Daily Crypto Market Analysis Nov 2nd 2018



Total Market Capitalization (Coinlib.io)

Above is the total market capitalization for the cryptocurrency market.


As calculated by Coinlib.io, there is still a positive average daily return for the crypto market over the last year (approximately 14%/day). 



If we scroll in to the weekly option (picture below), however, we can see an average day over day loss of -0.14%, which reflects the minimal movement of the market over the past few weeks. 



The total market capitalization for the cryptocurrency market at the time of writing, as one can see above, is approximately $205.11 billion.



Bitcoin Dominance % (Coinlib.io)

Surprisingly, there’s been absolutely no change in the total dominance % of Bitcoin over the previous seven days. 

What is ‘Bitcoin Dominance %’ ? 

Definition: Dominance is measured as the % of market capitalization that Bitcoin accounts for. Market capitalization is determined for each coin (conventionally in this space; its more of an unspoken rule) by multiplying the price by the amount of coins in circulation and not the total coins that will be distributed.


This difference between the coins in circulation and total coins that will eventually be distributed (full supply) is an important distinction to make, because the former variable can fluctuate greatly due to a variety of factors.

An Observation About the Bitcoin Dominance %:

The fact that the dominance % for Bitcoin hasn’t changed in a week though, just underlies the extreme lack of volatility in the crypto markets currently.



Crypto Market Total Volume (Coinlib.io)

This metric is perhaps the most confounding of them all for several reasons which we’ll cover below.

Before we do, however, please view the figure displayed below for your convenience.[Click to maximize]


Analysis of the Chart

As we can see in the chart above from Coinlib.io, the day over day decrease in volume over the last 6 months averages at approximately 77.30%.

Comparatively, the change between the peak volume over the last 6 months ($40.38 billion USD) and today’s current 24-hour volume for the crypto markets ($6.04 billion USD) stands at a whopping -85%.

Currently, the volume is currently near the lowest that it has been throughout the entire year, justifying why there’s been hardly any movement in the crypto markets as of late.


Money Flow in the Past 24 Hours (Coinlib.io)

The money in-flow visualizations are some of the most valuable visualizations on the entire website (Coinlib.io).



Analysis of the Chart:

As one can see in the chart above, the Korean Won and Tether represent the biggest in-flows of capital into the market, with Korean Won slightly outpacing Tether at the current moment.

Coming in third is the U.S. dollar, followed by a nominal percentage of Euros, JPY, CNY and Pounds relative to the to three currency in-flows (Korean Won, Tether, U.S. Dollar).



Analyzing the Cryptos Receiving the Most Volume


Among the cryptocurrencies depicted above, Bitcoin is predictably receiving the most volume. This in-flow of cash from initial fiat bases firmly implies that Bitcoin is still the ‘portal’ or port of entry to the the rest of the cryptosphere. 


Tether In-Flows


If you take a look at the money flow chart again, you should be able to observe that Bitcoin is the biggest beneficiary of Tether in-flows, with Ethereum coming in at a close second.


Also, it appears that a substantial number of Tethers that are being used to buy Bitcoin appear to be flowing into Ethereum as well. Thus, Etheruem deserves a closer look (metric analysis) for those that are looking to potentially ‘get in’ during the accumulation phase (Wyckoff) if that is what is indeed happening.


Other, more nominal destinations for Tether in-flow appear to be devoted to: Bitcoin Cash, $EOS, and, to a smaller extent, Litecoin.

All other direct in-flows targets represent a volume influx that we have deemed to be too insignificant to be worth mentioning in this piece.


Proportionate Spending for Tether In-Flows 

Among the Tether in-flows that are being used to purchase Bitcoin, it appears that the same proportion of bitcoins are being used to purchase Litecoin, Bitcoin Cash, and $EOS as what we observed through the direct Tether in-flows.

Again, Bitcoin and Ethereum are by far the largest benificiaries of Tether in-flows and, when accounting for the amount of Bitcoin that was redirected toward Ethereum, it appears that Ethereum is one of the major winners in the volume market today.


Korean Won (KRW) Currency In-Flows

Korean Won in-flows are a lot more diverse and eclectic in terms of its resulting allocation of capital vs. Tether in-flows.


Primary Target for Korean Won In-Flows 

Like Tether, Bitcoin is the primary target for Korean Won in-flow, receiving $578.60 million USD worth of the currency.


