Weekly Cryptocurrency Commentary

The global MCAP of cryptos is US$2.63T (a new all time-high), up 0.60% WoW, and 554% YoY. Bitcoin’s trading volume was up 24% WoW – this is very positive for crypto exchanges as their revenue is directly correlated to the trading volume of cryptos.

Total Cryptocurrency Market Cap

Source: Coinmarketcap

Performance of Select Cryptos

Price of mainstream/popular cryptos were up 9% on average last week.

Source: FRC / Yahoo Finance 

Companies operating in the crypto space are trading at an average EV/R of 17.9x (previously 18.3x).

Source: S&P Capital IQ/FRC 

Key sector developments are listed below:

  • Mastercard (NYSE:MA) announced it plans to start integrating Bitcoin and other cryptos into their services, allowing customers to buy, sell, and hold crypto on their credit cards, as well as allow customers to convert earned loyalty points into Bitcoin.
  • Developers of a crypto named SQUID (inspired by the Netflix/NASDAQ: NFLX hit show “Squid Game”) abruptly abandoned the project, and absconded with over $2M of investors’ capital. The crypto had soared to over $2,800 in a few days, to eventually drop to $0.004 as of today. This reflects the high-risk nature of this sector, and that investing in new cryptos can be very risky. The sector is highly prone to ransomware attacks.

Updates from Crypto Companies Under Coverage

We will release update reports on the following companies shortly: