Crypto Index Tracker – Metaverse Fares Worst in Crypto Sell-Off

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Crypto markets have been relatively more stable as of late, with Bitcoin down only one percent over the past week. Certainly, Monday’s announcement of Elon Musk’s $44 billion buyout of Twitter helped crypto.

But now it’s the turn of the heavyweight US tech companies (Google, Microsoft, Amazon, Apple, Facebook) to potentially influence crypto. They report earnings this week, and with crypto correlation high against NASDAQ, any surprises will set the tone for crypto in the coming weeks.

As for the performance of our various indexes, they are all in the red (see charts one and two). Our metaverse index is down the most at six percent, followed by our privacy index at five percent. Our smart contract, DeFi and Bitcoin indexes are all down between one percent and two percent.

• Smart contract platform index – Terra (LUNA) is the only one to have made gains – it is up seven percent. Avalanche (AVAX) is down the most at six percent. Ethereum (ETH) is down two percent.
• DeFi index – Terra (LUNA) is up the most at seven percent, and Uniswap (UNI) is down the most at seven percent.
• Metaverse index – All constituents are in the red. Phantasma (SOUL) is down the most at 13%, and The Sandbox (SAND) is down the least at one percent.
• Privacy index – Zcash (ZEC) is up the most at six percent, and Dusk Network (DUSK) is down the most at nine percent.
• Bitcoin index – This is down one percent.

What are in the five indices?

Here are the indices in more detail.

• Bitcoin – The OG of crypto markets deserves its own category and is in many ways the true benchmark for any other crypto market.
• Smart contract platforms – After 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. As well as Ethereum, we also include some key competitors. The constituents of this index are Ethereum (ETH), Cardano (ADA), Avalanche (AVAX), Solana (SOL), Fantom (FTM), VeChain (VET), Terra (LUNA), EOS (EOS) and Chainlink (LINK). We also include Polkadot (DOT), which allows interoperability between blockchains and the use of smart contracts via parachains.
• Metaverse – Coins associated with the creation of a virtual space/digital world on the internet using a combination of augmented reality, virtual reality and social networks. The constituents of this index are Axie Infinity (AXS), The Sandbox (SAND), Decentraland (MANA), Enjin Coin (ENJ), Aavegotchi (GHST), Terra Virtua Kolect (TVK), Ultra (UOS), Phantasma (SOUL), RedFOX Labs (RFOX) and Gala (GALA).
• Decentralized Finance (DeFi) – Financial services built on top of blockchain networks with no central intermediaries. This can be a broad category, so we narrow this down to platforms that focus on lending/borrowing, yield farming, automated market making and decentralized exchange tokens. The constituents of this index are Aave (AAVE), Compound (COMP), Uniswap (UNI), Yearn.finance (YFI), Loopring (LRC), PancakeSwap (CAKE), Maker (MKR), 1inch (1INCH), Thorchain (RUNE) and Terra (LUNA).
• Privacy coins – Coins that obscure transactions on the blockchain to maintain the anonymity of its users and their activity. The constituents of this index are Monero (XMR), Zcash (SEC), Dash (DASH), Verge (XVG), Horizen (ZEN), Beam (BEAM), Secret (SCRT), Decred (DCR), Keep Network (KEEP) and Dusk Network (DUSK).

Disclaimer

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.

Featured Image: Shutterstock/Tithi Luadthong