Benchmark Crypto Indices Weekly Performance Review — March 31

Over the past seven days, the FS CryptoFX Agg Index increased by 1.9%, compared with a 10.3% increase for the S&P 500. In line with the rally seen across other asset classes, crypto markets were up broadly last week. Bitcoin’s price surged and reached nearly $7,000 on Wednesday morning before giving back most of its gains throughout the weekend and finishing up just 1.6% last week.

Benchmark Crypto Indices Weekly Performance Review — March 31

Alts rally and Privacy sector continues its leadership
The crypto market is in a typical “rebound” mode – smaller cap alts outperformed the mid-cap tokens, while the mid-cap tokens outperformed the large caps. The best performing size-based index was FS CryptoFX 250, which was up 3.2%, while the worst size-based index was FS CryptoFX Eq Wt, which was up 1.3%.  The Privacy sector’s leadership persists – FS CryptoFX Prvaicy index (+3.4%) once again outperformed all other FS CryptoFX indices in the past week. After being the laggard for four weeks, the Platforms (+1.7%) improved and were the second-best performing sector-based index. Primarily due to the poor performance of Huobi Token (-2%), the FS CryptoFX Exchange index was only up 1.2% last week, lagging other sector-based indices.

Benchmark Crypto Indices Weekly Performance Review — March 31
Benchmark Crypto Indices Weekly Performance Review — March 31

Stablecoin Market Cap surpasses $7.5bn
Chalk up another milestone for stablecoins. The total market cap of this segment surpassed $7.5bn this week and as of yesterday, accounted for about 4% of the total crypto asset market cap. Most notably, stablecoin market cap is up $1.9 billion since the start of the month. To give some context, it took over 3 years for stablecoins to reach $1.9bn in market cap (which they did in January 2018).

While Tether (USDT) continues to reign supreme with a dominant 85% share of the stablecoin market,  new alternatives, despite limited listing compared to USDT,  are gaining traction. Launched in October 2018, Circle’s USDC stablecoin has grown from $200mm in market cap at the start of 2019, to about $700MM and now accounts for about 9% of total stablecoins in circulation.

One driver of the recent increase in stablecoin market cap has undoubtedly been the widespread turmoil in financial markets. In the face of large swings in crypto asset prices, investors have elected to park some “money on the sidelines” in the form of stablecoins to weather out this storm. Nevertheless, this increase is another data point in the continued rise of stablecoin market cap against a broader crypto market which continues to vacillate within prior ranges. 

Benchmark Crypto Indices Weekly Performance Review — March 31

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