Coinspeaker and ICOBox are offering weekly analysis of cryptocurrency and digital assets markets over March 19-25, 2018, conducted by Professor Dima Kornilov and Dima Zaitsev.

Information as of March 26, 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 have taken place in March 2018, including over the last week (March 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 February 1, 2017, to March 25, 2018*

Parameter1-Feb-181-Mar-18MoM, %4-Mar-18DoD, %11-Mar-18DoD, %18-Mar-18DoD, %25-Mar-18DoD, %
1Total market capitalization, USD billion517.2440.0-14.9% 463.35.3%361.7-21.9% 307.7-14.9% 329.97.2%
2Altcoin market capitalization, USD billion344.8264.6-23.3%269.01.7%212.0-21.2%174.3-17.8%184.05.6%
Altcoin dominance, %66.7%60.1%58.1%58.6%56.6%55.8%
3Bitcoin price, $10 237.310 385.01.4%11 497.410.7%8 852.8-23.0% 7 890.5-10.9% 8 612.89.2%
Bitcoin market capitalization, USD billion172.4175.41.8%194.310.8%149.7-22.9%133.5-10.8%145.99.2%
Bitcoin dominance, %33.3%39.9%41.9%41.4%43.4%44.2%
4Ethereum price, $1 119.4856.0-23.5% 856.20.0%685.3-20.0% 551.6-19.5% 522.7-5.2%
Ethereum market capitalization, USD billion10983.8-23.1%83.90.1%67.2-19.8%54.2-19.4%51.4-5.1%
Ethereum dominance, %21.1%19.0%18.1%18.6%17.6%15.6%
5Bitcoin Cash price, $1 491.11 204.8-19.2% 1 267.95.2%1 002.6-20.9% 948.3-5.4% 973.62.7%
Bitcoin Cash market capitalization, USD billion25.320.5-19.0%21.65.3%17.1-20.9%16.1-5.3%16.62.7%
Bitcoin Cash dominance, %4.9%4.7%4.7%4.7%5.2%5.0%
6Litecoin price, $163.7203.124.1%210.23.5%177.5-15.6% 152.5-14.1% 158.94.1%
Litecoin market capitalization, USD billion911.325.0%11.73.6%9.9-15.4%8.5-13.9%8.94.3%
Litecoin dominance, %1.7%2.6%2.5%2.7%2.8%2.7%
7Volume (24h) 4 crypto, USD billion17.310.1-41.4%8.9-11.8%8.8-1.1%10.720.8%6.2-42.1%
Market cap 4 crypto, USD billion351.6315.1-10.4%335.16.4%265.1-20.9%228.7-13.7%238.94.4%
ZAK-4 Crypto index4.9%3.2%2.7%3.3%4.7%2.6%
4 crypto dominance, %68%71.6%72.3%73.3%74.3%72.4%
8Volume (24h) 8 crypto, USD billion1911.3-40.3%9.9-12.7%9.8-0.7%11.820.2%6.8-42.5%
Market cap 8 crypto, USD billion393.4349.3-11.2%368.95.6%291.4-21.0%249.0-14.6%261.95.2%
ZAK-8 Crypto index4.8%3.2%2.7%3.4%4.7%2.6%
8 crypto dominance, %76.1%79.4%79.6%80.6%80.9%79.4%

* Data as of March 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 (March 25, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and EOS are used to calculate the ZAK-8 index.
Data source: coinmarketcap.com, smithandcrown.com

Over the past week cryptocurrency market capitalization increased, and equaled $329.9 billion as of 03:00 UTC on March 25 (see Table 1.1, fig. 1).

The dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on March 25, 2018, equaled 72.4% and 79.4%, respectively, with bitcoin dominance increasing to 44.2% (see Table 1.1), i.e. one can conclude that altcoins have depreciated more significantly since the beginning of March than the leader of the cryptocurrency market.

Early in the week the news broke that Snap Inc. had banned advertising of initial coin offerings (ICO) on the mobile messenger Snapchat. Information also surfaced that Twitter also intends to ban all advertising related to the crypto industry, following in the footsteps of Facebook (including the Audience Network and Instagram platforms) and Google.

