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
During the first week of February, the total crypto market cap grew by over 10% to exceed the $2 trillion level for the first time since January 20th. The strong bounce in the market led Bitcoin to regain the $42,000 level and Ethereum to regain its $3,000 level, and only time will tell if this bounce is a break of the downtrend or is a bear market rally. Almost all the coins in the top 100 by market cap had double digits weekly gains, with GALA being the biggest winner with a 90% weekly gain.
Figure 1: The Crypto Market Cap
Data as of 02/07/2021 – Past performance is not indicative of future performance
TM Performance
With most coins having a strong weekly rally, the TM indices were able to capture good opportunities and generate good weekly gains. In fact, all the TM indices had worthwhile weekly gains except Coinbase’s daily high-cap index. A summary of the weekly results is shown in Figure 2 below. The past week was very strong for low-cap tokens, as the low-cap indices had the best overall performance. To have a better look at the strong performance, Figure 3 below shows in more detail the allocation of the Kucoin Monthly Low-Cap index, which has returned 23% over the past week. Figure 4 shows the daily returns of Kucoin’s Weekly Low-Cap index.
Figure 2: TM Indices Weekly Performance
| Exchange | Time-Horizon | Low_Cap | Weekly Performance |
| Pancakeswap | Daily | No | + 14% |
| Kucoin | Daily | Yes | + 14% |
| Pancakeswap | Daily | Yes | + 14% |
| Exchange | Time-Horizon | Low_Cap | Weekly Performance |
| Kucoin | Weekly | Yes | + 25% |
| Gate | Weekly | Yes | + 22% |
| FTX | Weekly | Yes | + 21% |
| Exchange | Time-Horizon | Low_Cap | Weekly Performance |
| Kucoin | Monthly | Yes | + 23% |
| Gate | Monthly | Yes | + 19% |
| Pancakeswap | Monthly | Yes | + 18% |
Data as of 02/07/2021 – Past performance is not indicative of future performance
Figure 3: Kucoin Monthly Low-Cap Index
Data as of 02/07/2021 – Past performance is not indicative of future performance
Figure 4: Kucoin Weekly Low-Cap index
Data as of 02/07/2021 – Past performance is not indicative of future performance
TM Grade Analysis
Crypterium (CRPT) and Telos (TLOS) have been showing up in the TM indices over the past couple weeks 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 (in green) was the first time this token was allocated in the TM indices.
Figure 5: TM grade and TM indices allocation
Crypterium
Telos
QuantStamp
Kyber Network Crystal
Data as of 02/07/2021 – 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 low-cap 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 |
| Crypterium | 85 | 1/31 | 39% |
| Quanstamp | 85 | 1/31 | 44% |
| Kyber Network Crystal | 85 | 1/31 | 15% |
| FTX Token | 82 | 1/31 | 17% |
| Beefy.Finance | 85 | 1/31 | 10% |
Data as of 02/07/2021 – 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 Maker. Other popular coins in the TM indices currently are Sylo, Kyber Network Crystal, Decentraland, Telos, and FTX Token.
