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*

Parameter 1-Jan-18 1-Feb-18 MoM, % 4-Feb-18 DoD, % 11-Feb-18 DoD, % 18-Feb-18 DoD, % 25-Feb-18 DoD, %
1 Total market capitalization, USD billion 612.9 517.2 -15.6% 447.2 -13.5% 422.2 -5.6% 513.8 21.7% 431.2 -16.1%
2 Altcoin market capitalization, USD billion 376.2 344.8 -8.3% 292.7 -15.1% 277.0 -5.3% 326.1 17.7% 265.8 -18.5%
Altcoin dominance, % 61.4% 66.7% 65.4% 65.6% 63.5% 61.6%
3 Bitcoin price, $ 14 112.2 10 237.3 -27.5% 9 175.7 -10.4% 8 616.1 -6.1% 11 123.4 29.1% 9 796.4 -11.9%
Bitcoin market capitalization, USD billion 236.7 172.4 -27.2% 154.6 -10.3% 145.2 -6.0% 187.7 29.2% 165.4 -11.9%
Bitcoin dominance, % 38.6% 33.3% 34.6% 34.4% 36.5% 38.4%
4 Ethereum price, $ 755.8 1 119.4 48.1% 964.7 -13.8% 859.3 -10.9% 973.4 13.3% 839.5 -13.8%
Ethereum market capitalization, USD billion 73.1 109 49.1% 94 -13.8% 83.8 -10.8% 95.1 13.4% 82.1 -13.6%
Ethereum dominance, % 11.9% 21.1% 21% 19.9% 18.5% 19.0%
5 Bitcoin Cash price, $ 2 534.8 1 491.1 -41.2% 1 273.2 -14.6% 1 255.6 -1.4% 1 552.1 23.6% 1 191.4 -23.2%
Bitcoin Cash market capitalization, USD billion 42.8 25.3 -41% 21.6 -14.6% 21.3 -1.3% 26.3 23.7% 20.2 -23.2%
Bitcoin Cash dominance, % 7% 4.9% 4.8% 5.0% 5.1% 4.7%
6 Litecoin price, $ 231.7 163.7 -29.3% 160.4 -2% 155.4 -3.1% 230.5 48.3% 208.1 -9.7%
Litecoin market capitalization, USD billion 12.6 9 -28.8% 8.8 -1.9% 8.6 -2.9% 12.7 48.6% 11.5 -9.5%
Litecoin dominance, % 2.1% 1.7% 2% 2.0% 2.5% 2.7%
7 Smith + Crown Index 27 543 24 709 -10.3% 22 262 -9.9% 19 894 -10.6% 24 799 24.7% 22 157 -10.7%
8 Volume (24h) 4 crypto, USD billion 15.7 17.3 10.2% 11.9 -31.1% 11.8 -0.9% 13.3 12.8% 8.1 -39.4%
Market cap 4 crypto, USD billion 441.6 351.6 -20.4% 305.7 -13% 292.0 -4.5% 356.1 22.0% 305.0 -14.4%
ZAK-4 Crypto index 3.6% 4.9% 3.9% 4.0% 3.7% 2.6%
4 crypto dominance, % 72% 68% 68.4% 69.2% 69.3% 70.7%
9 Volume (24h) 8 crypto, USD billion 17.2 19 10.2% 14.2 -25.3% 13.0 -8.4% 14.9 14.6% 9.5 -36.1%
Market cap 8 crypto, USD billion 488.6 393.4 -19.5% 341.6 -13.2% 325.7 -4.6% 397.4 22.0% 339.1 -14.7%
ZAK-8 Crypto index 3.5% 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 tokens Symbol Price growth over the week, % Average price in $ on Feb 25, 2018 Market capitalization, USD billion Factors or events that could have led to a growth in cryptocurrency prices over the past week
1 ReddCoin RDD 38.09% $0.011016 0.32 ReddCoin 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.
2 Nano NANO 36.57% $12.51 1.67 Nano (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
3 DigixDAO DGD 13.10% $351.27 0.70 DigixDAO did not have any serious news, with the change in price being caused by price volatility.