Despite this fact, a growth in capitalization from $275 billion to $356.2 billion, i.e. by more than $80 billion, was seen from March 18-21 (see fig. 1). This was due to the favorable impact of the discussion of regulation of the crypto industry at the G20 summit, which was held on March 19-20. In particular, at a meeting of the finance ministers and directors of the central banks of the G20 member states the head of the Financial Stability Board (FSB) Mark Carney stated that cryptocurrencies do not pose risks to global financial stability.

By the end of the week, however, a small downward adjustment to the level of $325-340 billion had already taken place (fig. 1) under the influence of certain negative news items (see Table 1.4), with trading volumes also falling (Table 1.5).

Figure 1. Cryptocurrency market capitalization since March 18, 2018

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

Data source: coinmarketcap.com

Overall, during the period from March 19-25, 2018, the price of 411 of the top 500 cryptocurrencies and digital assets appreciated, resulting in a growth in cryptocurrency market capitalization by more than $30 billion.

Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion increased from 18 to 24, with the price of all of them rising except VeChain (-4.59%) and Lisk (-0.43%).

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 (March 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 top 10 cryptocurrencies that demonstrated the most significant change in price over the past week (fig. 2-3). In this regard, only those coins and tokens included in the top 100 and top 200 in terms of market capitalization (according to the data of coinmarketcap.com) were considered.

Figure 2. Largest growth in prices over the past week

weekly-cryptocurrency-analysis-march-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 might have influenced the fluctuation in prices for certain cryptocurrencies. Table 1.4 shows the possible factors or events that might have influenced the cryptocurrency market in general.

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

Coins and tokensSymbolPrice growth over the week, %Average price in $ on Mar 25, 2018Market capitalization, USD billionFactors or events that might have led to a growth in cryptocurrency prices over the past week
1StormSTORM204.11%$0.0537720.22The Storm token sale, which collected $32 million, ended in December 2017. Now Storm’s market cap already exceeds $180 million. Blockchain makes effective interaction between Storm Players and Storm Makers possible. The price of the Storm token increased by more than 200% over this week, including on the back of the news on its listing on the large exchange UpBit on March 23
[Twitter].

Veritaseum ranked second in terms of the rate of price growth this week, appreciating by more than 100%. A possible reason for the growth in the price of Veritaseum might be the rumors on the conclusion of an agreement between prominent businessman Keven O’Leary and the creator of Veritaseum [Twitter]

One reason for the 89% growth in the price of ICON was also news on the listing of the tokens on the large exchange UpBit on March 22 [Twitter].

The Loopring price was positively impacted this week by the issue of its white paper in various languages, which might have interested new potential buyers [Twitter]

The price of the Tron cryptocurrency also showed healthy growth this week thanks to start of the countdown to the release date of its main product testnet, which triggered growth in demand for the cryptocurrency [Twitter]

The price of the Metal token increased due to favorable news on the upcoming launch of MetalPlay on March 24 [Twitter]

The IOS Token price increased by 62%, mainly due to a television interview with the director of the project on the major Asian television station Asia Economy TV.

The Enigma project was able to spark additional interest this week due to the issue of its updated roadmap.

The main news for Binance this week was the move of its office to Malta and its negotiations with the Japanese regulator (FSA), and QASH announced the forthcoming introduction of the beta version of its WorldBook project.

2VeritaseumVERI105.78%$206.140.42
3ICONICX89.69%$3.511.36
4LoopringLRC78.88%$0.4853650.28
5TRONTRX78.86%$0.0475073.12
6MetalMTL66.52%$5.340.12
7IOStokenIOST62.87%$0.0256460.22
8EnigmaENG62.11% $1.990.15
9Binance CoinBNB57.77%$13.441.33
10QASHQASH53.72%$0.7270590.25

 

A depreciation in price was seen for 89 coins and tokens of the top 500 cryptocurrencies and digital assets by capitalization over the past week. The ten cryptocurrencies from the top 200 that showed the most noticeable drops in price are shown in fig. 3.

