Coinspeaker partnered with ICOBox to provide our readers with this weekly analysis conducted by Professor Dima Kornilov and Dima Zaitsev devoted to cryptocurrency and digital assets markets changes that took place in February 2018, including over the last week (February 19-25, 2018).

Information as of February 25, 2018

This report was created by:

This report presents data on the cryptocurrency market changes during 2017-2018. Special emphasis has been placed on an analysis of the changes that took place in February 2018, including over the last week (February 19-25, 2018).

1. General cryptocurrency and digital assets market analysis (by week, month, quarter). Market trends.

    1.1 General cryptocurrency and digital assets market analysis (by week, month).

Table 1.1. Trends in capitalization of the cryptocurrency market and main cryptocurrencies from January 1, 2017, to February 25, 2018*

Parameter1-Jan-181-Feb-18MoM, %4-Feb-18DoD, %11-Feb-18DoD, %18-Feb-18DoD, %25-Feb-18DoD, %
1Total market capitalization, USD billion612.9517.2-15.6% 447.2-13.5% 422.2-5.6% 513.821.7%431.2-16.1%
2Altcoin market capitalization, USD billion376.2344.8-8.3%292.7-15.1%277.0-5.3%326.117.7%265.8-18.5%
Altcoin dominance, %61.4%66.7%65.4%65.6%63.5%61.6%
3Bitcoin price, $14 112.210 237.3-27.5% 9 175.7-10.4% 8 616.1-6.1% 11 123.429.1%9 796.4-11.9%
Bitcoin market capitalization, USD billion236.7172.4-27.2%154.6-10.3%145.2-6.0%187.729.2%165.4-11.9%
Bitcoin dominance, %38.6%33.3%34.6%34.4%36.5%38.4%
4Ethereum price, $755.81 119.448.1%964.7-13.8% 859.3-10.9% 973.413.3%839.5-13.8%
Ethereum market capitalization, USD billion73.110949.1%94-13.8%83.8-10.8%95.113.4%82.1-13.6%
Ethereum dominance, %11.9%21.1%21%19.9%18.5%19.0%
5Bitcoin Cash price, $2 534.81 491.1-41.2% 1 273.2-14.6% 1 255.6-1.4% 1 552.123.6%1 191.4-23.2%
Bitcoin Cash market capitalization, USD billion42.825.3-41%21.6-14.6%21.3-1.3%26.323.7%20.2-23.2%
Bitcoin Cash dominance, %7%4.9%4.8%5.0%5.1%4.7%
6Litecoin price, $231.7163.7-29.3% 160.4-2% 155.4-3.1% 230.548.3%208.1-9.7%
Litecoin market capitalization, USD billion12.69-28.8%8.8-1.9%8.6-2.9%12.748.6%11.5-9.5%
Litecoin dominance, %2.1%1.7%2%2.0%2.5%2.7%
7Smith + Crown Index27 54324 709-10.3% 22 262-9.9% 19 894-10.6% 24 79924.7%22 157-10.7%
8Volume (24h) 4 crypto, USD billion15.717.310.2%11.9-31.1%11.8-0.9%13.312.8%8.1-39.4%
Market cap 4 crypto, USD billion441.6351.6-20.4%305.7-13%292.0-4.5%356.122.0%305.0-14.4%
ZAK-4 Crypto index3.6%4.9%3.9%4.0%3.7%2.6%
4 crypto dominance, %72%68%68.4%69.2%69.3%70.7%
9Volume (24h) 8 crypto, USD billion17.21910.2%14.2-25.3%13.0-8.4%14.914.6%9.5-36.1%
Market cap 8 crypto, USD billion488.6393.4-19.5%341.6-13.2%325.7-4.6%397.422.0%339.1-14.7%
ZAK-8 Crypto index3.5%4.8%4.1%4.0%3.7%2.8%
8 crypto dominance, %79.7%76.1%76.4%77.2%77.3%78.6%

* Data as of February 25, 2018 (all figures calculated at 03:00 UTC)
** Since December 1, 2017, the ZAK-4 index has been calculated using the cryptocurrencies Bitcoin, Ethereum, Ripple, and Bitcoin Cash.
*** When calculating the ZAK-8 index, the cryptocurrencies with the largest capitalization are used. At present (February 25, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and NEO are used.
Data source: coinmarketcap.com,https://www.smithandcrown.com

Last week (February 19-25, 2018) was marked by a 16.1% fall in capitalization of the cryptocurrency market, from $513.8 billion to $431.2 billion (at 03:00 UTC).

