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 bounced back towards the $1.95 trillion level, with Bitcoin trading slightly below $42K and Ethereum trading slightly above $2,800 at the time of writing. For the second week in a row, LUNA had the best weekly performance out of the top 100 coins by market cap, with a weekly return exceeding 70%. Other coins that had a great week are Anchor Protocol (+63%), Waves (+40%) and JUNO (+32%).
Figure 1: The Crypto Market Cap
Data as of 02/28/2022 – 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. 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 in Figure 2 that although the market had a bounce back this past week, the TM Market Indicator is still in a bearish regime, which signals some caution regarding the current up move. In fact, this indicator has identified the bearish downtrend since the total crypto market cap was around $2.75 trillion.
Figure 2: TM Market Indicator
Data as of 02/28/2022 – Past performance is not indicative of future performance
TM Performance
Given that the market regime is still identified as being in a bearish downtrend, using tools like the Token Metrics indices is essential. In fact, during the sell-off in mid-February, the Token Metrics indices were heavily invested in gold-backed tokens and stablecoins. But during the past week, the Token Metrics indices had allocations to coins with good TM grades that had very strong weekly performances. Shown in Figure 3 below is the top 5 performing Daily Indices on Token Metrics during the past 7 days. In addition, Figure 4 goes deeper into the best performing index over the past week, the Binance Daily High-Cap, by looking at its performance day-to-day as well as its current allocation.
Figure 3: TM Daily High-Cap Indices Performance
| Exchange | Time-Horizon | High-Cap | 7-day Return |
| Binance | Daily | Yes | + 42% |
| Kraken | Daily | Yes | + 28% |
| KuCoin | Daily | Yes | + 26% |
| Gate.io | Daily | Yes | + 23% |
| Coinbase | Daily | Yes | + 22% |
Data as of 02/28/2022 – Past performance is not indicative of future performance
Figure 4: Binance Daily High-Cap
Data as of 02/28/2022 – Past performance is not indicative of future performance
TM Grade Analysis
Terra LUNA, Anchor Protocol, Acet, and API3 have been showing up in the TM indices over the past week due to a good TM grade. As shown in Figure 5 below, we can see how the TM grade evolved over time compared to the price of these tokens, and when the coins were first allocated into a Token Metrics Index.
Figure 5: TM Grade vs Price
Terra
Acet
API3
Anchor Protocol
Data as of 02/28/2022 – 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 6 below, the TM grade was able to flag a few tokens that performed well in terms of weekly returns
Figure 6: Top Performers by TM Grade
| Coin | TM Grade | Date of Grade | ROI |
| Acet | 85 | 02/21 | + 53% |
| Anchor Protocol | 84 | 02/21 | + 59% |
| Beethoven X | 83 | 02/21 | + 37% |
| Nest Protocol | 80 | 02/21 | + 16% |
| API3 | 82 | 02/21 | + 8% |
Data as of 02/28/2022 – 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 LUNA and API3. Other popular coins in the TM indices currently are Bitcoin, Acet, Keep Network, and PAX Gold.