4 Ethereum Classic ETC 11.97% $37.78 3.78 The 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
5 Polymath POLY 8.80% $1.26 0.30 The change in the prices of the following cryptocurrencies was very slight for the cryptocurrency market and can be explained by market volatility.
6 Dent DENT 8.10% $0.027321 0.29
7 ChainLink LINK 0.06% $0.652818 0.23
8 Tether USDT 0% $1.00 2.22

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 tokens Symbol Fall in price over the week, % Average price in $ on Feb 25, 2018 Market capitalization, USD billion Factors or events that could have led to a fall in cryptocurrency prices over the past week
1 Revain R -40.00% $2.30 0.42 The 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.
2 Byteball Bytes GBYTE -37.16% $435.70 0.28
3 Lisk LSK -33.26% $20.59 2.10
4 Cryptonex CNX -30.13% $5.30 0.24
5 Pillar PLR -30.07% $0.864839 0.20
6 Dragonchain DRGN -29.83% $1.35 0.32
7 Verge XVG -29.55% $0.057678 0.84
8 DigiByte DGB -29.12% $0.032840 0.32
9 NEM XEM -29.09% $0.400588 3.61
10 Siacoin SC -29.04% $0.021241 0.69

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 news Date of event* Description Nature of impact Type of impact
1.                     Cryptocurrency Exchange Bitfinex Adopts SegWit, While Coinbase Launches It Next Week [source: Coisnpeaker] February 20, 2018 February 20, 2018 This 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, 2018 February 22, 2018 The 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)

Crypto Bitcoin (BTC) Ethereum (ETH) Bitcoin Cash (BCH) Ripple (XRP) 4 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h) 4 crypto Market cap 4 crypto ZAK-4 Crypto index
Date $ USD billion USD billion $ USD billion USD billion $ USD billion USD billion $ USD billion USD billion USD billion USD billion %
Feb 25, 2018 9 796 5.7 165.4 839 1.6 82.1 1 191 0.4 20.2 0.95 0.4 37.2 8.1 305.0 2.6%
Feb 24, 2018 10 288 6.9 173.7 862 1.9 84.3 1 267 0.4 21.5 1.00 0.5 39.0 9.7 318.5 3.1%
Feb 23, 2018 9 937 7.7 167.7 812 2.3 79.4 1 217 0.5 20.7 0.93 0.9 36.4 11.5 304.2 3.8%
Feb 22, 2018 10 660 8.0 179.9 849 2.2 83.0 1 305 0.5 22.2 1.01 0.9 39.5 11.6 324.6 3.6%
Feb 21, 2018 11 372 9.4 191.9 894 2.5 87.4 1 413 0.6 24.0 1.08 0.9 42.2 13.4 345.5 3.9%
Feb 20, 2018 11 232 9.9 189.5 944 2.5 92.2 1 543 0.8 26.2 1.14 0.8 44.6 14.1 352.6 4.0%
Feb 19, 2018 10 553 7.7 178.1 922 2.2 90.0 1 483 0.6 25.2 1.12 0.6 43.8 11.0 337.1 3.3%
Feb 18, 2018 11 123 8.7 187.7 973 2.6 95.1 1 552 0.9 26.3 1.20 1.1 47.0 13.3 356.1 3.7%
Feb 17, 2018 10 208 8.7 172.2 945 2.5 92.3 1 548 0.6 26.3 1.14 1.2 44.4 13.0 335.1 3.9%
Feb 16, 2018 10 136 7.3 171.0 935 2.4 91.3 1 373 1.0 23.3 1.14 0.6 44.7 11.2 330.2 3.4%
Feb 15, 2018 9 488 9.1 160.0 924 2.9 90.2 1 359 0.5 23.1 1.14 1.2 44.4 13.7 317.7 4.3%
Feb 14, 2018 8 600 7.9 145.0 844 2.8 82.4 1 229 0.6 20.9 1.03 1.5 40.0 12.8 288.3 4.4%