The Smith + Crown Index for the week decreased from 24,799 to 22,157.

The dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on February 25, 2018, equaled 70.7% and 78.6%, respectively, with bitcoin dominance equaling 38.4% (see Table 1.1).

Figure 1. Cryptocurrency market capitalization, February 18-25, 2018

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1

Data source: coinmarketcap.com

Overall, during the period from February 18-25, 2018, cryptocurrency market capitalization decreased by approximately $80 billion, resulting in a depreciation of the prices of 460 of the top 500 cryptocurrencies and digital assets.

Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion decreased from 29 to 24, with the price of most of them falling over this period (except for Ethereum Classic and Nano), which is related to overall market trends.

The coins and tokens from the top 100 that demonstrated the largest growth in prices are given in fig. 2.

The growth and fall of cryptocurrency prices over the past week (February 19-25, 2018)

The prices of some cryptocurrencies may fluctuate from -50% to +50% over the course of a single day. Therefore, when analyzing cryptocurrency price trends, it is advisable to use their average daily amounts on various cryptoexchanges.

Below we consider the eight cryptocurrencies that showed a growth in price over the past week (fig. 2). All other coins and tokens from the top 100 in terms of market capitalization (according to the data of coinmarketcap.com) showed a fall in price.

Figure 2. Largest growth in prices over the last week

weekly-cryptocurrency-analysis-february-19-25-2018-figure-2

Data source: coinmarketcap.com
The change in price was calculated based on average daily data.

Tables 1.2 and 1.3 show the possible factors or events that could have influenced the fluctuation in prices for certain cryptocurrencies. Table 1.4 shows the possible factors or events that could have influenced the cryptocurrency market in general.

Table 1.2. Factors or events that could have led to a growth in cryptocurrency prices over the past week

Coins and tokensSymbolPrice growth over the week, %Average price in $ on Feb 25, 2018Market capitalization, USD billionFactors or events that could have led to a growth in cryptocurrency prices over the past week
1ReddCoinRDD38.09%$0.0110160.32ReddCoin was one of the few crypto assets to show growth over the week. Despite negative market trends, ReddCoin was able to stay in the black due to the favorable news on February 20 concerning the start of trading on the Korean exchange UpBit https://twitter.com/reddcoin/status/965963326105833473.
2NanoNANO36.57%$12.511.67Nano (the former RaiBlocks) also had favorable news this week, which helped this cryptocurrency to remain on the plus side. On February 21 the project announced on Twitter the release of a mobile wallet for Android https://twitter.com/garrytan/status/966122234271051776
3DigixDAODGD13.10%$351.270.70DigixDAO did not have any serious news, with the change in price being caused by price volatility.
4Ethereum ClassicETC11.97%$37.783.78The growth in Ethereum Classic this week was related to the positive news on the issue of a new, improved clienthttps://twitter.com/eth_classic/status/966679946524483584
5PolymathPOLY8.80%$1.260.30The change in the prices of the following cryptocurrencies was very slight for the cryptocurrency market and can be explained by market volatility.
6DentDENT8.10%$0.0273210.29
7ChainLinkLINK0.06%$0.6528180.23
8TetherUSDT0%$1.002.22

A fall in price was seen for 460 of the top 500 coins and tokens by capitalization over the past week. Ninety-two of the top 100 coins and tokens by capitalization showed a drop in prices. The ten most significant drops in price among the top 100 are shown in fig. 3.