Figure 3. Largest fall in prices over the past week

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

 

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

Coins and tokensSymbolFall in price over the week, %Average price in $ on Mar 25, 2018Market capitalization, USD billionFactors or events that might have led to a fall in cryptocurrency prices over the past week
1SmartCashSMART-23.22%$0.1165540.10SmartCash is a decentralized economic system managed by the community for mutually beneficial cooperation and growth. The price of SmartCash has been showing a strong negative trend since the start of March, which continued this week.

The prices of the other tokens and cryptocurrencies from this list also dropped this week, but the range of the fluctuations was small, which allows us to put these price fluctuations down to volatility.

SaluS is an experimental cryptocurrency with an open-source code. As the developers themselves say, when creating SaluS they were guided by the principle of increasing the net value of assets as much as possible.

The cryptocurrency SIRIN LABS Token (SRN) is a digital token of the company SIRIN LABS, which creates products to make the use of blockchain more convenient. In December 2017, SIRIN LABS collected $158 million via its ICO, but right now it has a market cap of around $70 million.

The Bitcore project is an improved and cheaper version of bitcoin, which allows you to receive 3% in the form of airdrop when registering a BTX purse. Basically, its tokens serve as a means of payment with a fairly low commission.

VeChain is a global data conversion platform that digitalizes real people, products or events by linking the API with the applications layer of the system, which connects the blockchain with real information.

Dentacoin (DCN) is a digital token based on the Ethereum blockchain intended for use in the dental industry.

Nexus (NXS) is a decentralized cryptocurrency that makes quick payments possible.

Particl is a digital currency with an improved Shadow Cash function based on the Bitcoin blockchain.

Electroneum (ETN) is an anonymous cryptocurrency working on its own blockchain, formed on the basis of the Bytecoin blockchain.

Gnosis (GNO) is a decentralized prognosis platform based on the Ethereum blockchain.

2SaluSSLS-15.85%$54.320.05
3SIRIN LABS TokenSRN-10.51%$0.3795600.09
4BitcoreBTX-9.04%$7.220.09
5VeChainVEN-4.59%$3.281.70
6DentacoinDCN-3.67%$0.0003830.12
7NexusNXS-3.45%$1.740.10
8ParticlPART-3.21%$12.900.11
9ElectroneumETN-2.26%$0.0285850.19
10GnosisGNO-1.75%$76.860.08

 

Table 1.4 shows events that took place from March 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, March 19-25, 2018

Factors and events

(link to source)

Date of newsDescriptionNature of impactType of impact
1.                 ‘Cryptocurrencies Don’t Pose Risks to Financial Stability,’ Says G20 Watchdog Mark Carney [source: Coinspeaker]March 19, 2018On the eve of the G20 summit in Buenos Aires, the head of an international group of central bank regulators that coordinates the financial regulation of the G20 announced that cryptocurrencies do not pose risks to global financial stability.Market ⇑Favorable
2.                 FCA to Launch a Global Fintech Sandbox [source: Trustnodes]March 19, 2018The British Government supports the development of the innovative sector and creates numerous initiatives that simplify the work of many startups, including blockchain startups.Market ⇑

 

Favorable
3.                 Following Facebook and Google, Twitter Plans to Ban Crypto-Related Ads in 2 Weeks [source: CoinspeakerMarch 19, 2018Following Facebook and Google, Twitter has also decided to ban all advertising related to the crypto industry.Market ⇓Unfavorable
4.                 Controversial Tether Issues $300 Million In New Tokens, Critics React [source: Cointelegraph]March 21, 2018The Tether project, which has garnered a lot of interest lately from regulatory bodies, has issued another $300 million tokens, which could have an adverse effect on the entire project and the related cryptoexchange Bitfinex.MarketUncertain
5.                 Bitcoin Price Falls Back Below $9,000 after Japan’s FSA Issued a Warning to Binance [source: Coinspeaker]March 23, 2018The Binance cryptoexchange received a warning from the Japanese Regulator in connection with the recent expansion of its operations in Japan.Market ⇓Unfavorable

