Centralized and decentralized exchanges were the top-performing sectors during the week fueled by the excitement of the Coinbase IPO.
Top Assets by Market Capitalization
$DOGE and $XRP were the clear outperformers of the group with weekly returns of 114% and 88% respectively.
Sector Drill Down - DeFi
DeFi was the third best performing sector of the week with an aggregate return of 22.4%. Among DeFi assets, THORChain's native token $RUNE led the way, returning 54% on the week.
Sector Drill Down - Currencies
The currency sector was dominated by $DOGE and $XRP. Aside from these two outliers, the rest of the sector had returns ranging from 11% to 33%.
Sector Drill Down - Smart Contract Platforms
The smart contract platform was led by $VET with a total return of 63% over the week. $SOL was the laggard of the group ending the week with a -3% return.
Sector Drill Down - Centralized Exchanges
The centralized exchanges sector was the top-performing sector of the week with a total aggregate return of 29.4%. Despite the strong performance, $EDO underperformed all assets ending the week with a -16% return.
Sector Drill Down - Decentralized Exchanges
Decentralized exchanges also saw a boost from the Coinbase IPO. The leader this week was $RUNE followed by $CAKE, $SUSHI, $LRC, and $UNI.
Sector Drill Down - Web3
After a strong Q1 performance, Web3 was the underperforming sector this week. Web3 assets had the widest dispersion of returns with four out of the top nine assets ending the week with negative returns.
Asset prices across all sectors reached new all-time highs as that bull market continues with full force.
Here is a recap of what happened 👇🏻
In this piece, the @MessariCrypto research team and I dive into the performance of the overall market and drill down on some of the top-performing assets in each sector according to our taxonomy.
The top assets by market capitalization were dominated by $BNB. The token's run was fueled by the rise of Binance Smart Chain as a low-cost alternative to Ethreum.
Further aiding $BNB's run was the exchange's accelerating volumes and earnings fueled by white hot crypto markets.
Uniswap was the first decentralized exchange to popularize the use of a constant function. The easy-to-grasp constant product function set the stage for several innovations in the space.
1/ The DeFi Pulse Index (DPI) now has over $35M in assets showing increased demand for crypto indexes
While DPI is a good investment for beginners, it may not provide the diversification that sophisticated investors demand, leaving them overexposed to individual DeFi assets
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2/ Index funds are by far the most traded instruments in traditional finance. They provide diversification, broad market exposure, have lower fees, and seek to match the return of the market (or asset class) creating the perfect investment vehicle for new investors
3/ Despite these attributes, index funds can become highly concentrated depending on their construction methodology reducing the diversification benefits of the product. This applies in particular to capitalization-weighted indexes like the S&P 500 and the DeFi Pulse Index