Figure 3. Largest fall in prices over the past week

weekly-cryptocurrency-analysis-february-19-25-2018-figure-3

Table 1.3. Factors or events that could have led to a fall in cryptocurrency prices over the past week

Coins and tokensSymbolFall in price over the week, %Average price in $ on Feb 25, 2018Market capitalization, USD billionFactors or events that could have led to a fall in cryptocurrency prices over the past week
1RevainR-40.00%$2.300.42The overall negative market trend this week explains the large number of coins that fell in price by 30% or more. In most cases this price depreciation is explained by the movement of the market, which was very bearish this week. Revain was the biggest loser, which might be due to its recent triumphant growth. This price trend is very common for cryptocurrencies and tokens, which show a slide after sharp growth. This could be the result of market players trying to lock in their profits. Byteball Bytes shows the same trend as Revain. After significant growth of 150% from February 6-16, it has begun to fall steadily. All other cryptocurrencies and tokens fell in price more or less in line with market trends.
2Byteball BytesGBYTE-37.16%$435.700.28
3LiskLSK-33.26%$20.592.10
4CryptonexCNX-30.13%$5.300.24
5PillarPLR-30.07%$0.8648390.20
6DragonchainDRGN-29.83%$1.350.32
7VergeXVG-29.55%$0.0576780.84
8DigiByteDGB-29.12%$0.0328400.32
9NEMXEM-29.09%$0.4005883.61
10SiacoinSC-29.04%$0.0212410.69

Table 1.4 shows events that took place from February 19-25, 2018, and had an impact on both the prices of the dominant cryptocurrencies and the market in general, with an indication of their nature and type of impact.

Table 1.4. Key events of the week having an influence on cryptocurrency prices, February 19-25, 2018

Factors and events

(link to source)

Date of newsDate of event*DescriptionNature of impactType of impact
1.                    Cryptocurrency Exchange Bitfinex Adopts SegWit, While Coinbase Launches It Next Week [source: Coisnpeaker]February 20, 2018February 20, 2018This is good news for bitcoin, as integration with the SegWit upgrade might resolve the scalability problem to a certain extent and transaction costs on the bitcoin network will once again fall. This could have a positive effect on the cryptocurrency market as a whole.Market ⇑Favorable
2.                    669 Cryptocurrency Money-Laundering Cases Suspected in April-December [source: asia.nikkei.com]February 22, 2018February 22, 2018The National Police Agency of Japan has published statistics pursuant to which only 0.16% of all money laundering cases were connected with cryptoexchanges. This is good news for the crypto industry in Japan.Market ⇑Favorable

* Event already took place

To analyze trading activity on cryptocurrency exchanges, the ZAK-n Crypto index is calculated (see the Glossary). The values of the ZAK-4 Crypto and ZAK-8 Crypto indices are presented in Tables 1.1, 1.5.a, and 1.5.b. The 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) last week equaled from $8.1 billion to $14.1 billion (Table 1.5.a). This is somewhat lower than at the start of the month, when the 24-hour trading volume reached $23.7 billion, and the ZAK-4 Crypto index 10.3% (February 6, 2018).

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from February 1, 2018, to February 25, 2018)