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. In March the 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) equaled from $7.7 billion to $12.4 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto fluctuated from 2.7% to 4.7% of capitalization. The highest trading volume (up to 4.7%) was seen on March 18 on the eve of the G20 summit.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from March 1, 2018, to March 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%
Mar 25, 20188 613 4.6 145.9 523 1.2 51.4 974 0.2 16.6 0.640.2 25.0 6.2 238.9 2.6%
Mar 24, 20188 902 5.7 150.8 543 1.3 53.4 1 028 0.3 17.5 0.650.4 25.3 7.6 246.9 3.1%
Mar 23, 20188 736 6.0 147.9 540 1.6 53.1 1 012 0.3 17.2 0.660.4 25.9 8.2 244.2 3.4%
Mar 22, 20188 939 5.5 151.4 562 1.5 55.3 1 033 0.3 17.6 0.690.4 27.1 7.8 251.3 3.1%
Mar 21, 20188 937 6.0 151.3 559 1.8 55.0 1 066 0.4 18.2 0.710.5 27.9 8.7 252.3 3.5%
Mar 20, 20188 620 6.4 145.9 557 1.8 54.7 998 0.5 17.0 0.740.8 28.8 9.5 246.4 3.9%
Mar 19, 20188 344 6.7 141.2 547 2.0 53.7 943 0.4 16.0 0.671.1 26.3 10.3 237.3 4.3%
Mar 18, 20187 891 6.6 133.5 552 2.7 54.2 948 0.4 16.1 0.630.9 24.8 10.7 228.7 4.7%
Mar 17, 20188 322 4.4 140.8 602 1.3 59.1 975 0.4 16.6 0.690.3 26.9 6.4 243.4 2.6%
Mar 16, 20188 323 5.3 140.8 612 1.4 60.1 944 0.5 16.1 0.700.5 27.3 7.7 244.3 3.1%
Mar 15, 20188 291 6.8 140.3 615 1.8 60.4 950 0.4 16.2 0.700.9 27.5 9.9 244.3 4.0%
Mar 14, 20189 215 6.4 155.9 691 1.8 67.9 1 072 0.4 18.2 0.790.5 30.9 9.1 272.8 3.3%
Mar 13, 20189 173 6.0 155.2 698 1.4 68.5 1 051 0.5 17.9 0.800.3 31.2 8.2 272.8 3.0%
Mar 12, 20189 603 6.5 162.4 724 1.8 71.1 1 144 0.4 19.5 0.830.4 32.5 9.0 285.5 3.2%
Mar 11, 20188 853 6.3 149.7 685 1.6 67.2 1 003 0.5 17.1 0.800.5 31.1 8.8 265.1 3.3%
Mar 10, 20189 351 5.4 158.1 730 1.5 71.6 1 071 0.4 18.2 0.850.4 33.4 7.7 281.4 2.7%
Mar 9, 20189 415 8.7 159.2 702 2.2 68.9 1 035 0.5 17.6 0.831.0 32.3 12.4 277.9 4.5%
Mar 8, 20189 951 7.2 168.2 753 1.9 73.8 1 095 0.4 18.6 0.870.5 34.1 10.0 294.8 3.4%
Mar 7, 201810 804 8.8 182.6 816 2.2 80.0 1 206 0.5 20.5 0.920.8 36.1 12.2 319.3 3.8%
Mar 6, 201811 500 6.8 194.4 854 1.9 83.7 1 264 0.4 21.5 0.950.9 37.3 10.1 336.9 3.0%
Mar 5, 201811 532 6.5 194.9 867 1.9 84.9 1 287 0.4 21.9 1.011.7 39.7 10.4 341.4 3.1%
Mar 4, 201811 497 6.1 194.3 856 1.7 83.9 1 268 0.4 21.6 0.910.8 35.4 8.9 335.1 2.7%
Mar 3, 201811 102 6.7 187.6 857 1.7 83.9 1 275 0.4 21.7 0.910.3 35.5 9.0 328.7 2.8%
Mar 2, 201810 977 7.6 185.5 872 1.9 85.4 1 285 0.4 21.8 0.930.3 36.2 10.2 328.9 3.1%
Mar 1, 201810 385 7.3 175.4 856 1.9 83.8 1 205 0.5 20.5 0.900.5 35.3 10.1 315.1 3.2%

