In this newsletter, we will go through the top weekly performances of the Token Metrics indices, the top TM grades, and how they performed over the past week. The second section of this newsletter will look into which coins are being picked most often for the upcoming week in the Token Metrics indices, and that week’s top-rated coins as well.
Market Review
Over the past week, the total crypto market dropped by over 10% to go back below the $2 Trillion level. The environment with interest rate hikes and strengthening US Dollar has once again proved to have a strong negative impact on the crypto market as a whole. In fact, over the past week, Bitcoin and Ethereum both dropped by over 10%, and from the top 10 crypto by market cap, Terra Luna had the worst weekly performance, a drop of 25%.
Figure 1: The Crypto Market Cap
Data as of 04/12/2022 – Past performance is not indicative of future performance
Market Indicator
At Token Metrics, we have built multiple market signals that help identify the prevailing trend and strength of momentum. Figure 2 below shows the TM grade market indicator applied on the total crypto market cap time-series.
We can see that the indicator flipped to a bullish regime on March 22nd, where the total crypto market cap was at the $2 Trillion level. This was the first bullish signal since the bearish signal of mid-November at the $2.75 Trillion level. After that bullish signal, the total crypto market cap went up by 15% to reach the $2.3 and then reversed the trend. The indicator quickly adjusted to the reversal and a bearish signal came in on April 9th at the $2.08 Trillion level.
Figure 2: TM Grade Market Indicator
Data as of 04/12/2022 – Past performance is not indicative of future performance
TM Performance
Token Metrics indices are very helpful in providing insights and research recommendations to our customers. During the market correction of the past week, the Token Metrics indices suffered losses, with some exceeding a 10% weekly drop. Since the indices are long-only, the only hedge possible would be a move into stablecoins, gold-backed tokens like PAX Gold, and mirrored equity assets. Since these assets are not tradable on many crypto exchanges, they tend to pop-up in the All-Exchange TM index first. In fact, over the past week, the All-Exchange daily high-cap index was mainly in stables and gold as shown in figure 3 below. We can see that the losses of that index were pretty small relative to the market.
Figure 3: All-Exchange Daily High-Cap Index
Data as of 04/12/2022 – Past performance is not indicative of future performance
TM Grade Analysis
To see how the TM grade has been able to flag tokens that performed very well over the past week, figure 4 below shows the time-series of DEGO Finance’s price compared to its TM grade, as well as OEC Token. From the plots, we can see that although there have been wide moves due to the recent volatility of the market, the TM grade captured the moves of these coins well.
Figure 4: TM grade vs Price
Data as of 04/12/2022 – Past performance is not indicative of future performance
As shown, the TM grade is a great tool to identify coins that have strong bullish momentum, especially coins that can go under the radar. In fact, as shown in Figure 5 below, the TM grade was able to flag a few tokens that performed well in terms of weekly returns.
Figure 5: Top Performers by TM Grade
| Coin | TM Grade | Date of Grade | ROI |
| Empire Token | 86 | 04/05 | + 75% |
| Ref Finance | 86 | 04/05 | + 17% |
| SWFTCOIN | 87 | 04/05 | + 15% |
| OEC Token | 89 | 04/05 | + 10% |
| Shiden Network | 86 | 04/05 | + 5% |
Data as of 04/12/2022 – Past performance is not indicative of future performance
Looking ahead
Looking at the current indices allocation, we can also see that the most popular coins recommended by the AI this week are Ethereum, Solana, Dogecoin, Dego Finance, Magic Internet Money, and Kyber Network Crystal.
To learn more about everything crypto, visit our Learn Section.
