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 cap dropped back below the $2 Trillion level, with ETH back below $3,000 and BTC slightly above $42,000. Out of the top 10 coins by market cap excluding stablecoins, only BTC (+1%), XRP (+17%) and AVAX (+4%) had positive weekly returns, whereas coins like ADA (-8%), DOT (-14%) and SOL (-15%) had the biggest weekly losses. For coins outside the top 100, the biggest weekly gainers were Pirate Chain (+80%), FEG Token (+62%) and Anchor Protocol (+40%), whereas LooksRare had a big selloff exceeding 40%.

Figure 1: The Crypto Market Cap

Data as of 02/14/2021 – 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. In Figure 2 below, we show our TM grade indicator applied on the total crypto market cap, which is built by looking at the proportion of coins that have a low TM grade compared to coins with high TM grades. When the majority have a low TM grade, it signals that the market is likely to be in a bearish regime.

We can see from figure 2 that the TM market indicator is still bearish on the total market since the

$2.75 trillion level, as we still have more coins with low TM grades in the top 100 coins by market cap. In fact, 86 out of the top 100 coins by market cap have a bearish grade below 40.

Figure 2: TM Market Indicator

Data as of 02/14/2021 – Past performance is not indicative of future performance

TM Performance

The start of February had good upward moves across the market, with some coins having gains exceeding 30%. However, this up-move halted over the past week, which enforces the notion that we could have possibly been in a bear market rally and are now continuing the longer-term down trend. These types of rallies are hard to trade and navigate, which is why the Visual Trends Indicator is helpful.

The low-frequency trend indicator evaluates the long-term trend of a specific coin, compared to the high-frequency trend indicator that evaluates the short-term trend. The low-frequency

indicator provides less signals and is thus more accurate than the high-frequency indicator, but as a trade-off the signals slightly lag the trend. Shown in Figure 3 below is the performance of the most recent signal using the low-frequency trend indicator on the top 10 coins by market cap.

Figure 3: Low-Frequency Trends Indicator

Data as of 02/14/2021 – Past performance is not indicative of future performance

Figure 4: Top Performers by TM Grade

Data as of 02/14/2021 – Past performance is not indicative of future performance

Looking ahead

Looking at the current indices allocation, we can also see that the most popular coin recommended by the AI this week is Bitcoin. Other popular coins in the TM indices currently are Shiba Inu, Pax Gold, cUSDT and Elrond.