CryptoBitcoin (BTC)Ethereum (ETH)Bitcoin Cash (BCH)Ripple (XRP)4 Crypto
 Price Open Volume (24h)Market capPrice Open Volume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capVolume (24h) 4 cryptoMarket cap 4 cryptoZAK-4 Crypto index
Date$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Feb 25, 20189 796 5.7 165.4 839 1.6 82.1 1 191 0.4 20.2 0.950.4 37.2 8.1 305.0 2.6%
Feb 24, 201810 288 6.9 173.7 862 1.9 84.3 1 267 0.4 21.5 1.000.5 39.0 9.7 318.5 3.1%
Feb 23, 20189 937 7.7 167.7 812 2.3 79.4 1 217 0.5 20.7 0.930.9 36.4 11.5 304.2 3.8%
Feb 22, 201810 660 8.0 179.9 849 2.2 83.0 1 305 0.5 22.2 1.010.9 39.5 11.6 324.6 3.6%
Feb 21, 201811 372 9.4 191.9 894 2.5 87.4 1 413 0.6 24.0 1.080.9 42.2 13.4 345.5 3.9%
Feb 20, 201811 232 9.9 189.5 944 2.5 92.2 1 543 0.8 26.2 1.140.8 44.6 14.1 352.6 4.0%
Feb 19, 201810 553 7.7 178.1 922 2.2 90.0 1 483 0.6 25.2 1.120.6 43.8 11.0 337.1 3.3%
Feb 18, 201811 123 8.7 187.7 973 2.6 95.1 1 552 0.9 26.3 1.201.1 47.0 13.3 356.1 3.7%
Feb 17, 201810 208 8.7 172.2 945 2.5 92.3 1 548 0.6 26.3 1.141.2 44.4 13.0 335.1 3.9%
Feb 16, 201810 136 7.3 171.0 935 2.4 91.3 1 373 1.0 23.3 1.140.6 44.7 11.2 330.2 3.4%
Feb 15, 20189 488 9.1 160.0 924 2.9 90.2 1 359 0.5 23.1 1.141.2 44.4 13.7 317.7 4.3%
Feb 14, 20188 600 7.9 145.0 844 2.8 82.4 1 229 0.6 20.9 1.031.5 40.0 12.8 288.3 4.4%
Feb 13, 20188 927 5.7 150.5 869 2.1 84.8 1 285 0.4 21.8 1.080.9 42.1 9.1 299.3 3.1%
Feb 12, 20188 141 6.3 137.3 818 2.2 79.8 1 222 0.5 20.7 1.011.8 39.3 10.7 277.0 3.9%
Feb 11, 20188 616 6.1 145.2 859 2.5 83.8 1 256 0.7 21.3 1.072.6 41.6 11.8 292.0 4.0%
Feb 10, 20188 720 7.8 147.0 882 2.9 86.1 1 312 0.7 22.2 0.954.7 37.0 16.1 292.2 5.5%
Feb 9, 20188 272 6.8 139.4 818 2.5 79.8 1 274 1.1 21.6 0.801.7 31.1 12.1 271.9 4.5%
Feb 8, 20187 638 9.3 128.7 756 3.7 73.7 952 2.2 16.1 0.730.9 28.4 16.2 247.0 6.6%
Feb 7, 20187 755 9.2 130.7 790 3.9 77.0 971 0.9 16.5 0.771.1 30.2 15.1 254.4 5.9%
Feb 6, 20187 052 14.0 118.8 708 6.5 69.0 891 0.8 15.1 0.712.4 27.5 23.7 230.4 10.3%
Feb 5, 20188 271 9.3 139.3 835 4.3 81.3 1 160 0.6 19.7 0.831.3 32.2 15.4 272.5 5.7%
Feb 4, 20189 176 7.1 154.6 965 3.0 94.0 1 273 0.7 21.6 0.911.2 35.6 11.9 305.7 3.9%
Feb 3, 20188 852 7.3 149.1 919 3.2 89.5 1 194 0.5 20.2 0.892.0 34.8 12.9 293.6 4.4%
Feb 2, 20189 142 12.7 154.0 1 036 6.7 100.8 1 273 0.9 21.6 0.963.5 37.5 23.9 313.8 7.6%
Feb 1, 201810 237 10.0 172.4 1 119 5.3 109.0 1 491 0.7 25.3 1.161.4 45.0 17.3 351.6 4.9%

* Data as of February 25, 2018, 00:00 UTC
** Data source: coinmarketcap.com

The 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, NEO, and Cardano) fell to $9.5 billion at the end of last week (Table 1.5.b), i.e. a mere 2.8% of their market capitalization. The ZAK-4 Crypto and ZAK-8 Crypto indices are considered in more detail in Tables 1.5.a and 1.5.b.

Table 1.5.b. Daily ZAK-8 Crypto index calculation (continuation of Table 1.5.а)

