HodlX Guest Post Submit Your Post
Despite some stabilization over the past 24 hours, crypto markets are down meaningfully over the past week. This has come in the context of weak tech stocks and nervousness over Fed hikes. But there has been some divergence across crypto markets.
Bitcoin has been one of the more resilient coins and is down ‘only’ 14% at $36,000 (charts one and two). Ethereum has underperformed Bitcoin but other crypto markets have performed even worse. Our DeFi and smart contract indexes are down 28% each, while the metaverse index is down a whopping 33% on the week.
In terms of the breakdown within each index,
- Smart contract platform index Cardano (ADA) has dropped the most at 35.1% followed by Solana (SOL) at 34.4%. Ethereum is down 24.5%. All coins are down on the week.
- DeFi index Uniswap (UNI) fell the most at 36.1% followed by Aave (AAVE) at 33.4%. All coins are also down on the week.
- Metaverse index Gala (GALA) is currently down the most at a staggering 40% followed by The Sandbox (SAND) at 35.4%. Large declines across the board.
- Bitcoin index This is down the least at 14.1% on the week.
What are in the four indices?
Here are the indices in more detail.
- Bitcoin crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market. he OG of
- Smart contract platforms Bitcoin, the big innovation was to have blockchains that were more programmable. These could host smart contracts or decentralized applications and have allowed the emergence of the metaverse and DeFi. Ethereum (ETH) is the most popular version of a smart contract platform. But we also include rivals Solana (SOL), Cardano (ADA) and Avalanche (AVAX). We also include Polkadot (DOT), which allows interoperability between blockchains and the use of smart contracts via parachains. fter
- Metaverse Axie Infinity (AXS), which is a play-to-earn gaming platform. Another is Decentraland (MANA), which is a virtual world that allows ownership of land among other things. The three other coins we include are The Sandbox (SAND), Enjin Coin (CNJ) and Gala (GALA). oins associated with the creation of a virtual space/digital world on the internet using a combination of augmented reality, virtual reality and social networks. One of the largest is this space is
- Decentralized Finance (DeFi) Maker (MKR), Compound (COMP), Uniswap (UNI) and PancakeSwap (CAKE). inancial services built on top of blockchain networks with no central intermediaries. This can be a very broad category, so we narrow this down to platforms that focus on lending and borrowing or to yield farming. The five coins we have selected are Aave (AAVE),
The commentary contained in the above article does not constitute an offer or a solicitation or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.
Bilal Hafeez is the CEO and editor of Macro Hive. He spent over twenty years doing research at big banks – JPMorgan, Deutsche Bank and Nomura where he had various ‘global head’ roles and did FX, rates and cross-markets research.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Dario Lo Presti/klyaksun