More Parity Oberved in Korean-Won In-Flows

The gap between Bitcoin (578.60M USD) and the second-largest recipient of capital in-flow WTC; $347.56M USD) for KRW is not nearly as big as what calculated for Tether (difference of $466M USD for Tether In-Flows; only $230M USD difference for Korean Won despite the larger overall in-flow).


Second Largest Recipient of Capital In-Flows

Specifically, the second-largest recipient of Korean Won capital in-flows, as stated above, is Waltonchain. This is a somewhat surprising result since Waltonchain is currently ranked #57th among all cryptocurrencies with regards to market capitalization.

Remainder of Korean-Won In-Flow Rankings

Behind WaltonChain (WTC) are; ZCash ($237.90M USD), Monero ($206.83M USD), Litecoin ($150.36M USD), Ethereum Classic ($144.02M USD), and $EOS ($84.71M USD), with Ethereum and Ripple coming in last among the aforementioned cryptocurrencies with just $50.61M and $31.80M USD of daily volume stemming from KRW in-flows, respectively.

There are a couple of other cryptocurrencies receiving some capital in-flow from the Korean Won apart from those listed above, but that’s nominal enough to the point where we have decided to exclude mention of it for the time being.

The redirected in-flow of Bitcoin from the Korean Won presents no greater information of note than what we already have at our disposal in the markets.


Analyzing Ethereum Currency In-Flow

What is most notable is the amount of in-flow into Ethereum by various sources

In total, $692M USD in total volume has been directed to Ethereum according to the Coinlib.io chart.

There has also been a redirection of approximately $98.15M USD worth of Ethereum into $EOS though. This $98.15M USD total accounts for approximately 15% of the $EOS 24H volume for today ($657M USD; Source: CMC).


Analyzing $EOS Currency In-Flow

Another notable anomaly on the chart is the $EOS volume.

In total, there is $389M that can be attributed to capital in-flow from Tether ($108.76M USD), Bitcoin ($98.76M USD), Ethereum ($98.15M USD), and the South Korean Won ($84.71M USD). 




Let’s Check Out the (Exclusively) Crypto In-Flow Chart




Bitcoin is an Established Entry Point

As explained before, Bitcoin is the ‘entry point’ into the crypto markets and that has not changed at all. Ethereum also appears to be secondary entry point, which makes sense because Ethereum is the second most commonly used crypto trading pair currently.


Acknowledging Redirected Volume

However, as noted above, the $90m+ redirected volume is definitely something worth noting because there is no other currency that has nearly this much trading volume from Ethereum. Also, according to the chart, that $90M USD represents money flowing into $EOS from Ethereum, rather than between $EOS and Ethereum.

It’s also worth noting that $ZCASH is also performing exceptionally well in terms of capital in-flows relative to its position in the market cap (ranked by MC).


Notable Divergence in 24H Volumes and Market Capitalization Rank (Coinlib.io)

Below is a visualization of the T20 coins by market capitalization:

Below is a visualization of the T20 cryptocurrencies by 24H volume:

Some notable observations:


‘Others’ Category (from Market Cap Chart) is Non Existant on the Volume Chart

The ‘Others’ category (which represents all of the coins outside of the T20), is ranked third in terms of market capitalization, yet does not aggregate enough market capitalization for it to be placed on the 24H volume chart.


Coins outperforming their market capitalization share (among T20 cryptos) in 24H volume

$EOS, Dash, Bitcoin Cash, $NEO, Ethereum Classic [by a wide margin], Litecoin [by a wide margin], and Monero.


Coins underperforming their market capitalization (among T20 cryptos) in 24H volume

$XRP, Stellar [severe underperformer], ‘Others’ [non-existant on volume chart], $TRX (Tron), $XEM (NEM), Cardano [non-existant on volume chart], and Bitcoin Cash.



There are simply too many things worthy of note in this article to summarize into one, concise conclusion.


However, if there’s one take away you should leave this article with, it is this:

There are plenty of ‘leads’ embedded throughout which may serve as helpful starting points for subsequent, lucrative investment opportunities. Make your own analysis as well and see if you can identify some useful correlations. 



Disclaimer: Nothing in this article is meant to be construed as trading/investment advice and thus, should not be portrayed as such. The author(s) have no direct investment(s) in any of the cryptocurrencies mentioned within this piece.



Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.