CryptoStellar (XLM)Cardano (ADA)NEO (NEO)Litecoin (LTC)8 Crypto
 Price OpenVolume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capVolume (24h)Market capZAK-8 Crypto index
Date$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Feb 25, 20180.350.04 6.5 0.3220.28.4 118.30.117.7 2081.011.5 9.5 339.1 2.8%
Feb 24, 20180.380.03 7.1 0.3440.18.9 121.40.167.9 2110.911.7 11.0 354.0 3.1%
Feb 23, 20180.360.06 6.7 0.3350.28.7 113.40.197.4 1941.110.7 13.0 337.7 3.8%
Feb 22, 20180.390.07 7.3 0.3630.29.4 120.60.197.8 2131.011.8 13.0 360.9 3.6%
Feb 21, 20180.400.13 7.4 0.3760.29.7 127.70.218.3 2311.212.8 15.2 383.7 4.0%
Feb 20, 20180.450.10 8.4 0.3910.310.1 138.00.249.0 2231.712.3 16.5 392.4 4.2%
Feb 19, 20180.450.06 8.3 0.3870.210.0 127.20.208.3 2150.811.9 12.2 375.6 3.2%
Feb 18, 20180.480.07 8.8 0.4180.310.8 136.40.218.9 2311.012.7 14.9 397.4 3.7%
Feb 17, 20180.460.10 8.4 0.4020.310.4 131.00.298.5 2300.912.7 14.6 375.1 3.9%
Feb 16, 20180.450.05 8.3 0.4100.210.6 123.00.198.0 2261.312.5 12.9 369.6 3.5%
Feb 15, 20180.450.11 8.3 0.3950.310.2 122.00.227.9 2122.111.7 16.4 355.9 4.6%
Feb 14, 20180.410.19 7.6 0.3740.39.7 110.90.237.2 1602.48.8 15.9 321.6 5.0%
Feb 13, 20180.400.20 7.3 0.3830.29.9 113.60.187.4 1620.58.9 10.2 332.8 3.1%
Feb 12, 20180.370.06 6.9 0.3730.29.7 104.20.276.8 1500.58.3 11.8 308.6 3.8%
Feb 11, 20180.410.09 7.5 0.4050.310.5 110.50.267.2 1550.58.6 13.0 325.7 4.0%
Feb 10, 20180.400.23 7.3 0.3871.010.0 117.20.367.6 1630.69.0 18.2 326.2 5.6%
Feb 9, 20180.360.14 6.6 0.3530.49.1 112.00.217.3 1500.78.3 13.6 303.2 4.5%
Feb 8, 20180.340.12 6.4 0.3440.38.9 104.10.556.8 1380.97.6 18.1 276.6 6.5%
Feb 7, 20180.370.19 6.8 0.3670.79.5 105.10.576.8 1420.87.9 17.3 285.4 6.1%
Feb 6, 20180.340.52 6.2 0.3311.38.6 84.10.665.5 1281.17.0 27.3 257.7 10.6%
Feb 5, 20180.380.34 7.1 0.3850.710.0 107.60.317.0 1490.88.2 17.6 304.8 5.8%
Feb 4, 20180.430.23 7.9 0.4340.811.2 122.20.207.9 1601.08.8 14.2 341.6 4.1%
Feb 3, 20180.410.28 7.5 0.4011.410.4 121.00.267.9 1310.77.2 15.6 326.6 4.8%
Feb 2, 20180.460.40 8.4 0.4191.410.9 125.60.558.2 1430.87.8 27.1 349.1 7.8%
Feb 1, 20180.540.17 10.0 0.5160.613.4 146.00.369.5 1640.59.0 19.0 393.4 4.8%

Table 1.6 gives a list of events, information on which appeared last week, which could impact both the prices of specific cryptocurrencies and the market in general.

Table 1.6. Events that could have an influence on cryptocurrency prices in the future

 

Factors and events

(link to source)

Date of newsDate of event*DescriptionNature of impactType of impact
1.Congress Sets Sights on Federal Cryptocurrency Rules [source: Reuters]February 19, 2018n/aBoth houses of the US Congress agree that the crypto industry must be regulated, and their similarity of opinion shows that new laws could be drafted in the near future and passed by the Congress without difficulty. At present, the USA does not have any agency specializing in the regulation of cryptocurrencies.MarketUncertain
2.Turkey, Iran to Release State-Backed Cryptocurrencies on Heels of Venezuela’s Petro [source: Cointelegraph]February 23, 2018n/aThe governments of Iran and Turkey are considering the possibility of issuing their own cryptocurrencies.Market ⇑Favorable

 

    1.2 Market trends

The weekly cryptocurrency and digital asset market trends from October 1, 2017, to February 25, 2018, are presented as graphs (Fig. 1.1-1.5)*.

