The return spectrum of crypto has been very mixed in 2019. It shows the following characteristics. One is that the returns on large market cap cryptocurrencies are significantly higher than those on small and medium market cap. The second is that the returns among big cap also have been mixed, with Money-narrative cryptocurrencies are generally better, and protocol tokens represented by ETH and large funding staking tokens are down. The third is that the exchange tokens are rising steadily.
1. As can be seen from Figure 1, the MVIS Large-Cap index increased by 43.92% in 2019, but the Small and Medium-cap index fell by 16.33% and 36.3%, respectively. Although there was a wave of altcoins rebounding in the middle of the year, as the cryptocurrency market matured, high quality cryptos eventually attracted more funds.
Figure 1: 2019 MVIS CryptoCompare Digital Assets 100 Large/Mid/Small-Cap Index Returns
2. The returns among big cap also have been mixed. Among them, the Money-narrative cryptocurrencies’ returns are relatively good, of which BTC rose 89%, Litecoin rose 33.3%, and BCH rose 20.54%. However, XRP led the decline of within this bucket with a very poor -46.84% return. In addition, the performance of protocol tokens is unsatisfactory. The annual return on ETH is -5.28%. Other well-known protocols such as EOS and TRX also have annual negative returns. XTZ’s gained a good performance in 2019, thanks to the successful high Staking ratio, achieving an annual return of 182.29%. Most of the protocols still have a long way to go to create actual economic value. The adoption rate of tokens does not show much correlation with their prices. Moreover, how many protocols can finally realize the scenarios described in their white papers also make the market doubtful.
Figure 2: 2019 MVIS CryptoCompare ETH/XRP/BCH/BTC/LTC Returns
Moreover, the overall returns of several POS projects with large funding that were launched in 2019 is very disappointing. COSMOS, which raised $ 17 million +, fell 35%. While the other two famous projects with larger funding had extremely poor returns. One is HASHGRAPH, which has raised more than $ 100 million, has fallen by more than 90% after listing on the exchange. The other is ALGORAND, which has raised more than 60 million dollars, has fallen by more than 85%. Large funding projects in the primary market have not attracted enough developers and user attention.
3. The centralized exchange-native tokens have achieved steady growth in 2019. We can find that even in the second half of the year when the trading volume is down, centralized exchanges can still generate considerable revenue. The exchange-native tokens have also found a reliable product logic, such as providing holders with a discount opportunity to participate in IEO and trading fee reductions. In addition, exchange-native tokens have a similarity to stock equity. The exchange buying back or burning the tokens through its own revenue also stabilize the price of the token.
The Big Three exchange-native tokens perform well in 2019. The largest increase is OKB. The year-to-date return has reached 298%. HT gained 159%, and BNB gained 126% But yields YTD. It can also be seen in Figure 3 that OKB’s 2019 price trend line (dashed blue line) was steadily rising.
Figure 3: 2019 OKB/HT/BNB Annual Returns
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