* Data as of March 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, EOS, and Cardano) equaled $6.8 billion by the end of last week (Table 1.5.b), i.e. 2.6% of their market capitalization, which attests to a fall in activity on cryptoexchanges. 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)EOS (EOS)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%
Mar 25, 20180.230.03 4.3 0.1880.064.9 6.60.274.9 1590.248.9 6.8 261.9 2.6%
Mar 24, 20180.240.04 4.4 0.1890.134.9 7.00.365.2 1690.299.4 8.4 270.8 3.1%
Mar 23, 20180.240.05 4.5 0.2020.155.2 7.00.855.2 1640.359.1 9.6 268.3 3.6%
Mar 22, 20180.260.05 4.7 0.2150.205.6 7.01.065.2 1690.409.4 9.6 276.3 3.5%
Mar 21, 20180.270.09 5.0 0.2050.265.3 6.10.774.5 1700.469.4 10.3 276.6 3.7%
Mar 20, 20180.250.09 4.6 0.1930.255.0 6.20.674.6 1620.499.0 11.0 269.6 4.1%
Mar 19, 20180.220.09 4.1 0.1610.324.2 4.70.663.5 1550.508.7 11.9 257.7 4.6%
Mar 18, 20180.210.09 3.8 0.1540.194.0 4.70.333.4 1530.608.5 11.9 248.4 4.8%
Mar 17, 20180.230.03 4.3 0.1790.084.6 5.10.143.7 1650.409.2 7.1 265.2 2.7%
Mar 16, 20180.240.02 4.5 0.1870.104.8 5.20.183.8 1650.449.2 8.4 266.6 3.2%
Mar 15, 20180.250.05 4.6 0.1990.205.2 5.40.293.9 1610.569.0 11.0 266.9 4.1%
Mar 14, 20180.290.05 5.4 0.2230.145.8 5.90.214.3 1760.489.8 10.0 298.1 3.4%
Mar 13, 20180.290.02 5.4 0.2230.105.8 5.80.204.2 1780.479.9 8.9 298.0 3.0%
Mar 12, 20180.300.03 5.6 0.2240.185.8 6.20.214.4 1890.5710.5 10.0 311.9 3.2%
Mar 11, 20180.290.03 5.4 0.2100.165.4 5.80.274.2 1780.679.9 10.0 290.0 3.4%
Mar 10, 20180.320.02 5.8 0.2250.135.8 6.20.314.4 1880.6310.5 8.8 307.9 2.9%
Mar 9, 20180.310.06 5.8 0.2210.255.7 6.20.434.4 1760.949.8 14.1 303.7 4.6%
Mar 8, 20180.330.05 6.1 0.2480.176.4 6.50.304.7 1860.6110.3 11.2 322.2 3.5%
Mar 7, 20180.340.06 6.2 0.2850.197.4 7.30.425.2 1970.7610.9 13.7 349.0 3.9%
Mar 6, 20180.350.04 6.5 0.2960.117.7 8.00.235.7 2110.6611.7 11.1 368.4 3.0%
Mar 5, 20180.360.10 6.7 0.3000.207.8 8.20.185.8 2140.5911.9 11.5 373.5 3.1%
Mar 4, 20180.350.10 6.5 0.2960.097.7 8.00.205.6 2100.5711.7 9.9 366.7 2.7%
Mar 3, 20180.320.05 5.9 0.2930.127.6 8.10.145.7 2140.6811.9 10.0 359.7 2.8%
Mar 2, 20180.340.04 6.3 0.3040.117.9 8.70.216.1 2100.6311.6 11.2 360.7 3.1%
Mar 1, 20180.330.05 6.2 0.3120.188.1 8.40.215.9 2030.6811.3 11.3 346.4 3.3%

 

