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.

Total Cryptocurrency Market Cap

Source: Coinmarketcap

Performance of Select Cryptos

Prices of mainstream/popular cryptos were down 5% on average last week.

Indices

Source: FRC / Yahoo Finance

Companies operating in the crypto space are trading at an average EV/R of 10.6x (previously 11.3x).

EV/R of Crypto Companies

Source: S&P Captial IQ / FRC

Crypto Companies, Ticker, TEV/Revenue

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.