Weekly Cryptocurrency Commentary
Last week, we had expected crypto prices to fall as global crypto trading volumes had declined in the previous week. Our thesis played out as the global MCAP of cryptos declined 2.67% WoW to US$2.19T. We are expecting crypto prices to strengthen this week as global trading volumes were up 11% last week.
Source: Coinmarketcap
Performance of Select Cryptos
Prices of mainstream/popular cryptos were down 5% on average last week.
Source: FRC / Yahoo Finance
Companies operating in the crypto space are trading at an average EV/R of 10.6x (previously 11.3x).
Source: S&P Captial IQ / FRC
Source: S&P Capital IQ / FRC
Key sector developments listed below (mixed):
➢ JPMorgan (NYSE: JPM) announced plans to develop a blockchain-based payment system in collaboration with Siemens (ETR:SIE).
➢ HSBC (NYSE:HSBC) and Wells Fargo (NYSE:WFC) also announced that they are incorporating blockchain based payments to settle trades.
➢ Crypto exchange BitMart lost $196M to hackers. We believe ransomware remains one of the major threats for the sector.