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 newsDescriptionNature of impactType of impact
1.When Is a Bitcoin Not a Bitcoin? When It’s an Asset, Says G-20 [source: Bloomberg]March 20, 2018Bloomberg published a draft document stating that the G20 considers cryptocurrencies assets, and not currencies.MarketUncertain, most likely favorable
2.Yahoo Japan to Open Cryptocurrency Exchange [source: Asia.nikkei]March 23, 2018The Japanese branch of Yahoo plans to create its own cryptoexchange, which could have an effect on the overall confidence and appeal of the cryptocurrency market.Market ⇑Favorable
3.The Ministry of Industry and Information Technology of China Plans to Create a Special Committee for Blockchain Initiatives [source: Miit.gov.cn]March 24, 2018The positive attitude of the Chinese Government toward blockchain technology shows that cryptocurrencies and ICOs may once again be allowed.Market ⇑Favorable

 

    1.2 Market trends

The weekly cryptocurrency and digital asset market trends from October 1, 2017, to March 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 March 25, 2018, this number had already reached 1,551.
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 March 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 values may be significant during periods of high cryptocurrency market volatility.
Data source: coinmarketcap.com

Figure 1.1. Total cryptocurrency market capitalization*

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

* Average daily data (according to the data of coinmarketcap.com).

Figure 1.1 shows a graph of the weekly cryptocurrency market change from October 1, 2017, to March 25, 2018. Over this period, market capitalization increased from $146.9 billion to $328.8 billion, a growth of 1,757% compared to the start of 2017. Therefore, everyone who entered the cryptocurrency market in early 2017 was able to receive high returns due to market growth. However, the fall over the period from January 7, 2018, equaled $500 billion. Last week (March 19-25, 2018) cryptocurrency market capitalization increased from $296 billion to $328.8 billion (as of March 25, 2018, based on the average figures from coinmarketcap.com).

 Figure 1.2. Change in market capitalization

weekly-cryptocurrency-analysis-march-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%.

Already, eight of the first twelve weeks in the first quarter of 2018 have been “in the red”, i.e. capitalization fell based on the results of each of these weeks. Last week the market grew by $32.8 billion, or 11% (with due account of average daily data, see fig. 1.2).

Figure 1.3. Number of cryptocurrencies and digital assets

weekly-cryptocurrency-analysis-march-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 1,551. Their number increased by 25 from 1,526 to 1,551 over the last week, and average capitalization equaled $212 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

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

A positive trend for the cryptocurrency market as a whole could be seen last week, as well as a partial change in the synchronicity of the rise and fall of the prices of a number of coins and tokens.

Banks are paying ever closer attention to blockchain technology, and even considering the possibility of purchasing cryptoexchanges. For example, Barclays Bank purchased the Coinbase cryptoexchange, and Circle purchased the Poloniex cryptoexchange (Goldman Sachs Bank is an investor in Circle). On the one hand, the perception of the cryptocurrency market as a competitor to the banking industry is gradually being replaced with the recognition of the possibilities for partnership, the development of new innovative technologies and new types of services. On the other hand, the influence of the banks might lead to a reduction in the decentralization of currency flows.

At the G20 summit in Buenos Aires, the head of the Financial Stability Board (FSB) announced that cryptocurrencies do not pose risks to global financial stability. This positive attitude could lead to another cycle of influx of financial assets to the crypto industry from institutional players, and therefore to a growth in capitalization over the medium term.

Annex – Glossary

Key termsDefinition
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 capitalizationThe market value of an individual coin or token circulating on the market.
Total cryptocurrency market capitalizationThe market capitalization of cryptocurrencies and digital assets, i.e. the aggregate market value of cryptocurrencies and digital assets (coins and tokens) circulating on the market.
DominanceMarket share, i.e. the ratio of market capitalization of a particular cryptocurrency (coin, token) to total cryptocurrency market capitalization. Expressed as a %.
Not Mineable

 

A coin that is not mineable. The term is used for cryptocurrencies (coins, tokens) which cannot be mined or issued through mining.
Pre-minedA pre-mined coin. The term is used for cryptocurrencies (coins, 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 % to the beginning of the year)The rate of 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)The 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)The 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 beginning of 2018 over 1,300 cryptocurrencies and digital assets (coins and tokens) 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.
ZAK-n Crypto indexThe index is calculated as a percentage and represents a ratio between the 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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