Feb 13, 2018 8 927 5.7 150.5 869 2.1 84.8 1 285 0.4 21.8 1.08 0.9 42.1 9.1 299.3 3.1%
Feb 12, 2018 8 141 6.3 137.3 818 2.2 79.8 1 222 0.5 20.7 1.01 1.8 39.3 10.7 277.0 3.9%
Feb 11, 2018 8 616 6.1 145.2 859 2.5 83.8 1 256 0.7 21.3 1.07 2.6 41.6 11.8 292.0 4.0%
Feb 10, 2018 8 720 7.8 147.0 882 2.9 86.1 1 312 0.7 22.2 0.95 4.7 37.0 16.1 292.2 5.5%
Feb 9, 2018 8 272 6.8 139.4 818 2.5 79.8 1 274 1.1 21.6 0.80 1.7 31.1 12.1 271.9 4.5%
Feb 8, 2018 7 638 9.3 128.7 756 3.7 73.7 952 2.2 16.1 0.73 0.9 28.4 16.2 247.0 6.6%
Feb 7, 2018 7 755 9.2 130.7 790 3.9 77.0 971 0.9 16.5 0.77 1.1 30.2 15.1 254.4 5.9%
Feb 6, 2018 7 052 14.0 118.8 708 6.5 69.0 891 0.8 15.1 0.71 2.4 27.5 23.7 230.4 10.3%
Feb 5, 2018 8 271 9.3 139.3 835 4.3 81.3 1 160 0.6 19.7 0.83 1.3 32.2 15.4 272.5 5.7%
Feb 4, 2018 9 176 7.1 154.6 965 3.0 94.0 1 273 0.7 21.6 0.91 1.2 35.6 11.9 305.7 3.9%
Feb 3, 2018 8 852 7.3 149.1 919 3.2 89.5 1 194 0.5 20.2 0.89 2.0 34.8 12.9 293.6 4.4%
Feb 2, 2018 9 142 12.7 154.0 1 036 6.7 100.8 1 273 0.9 21.6 0.96 3.5 37.5 23.9 313.8 7.6%
Feb 1, 2018 10 237 10.0 172.4 1 119 5.3 109.0 1 491 0.7 25.3 1.16 1.4 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)

Crypto Stellar (XLM) Cardano (ADA) NEO (NEO) Litecoin (LTC) 8 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h) Market cap ZAK-8 Crypto index
Date $ USD billion USD billion $ USD billion USD billion $ USD billion USD billion $ USD billion USD billion USD billion USD billion %
Feb 25, 2018 0.35 0.04 6.5 0.322 0.2 8.4 118.3 0.11 7.7 208 1.0 11.5 9.5 339.1 2.8%
Feb 24, 2018 0.38 0.03 7.1 0.344 0.1 8.9 121.4 0.16 7.9 211 0.9 11.7 11.0 354.0 3.1%
Feb 23, 2018 0.36 0.06 6.7 0.335 0.2 8.7 113.4 0.19 7.4 194 1.1 10.7 13.0 337.7 3.8%
Feb 22, 2018 0.39 0.07 7.3 0.363 0.2 9.4 120.6 0.19 7.8 213 1.0 11.8 13.0 360.9 3.6%
Feb 21, 2018 0.40 0.13 7.4 0.376 0.2 9.7 127.7 0.21 8.3 231 1.2 12.8 15.2 383.7 4.0%
Feb 20, 2018 0.45 0.10 8.4 0.391 0.3 10.1 138.0 0.24 9.0 223 1.7 12.3 16.5 392.4 4.2%
Feb 19, 2018 0.45 0.06 8.3 0.387 0.2 10.0 127.2 0.20 8.3 215 0.8 11.9 12.2 375.6 3.2%
Feb 18, 2018 0.48 0.07 8.8 0.418 0.3 10.8 136.4 0.21 8.9 231 1.0 12.7 14.9 397.4 3.7%
Feb 17, 2018 0.46 0.10 8.4 0.402 0.3 10.4 131.0 0.29 8.5 230 0.9 12.7 14.6 375.1 3.9%
Feb 16, 2018 0.45 0.05 8.3 0.410 0.2 10.6 123.0 0.19 8.0 226 1.3 12.5 12.9 369.6 3.5%
Feb 15, 2018 0.45 0.11 8.3 0.395 0.3 10.2 122.0 0.22 7.9 212 2.1 11.7 16.4 355.9 4.6%
Feb 14, 2018 0.41 0.19 7.6 0.374 0.3 9.7 110.9 0.23 7.2 160 2.4 8.8 15.9 321.6 5.0%
Feb 13, 2018 0.40 0.20 7.3 0.383 0.2 9.9 113.6 0.18 7.4 162 0.5 8.9 10.2 332.8 3.1%
Feb 12, 2018 0.37 0.06 6.9 0.373 0.2 9.7 104.2 0.27 6.8 150 0.5 8.3 11.8 308.6 3.8%
Feb 11, 2018 0.41 0.09 7.5 0.405 0.3 10.5 110.5 0.26 7.2 155 0.5 8.6 13.0 325.7 4.0%
Feb 10, 2018 0.40 0.23 7.3 0.387 1.0 10.0 117.2 0.36 7.6 163 0.6 9.0 18.2 326.2 5.6%
Feb 9, 2018 0.36 0.14 6.6 0.353 0.4 9.1 112.0 0.21 7.3 150 0.7 8.3 13.6 303.2 4.5%
Feb 8, 2018 0.34 0.12 6.4 0.344 0.3 8.9 104.1 0.55 6.8 138 0.9 7.6 18.1 276.6 6.5%
Feb 7, 2018 0.37 0.19 6.8 0.367 0.7 9.5 105.1 0.57 6.8 142 0.8 7.9 17.3 285.4 6.1%
Feb 6, 2018 0.34 0.52 6.2 0.331 1.3 8.6 84.1 0.66 5.5 128 1.1 7.0 27.3 257.7 10.6%
Feb 5, 2018 0.38 0.34 7.1 0.385 0.7 10.0 107.6 0.31 7.0 149 0.8 8.2 17.6 304.8 5.8%
Feb 4, 2018 0.43 0.23 7.9 0.434 0.8 11.2 122.2 0.20 7.9 160 1.0 8.8 14.2 341.6 4.1%
Feb 3, 2018 0.41 0.28 7.5 0.401 1.4 10.4 121.0 0.26 7.9 131 0.7 7.2 15.6 326.6 4.8%
Feb 2, 2018 0.46 0.40 8.4 0.419 1.4 10.9 125.6 0.55 8.2 143 0.8 7.8 27.1 349.1 7.8%
Feb 1, 2018 0.54 0.17 10.0 0.516 0.6 13.4 146.0 0.36 9.5 164 0.5 9.0 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 news Date of event* Description Nature of impact Type of impact
1. Congress Sets Sights on Federal Cryptocurrency Rules [source: Reuters] February 19, 2018 n/a Both 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. Market Uncertain
2. Turkey, Iran to Release State-Backed Cryptocurrencies on Heels of Venezuela’s Petro [source: Cointelegraph] February 23, 2018 n/a The 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 Figures Figure** Description
Total cryptocurrency market capitalization, USD million Fig. 1.1 This 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. 1.1 This 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. 1.2 This 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. 1.2 This 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 assets Fig.1.3 This 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 million Fig. 1.3 This 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 capitalization Fig. 1.4, 1.5 This 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 terms Definition
Initial coin offering, ICO A 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 capitalization Value 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 capitalization Aggregate market value of cryptocurrencies circulating on the market.
Total cryptocurrency market capitalization Cryptocurrency and digital asset market capitalization, i.e. the aggregate market value of all cryptocurrencies and digital assets circulating on the market.
Token reward Token performance (current token price / token sale price during the ICO), i.e. the reward per $1 spent on buying tokens.
Dominance Market 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-mined A 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 assets Number 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 capitalization Average 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 sale Alternative 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 sale Similar 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 index The 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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