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
The total cryptocurrency market capitalization was around $1.77 trillion, which is roughly at the same level as last week, but fluctuates to the highest point at $1.92 trillion. The largest cryptocurrency, Bitcoin, went from $38,000 to its peak at $42,599 and then dropped back down to $38,900. Ethereum had a similar trend as Bitcoin, going from $2,490 to $2,570 as of writing. The biggest winners last week were Xido Finance (XIDO), THORChain (RUNE), Waves (WAVES), Zcash (ZEC), and Terra (LUNA) with a more than 15% rally. Xido Finance(XIDO) even went up 85%. Interestly, Waves, Zcash, and Terra were included in Token Metrics’ Kraken index.
Figure 1: The Crypto Market Cap
Data as of 03/14/2022 – 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 to 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.
In Figure 2, the overall cryptocurrency market is still in a bearish market regime since last November according to Token Metrics Market Indicator. We recommend that not seeing short-term bounce backs as signals to go long cryptocurrencies. Flexible long and short trading strategies should be applied to make sure your portfolio can thrive in this certain market condition.
Figure 2: TM Market Indicator
Data as of 03/14/2022 – Past performance is not indicative of future performance
TM Performance
Token Metrics indices are very helpful in providing insights and research recommendations to our customers. In Figure3 and Figure 4, we show the Token Metrics’ daily high-cap and low-cap best-performing cryptocurrency indices in the last week. Though the cryptocurrency market had a tough week with high uncertainty, we managed to be able to earn positive returns in some cryptocurrency indices. In particular, Binance low-cap indices had +9.0% weekly return. Token Metrics allocates capital among cryptocurrencies that have the highest TM Grades compared to their peers in the overall market.
Figure 3: TM Daily High-Cap Indices Performance
| Exchange | Time-Horizon | High-Cap | 7-day Return |
| Pancake Swap | Daily | Yes | + 2.0% |
| FTX.US | Daily | Yes | – 1.0% |
Figure 4: TM Daily Low-Cap Indices Performance
| Exchange | Time-Horizon | High-Cap | 7-day Return |
| Binance | Daily | No | + 9.0% |
| Kucoin | Daily | No | + 4.0% |
Data as of 03/14/2022 – Past performance is not indicative of future performance
TM Grade Analysis
Over the past week, Xido Finance (XIDO), THORChain (RUNE), Terra (LUNA) were the top performing cryptocurrencies. As in previous weeks, Waves (WAVES) once again was included in Token Metrics indices. In Figure 5, it shows how the TM grade evolved over time compared to the price of these tokens, and when they were included in a Token Metrics index. Except for Xido Finance (XIDO), the other four cryptocurrencies got included in a Token Metrics multiple times in the past few weeks. It’s obvious that cryptocurrency prices move consistently with their corresponding TM Grades. In addition, their TM Grades are all well above 80, which suggest that these are indeed high-quality cryptocurrencies and were backed by Token Metrics’ proprietary TM Grades.
Figure 5: TM grade vs Price
Xido Finance
THORChain
Terra
Data as of 03/14/2022 – 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 |
| Xido Finance | 83.15 | 03/13 | 85.3% |
| THORChain | 86.99 | 03/13 | 59.2% |
| Waves | 87.73 | 03/13 | 43.9% |
| Zcash | 80.28 | 03/13 | 41.4% |
| Terra | 87.46 | 03/13 | 15.3% |
Data as of 03/14/2022 – 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 PAX Gold, Terra LUNA, Waves, UMA and THORChain.