Table 1.7. Legends and descriptions of the graphs

Global FiguresFigure**Description
Total cryptocurrency market capitalization, USD millionFig. 1.1This figure shows cryptocurrency and digital asset market capitalization trends from October 1, 2017.
The rate of market change (as a % to the beginning of 2017)Fig. 1.1This figure shows the % change in cryptocurrency and digital asset market capitalization compared to January 1, 2017.
Change in the market capitalization (in USD million compared to previous period)Fig. 1.2This figure shows the weekly change in USD million (increase or decrease) in cryptocurrency and digital asset market capitalization from October 1, 2017.
The rate of market change (as a % compared to the previous period)Fig. 1.2This figure shows the % of weekly change (increase or decrease) in cryptocurrency and digital asset market capitalization from October 1, 2017.
Number of cryptocurrencies and digital assetsFig.1.3This figure shows the trends in the increase of the number of cryptocurrencies and digital assets circulating on cryptocurrency exchanges. On January 1, 2017, their number was 617, and as of February 25, 2018, this number had already reached 1,491.
Average market capitalization, USD millionFig. 1.3This figure reflects the growth in the average cryptocurrency and digital asset market capitalization from October 1, 2017, i.e. the ratio between the market capitalization of all cryptocurrencies and digital assets and their number.
Forecast of total cryptocurrency market capitalizationFig. 1.4, 1.5This figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.

* Data as of February 25, 2018, 00:00 UTC
** NB! Average daily data are given in the graphs below. For this reason, the figures in the graphs may differ from the data in Table 1.1, where all figures were calculated at 03:00 UTC. These differences in the figures may be significant during periods of high cryptocurrency market volatility.
Data source: coinmarketcap.com
* Average daily data (according to the data of coinmarketcap.com).

Figure 1.1. Total cryptocurrency market capitalization*

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1-1

Figure 1.1 shows a graph of the weekly cryptocurrency market change from October 1, 2017, to February 25, 2018. Over this period, market capitalization increased from $146.9 billion to $431.9 billion, a growth of 2,340% relative to the start of 2017. Over the first week of January 2018, total market capitalization exceeded $800 billion for the first time, but there was a downward adjustment over the next five weeks (January 8-February 11, 2018), after which the market again began to grow (February 11-18, 2018). Over the past week (February 19-25, 2018) capitalization decreased from $498.3 billion to $431.9 billion (as of February 25, 2018, based on the average figures from coinmarketcap.com)

 Figure 1.2. Change in market capitalization

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1-2

The market is susceptible to sudden and drastic fluctuations. The highest growth rate in Q4 2017 (December 17-24, 2017) was around $200 billion, or 54%. During the first week of January, market capitalization increased by approximately $250 billion, or 44%, but over the following five weeks decreases of approximately $100 billion, $130 billion, $20 billion, $136 billion, and $46 billion, respectively, were seen. Next there was a week of growth of $101.6 billion. Last week the market again fell by 13%, or by $66.4 billion (with due account of average daily data, see fig. 1.2).

Figure 1.3. Number of cryptocurrencies and digital assets

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1-3

Data source: coinmarketcap.com

Since the beginning of October 2017, the total number of cryptocurrencies and digital assets considered when calculating market capitalization has increased from 1,091 to 1,491. Over the last week, the number of cryptocurrencies and digital assets increased by 22, from 1,469 to 1,491. That being said, their average capitalization decreased from $339.2 million to $289.6 million.

Over the past month, 69 new coins and tokens have appeared on coinmarketcap.com, but it should be noted that a number of other coins and tokens were also excluded from the list.

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1-4

weekly-cryptocurrency-analysis-february-19-25-2018-figure-1-5

It has been apparent for several weeks in a row now that nearly all cryptocurrencies are sensitive to the overall mood of the cryptocurrency market. The correlation between the prices for most cryptocurrencies and total cryptocurrency market capitalization is obvious. However, the level of sensitivity of prices to a change in total capitalization differs. Consequently, this attribute can be used when betting on a fall or growth in capitalization.

The activity of cryptoexchanges is quite often affected by the process of regulation of the cryptocurrency market. In particular, on March 9 the Bittrex exchange will stop servicing citizens of those countries subject to US sanctions. A similar decision was taken in August 2017 by the Poloniex cryptoexchange, the purchase of which by the company Circle (founded in 2013) was announced today (February 26, 2018). Circle is becoming one of the most influential representatives of the crypto industry, with plans to create the bank of the future. The company has fairly solid investors: the investment bank Goldman Sachs, the Chinese internet giant Baidu, and venture capitalist Jim Breyer.

It is clear that institutional players are gradually entering the cryptocurrency market, which in the future will undoubtedly lead to a significant growth in capitalization. It should also be noted that the EU Committee on Economic and Monetary Affairs is holding a hearing today on the issues surrounding cryptocurrencies. All of these factors lead to a fairly optimistic outlook on the prospects for recovery and growth of the cryptocurrency market.

