the investment’s standard deviation. The higher a Sharpe ratio is, the higher potential for returns.

From June 30th to July 6th, the sharpe ratio of all 5 tokens featured showed positive results. ETH, EOS, and XRP have increased from negative to positive. ETC gained the largest growth of 72.87% this week compared to the initial 16.06%, and ETH rose to 47.93% from 7.11%. ETC and ETH are more investable.

The Number of Github Commits

Compared to last week, the ranking of ZRX rose from 3rd place to 1st overall on Github Commits by 9%. ELF ranked at 1st last week but has fallen to the 2nd, who’s the number of Github Commits decreased by 6%. The number of SHOW Github Commits decreased by 12%, which ranked at 3rd this week. While ZIL, TRUE and ZSC dropped by 61%,7%and 2%. Other projects are newcomers to this week.

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