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Crypto market snapshot | May’18

The crypto markets are very active and volatile. The market environment changes every day and minute. Below we offer a weekly crypto market snapshot that outlines the market dynamics, trends, and behaviour.

Overall market shares

The crypto market capitalization is ever-changing, with typical cycles of rising and fall. The last year’s hype magnetized the attention of lots of people not only from finance and investment capital but also unprepared mass markets. Though being relatively small, the market continues its formation showing big volumes of daily transactions.

We can definitely see the high and too risky levels of volatility in this market. And we also know that the more you risk, the more you can earn. The typical approach to trading market analysis presumes collection and analysis of market data and dynamics. Especially when we apply machine learning and artificial intelligence, we need to collect relevant data and appropriately analyze them.

We would like to collect such information on regular basis and provide for your use.

Top crypto exchanges, by daily volume

People typically buy or sell tokens through crypto exchanges. From time to time, new exchanges appear and try to attract more customers to their portfolio. The most active crypto exchanges generate the majority of daily trading turnover. The list of Top-20 crypto exchanges with daily volumes of trading (in $) changes only slightly.

As of mid-May, the first 15 crypto exchanges show more than 80% of daily trading volumes.

Please see the list in the table below:

Table 1: Top-20 crypto exchanges by daily trading volume, as of mid-May, 2018
The market is showing first signs of consolidation, we expect this trend to continue in the foreseeable future.

For people considering trading opportunities, it is recommended to select the exchanges with larger daily volumes. It is good to trade active assets (similar to the crypto world as in regular trading markets), as you can always decide when to buy or sell.

If we take into account only the Top20 crypto exchanges, their market shares look as follows.

Diagram 2: Top20 crypto exchanges, with market shares recalculated among the Top20

Market dynamics to trading crypto assets

Diagram 3: Top‐20 crypto assets daily trading volumes and their weekly dynamics

The diagram above clearly illustrates the hype that we had at the beginning of this year. One of the most significant reductions was in Bitcoin. Its daily trading volume just fell following its decreasing price.

However, we see that starting in mid-April, the daily trading volumes began to grow. And other players appear on the market. Bitcoin is still among the trading leaders but other crypto assets re-arrange the crypto trading environment, e.g. EOS, Bitcoin Gold, etc.
Since mid-April trading volumes are growing again, but this growth is not directly linked to growing market capitalization and might be a sign of investors accepting new pricing levels.

Diagram 4: Daily trading volume for Top20 crypto assets (weekly snapshots)

Trading crypto assets: gainers and losers

Crypto assets are very volatile in trading, and they require strict risk management from a trader. However, some of the projects have more value and future prospects. Then the corresponding token show continuous growth.
Often crypto assets show short-term growth with later decline. And vice versa, some crypto assets fall at the beginning and thus become attractive for buying by risky investors who believe in a project and expect its growth in future.
Below you can see a market snapshot displaying market gainers and losers in terms of 24 hours growth or loss. It is clear the more established cryptocurrencies generally show much lower volatility, therefore, having the lower risk that is linked to lower expected returns.

Diagram 5: Crypto market gainers, as of May 20, 2018 (24 hours change)
Diagram 6: Crypto market losers, as of May 20, 2018 (24 hours change)

Conclusion

This short analysis does not aim to tell you when to buy or sell. The only purpose is to outline the current crypto market snapshot.

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