The Glossary is given in Annex 1.

Annex 1 – Glossary

Key termsDefinition
Initial coin offering, ICOA form of collective support of innovative technological projects, a type of presale and attracting of new backers through initial coin offerings to future holders in the form of blockchain-based cryptocurrencies (tokens) and digital assets.
Market capitalizationValue of an asset calculated based on its current market (exchange) price. This economic indicator is used to assess the total aggregate value of market instruments, players, and markets. [Source: https://en.wikipedia.org].
Cryptocurrency market capitalizationAggregate market value of cryptocurrencies circulating on the market.
Total cryptocurrency market capitalizationCryptocurrency and digital asset market capitalization, i.e. the aggregate market value of all cryptocurrencies and digital assets circulating on the market.
Token rewardToken performance (current token price / token sale price during the ICO), i.e. the reward per $1 spent on buying tokens.
DominanceMarket share, i.e. the ratio of market capitalization of a particular cryptocurrency (token) to total cryptocurrency market capitalization. Expressed as a %.
Token sale price

Current token price

Token sale price during the ICO.

Current token price.

Not Mineable

 

A coin that is not mineable. The term is used for cryptocurrencies (tokens) which cannot be mined or issued through mining.
Pre-minedA pre-mined coin. The term is used for cryptocurrencies (tokens) which are issued through mining, and a certain number of coins (tokens) have been created and distributed among certain users at the start of the project.
The rate of market increase (as a % compared to the beginning of the year)The rate of market increase (as a % compared to the start of the year), i.e. by how many % points did market capitalization increase compared to the start of the year.
The growth rate of the market (as a % compared to the beginning of the year)The market growth (as a % compared to the start of the year), i.e. by how many times did market capitalization grow compared to the start of the year.
Increase in market capitalization (in USD million compared to the previous period)Increase in cryptocurrency and digital asset market capitalization (in USD million compared to the previous period), i.e. by how many USD million did market capitalization increase over the period.
The rate of market increase (as a % compared to the previous period)Rate of market increase (as a % compared to the previous period), i.e. by how many % points did market capitalization increase over the period.
The market growth rate (as a % compared to the previous period)Market growth rate (as a % compared to the previous period), i.e. by how many times did market capitalization grow compared to the previous period.
Number of cryptocurrencies and digital assetsNumber of cryptocurrencies and digital assets. At the time when this glossary was compiled over 1,070 cryptocurrencies and digital assets were circulating on the market.
Average market capitalizationAverage market capitalization, i.e. the ratio of the market capitalization of all cryptocurrencies and digital assets to their number.
Token return Performance of funds spent on buying tokens or the ratio of the current token price to the token sale price, i.e. performance of $1 spent on buying tokens during the token sale, if listed on an exchange for USD.
ETH reward – current dollar value of $1 spent on buying tokens during the token saleAlternative performance indicator of funds spent on buying tokens during the ICO or the ratio of the current ETH rate to its rate at the start of the token sale, i.e. if instead of buying tokens $1 was spent on buying ETH at its rate at the start of the token sale and then it was sold at the current ETH rate.
BTC reward– current dollar value of $1 spent on buying tokens during the token saleSimilar to the above: Alternative performance indicator of funds spent on buying tokens during the token sale, i.e. if instead of buying tokens $1 was spent on buying BTC at its rate at the start of the token sale and then it was sold at the current BTC rate.
Token/ETH reward This ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying ETH. If the result is over 1, the backer spent his funds more efficiently on buying tokens than if he were to have spent his funds on ETH.
Token/BTC reward This ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying BTC. If the result is over 1, the backer spent his funds more efficiently on buying tokens than if he were to have spent his funds on BTC.
ZAK-n Crypto indexThe index is calculated as a percentage and represents a ratio between the 24-hour trading volume (transactions) on cryptocurrency exchanges per day (Volume 24h) for n dominant cryptocurrencies to their total market capitalization.

ZAK-4 Crypto index calculations include four dominant cryptocurrencies with the greatest market capitalization: Bitcoin, Ethereum, Bitcoin Cash, and Ripple.

ZAK-8 Crypto index calculations include the trading volume and market capitalization for eight cryptocurrencies.


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