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Happy Friday. It was another rough week for crypto markets, with nearly every sector registering negative returns and a handful of long-tail “stablecoins” losing their peg.
Weakness prevails across the board, with all of our tracked indices posting negative returns over the past week, except for DePIN. This weakness comes as the majors BTC, ETH and SOL have established a daily and weekly downtrend, while equity indices have reversed ~3%-5% off their highs, adding risk back to the market. The selloff in equities has elevated the VIX to a level of 20.
Within crypto, DePIN was the one sector of strength, up 2% on the week, while the Launchpad and Solana Ecosystem sectors were the hardest hit, down 15% and 27.6%, respectively.
Looking at the top winners within DePIN, AR and FIL account for a majority of the sector’s strength, trading up 60% and 31%, respectively.
The Solana Ecosystem names are among the hardest hit, with MPLX (-24%), RAY (-21%), and JTO (-19%) making the largest downside moves. JTO’s underperformance comes amid a recent $6 million Paradigm-led seed round for Harmonic, a team building a new block-building engine on Solana which may seek to compete with Jito’s established integrations. Interestingly, KMNO is the one name in the sector to hold positive, albeit slightly, at only +0.24% on the week.
In a bearish trend, it will be increasingly important to focus on the sectors of relative strength, or hold patient for oversold and discounted levels on fundamentally strong names with a clear growth path.
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