According to the weekly cryptocurrency update by Huobi Research, the research arm of Huobi Pro, the digital asset market seems to have “put a break on its current downtrend.” In terms of market capitalization among the top 10 digital coins, TRON’s TRX had the largest gain of 7% while IOTA had the largest decline of 13%. With regards to price volatility within the same category, IOTA had the highest rate of 0.0063 sd while BTC had the lowest, 0.0028 sd.
Over the same duration, the biggest market gainers were TRON’s TRX and ETH while the biggest losers included IOT, NEO and LTC.
In spite of an overall market turnover decline, some digital assets performed exceptionally well. EOS had a turnover of 80%, TRON 49% and BTC 29.3%. On the other hand, the coins with the lowest turnover included Stellar with 7.8%, Ripple with 10.6% and Cardano with 16.1%.
One of the most notable aspects highlighted in the Huobi Research weekly cryptocurrency update is the fact that prices of the top 10 digital currencies no longer seem to have a correlation. Correlation refers to the extent to which any two assets move in tandem. Huobi data analytics indicate the lowest weekly coin correlation between IOTA and ETH at 0.12. EOS and NEO followed with a 0.22 correlation while EOS and IOTA had 0.28. However, according to the weekly coin correlation index IOT and XRP demonstrated the highest correlation at 0.93. Huobi data analytics also show that IOTA and NEO had a high correlation of 0.92 and IOTA and BCH followed closely at 0.91.
The cryptocurrency market downtrend has taken a number of breaks in the recent past which have not been sustainable and as such, the bears seem to have control of the market as a whole. Notably, however, the most recent bearish drops have been followed almost immediately by bullish recoveries. A good case in point was when bitcoin hit a new low over the past weekend. Dropping to its lowest point since February this year, BTC price went to around $5,800 on Coinmarketcap. But within less than half an hour, it was back up to $6,000. A similar trend is notable on other coins as well, most of which are making rapid comebacks from current bearish trends. This could be a positive sign that a bottom is indeed in sight for the cryptocurrency market as a whole.
In the meantime, some projects seem to be struggling under the weight of the negative market sentiment and as a result, are highly undervalued. Zilliqa (ZIL) is one such project whose coin is currently trading at $0.067 with an overall market cap of $509 million. Its platform uses network sharding to address one of the most pertinent problems of blockchain technology, scalability.
In fact, Zilliqa is the first network to put the sharding theory into practice. As a result, it has been able to achieve over 2,400 transactions per second (TPS) while using 3,600 nodes on their testnet. Under its framework, the TPS increases as the network expands, which is the opposite of top networks such as BTC and ETH. Set to launch its mainnet in Q3 2018, Zilliqa offers remarkable potential for payment networks, digital advertising and gaming among other industries. Its prices had in fact gone up as high as $0.2 in mid-May but the bearish market seems to be taking a toll on it.
If you have not already done so, create your very own Huobi account by clicking here to view the market dynamics of Zilliqa and other similarly undervalued projects. Armed with the right information, you can be able to get in on high potential projects while token prices are still inviting.