Crypto Index Tracker: Crypto Markets Plunge
- By Bilal Hafeez and Dalvir Mandara
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- 3 min read
Crypto markets have been volatile in the run-up to Wednesday’s Fed meeting where a 50bps hike is expected. The bitcoin correlation to tech remains near all-time highs, and its outlook in the near term will likely follow that of the NASDAQ. As for the performance of our various indexes, they are all in the red again (Charts 1 and 2). Our Metaverse Index is down the most at 22%. Our Smart Contract, DeFi, and Privacy indexes are all down between 15% and 18%. Bitcoin is down the least at 5%.
- Smart Contract Platform Index: Ethereum (ETH) is down the least at 5% and Fantom (FTM) is down the most at 28%.
- DeFi Index: Yearn.finance (YFI) is down the least at 8% and Thorchain (RUNE) is down the most at 25%.
- Metaverse Index: Aavegotchi (GHST) is down the least at 2% and Phantasma (SOUL) is down the most at 31%.
- Privacy Index: Decred (DCR) is down the least at 10% and Dusk Network (DUSK) is down the most at 26%.
- Bitcoin: this is down 5%.
What Are in the Four 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 decentralised 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).
- Decentralised 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 decentralised 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 (ZEC), Dash (DASH), Verge (XVG), Horizen (ZEN), Beam (BEAM), Secret (SCRT), Decred (DCR), Keep Network (KEEP), and Dusk Network (DUSK).
Dalvir Mandara is a Quantitative Researcher at Macro Hive. Dalvir has a BSc Mathematics and Computer Science and an MSc Mathematical Finance both from the University of Birmingham. His areas of interest are in the applications of machine learning, deep learning and alternative data for predictive modelling of financial markets.
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.