Web3 Weekly Report (7.01–7.07)
Abstract
Over the past week, the crypto asset market exhibited significant volatility, with distinct performance differences across categories. Categories such as IoT, Elrond Ecosystem, and MultiversX Ecosystem performed exceptionally well, demonstrating strong growth momentum. In contrast, categories like Metagovernance, Yield Aggregator, and Layer3 underperformed, reflecting market concerns in these areas. Overall, the hot categories showed a positive trend, with high market volatility and noticeable fluctuations in investor sentiment.
1. Category Overview
In the past seven days, the crypto asset market displayed significant divergence across various categories. Some categories showed strong growth potential and attracted investor interest, while others faced greater pressure and declining market confidence. The best-performing categories, such as IoT, Elrond Ecosystem, and MultiversX Ecosystem, highlighted the market’s positive attitude toward emerging technologies and innovative projects. Conversely, the poor-performing categories, including Metagovernance, Yield Aggregator, and Layer3, indicated weakening market confidence in these areas.
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Best-Performing Categories
The top three best-performing categories over the past 7 days were IoT (15.64%), Elrond Ecosystem (15.62%), and MultiversX Ecosystem (15.62%).
IoT (15.64%):
The IoT category performed outstandingly over the past 7 days, with excess returns of 23.35% and 28.1% compared to BTC and ETH, respectively. The best-performing project in this category was Hivemapper $HONEY, with a 7-day increase of 2.77%. This growth reflects the market’s high attention and recognition of the future potential of IoT technology.
Elrond Ecosystem (15.62%):
The top-performing project in the Elrond Ecosystem category was MultiversX $EGLD, which saw an 11.11% increase over the past 7 days. This growth indicates enhanced investor confidence in Elrond’s technological foundation and ecosystem development.
MultiversX Ecosystem (15.62%):
The MultiversX Ecosystem category also had its best-performing project, MultiversX $EGLD, with an 11.11% increase over the past 7 days. The repeated strong performance underscores MultiversX’s robust market presence and sustained investor interest.
Poor-Performing Categories
The three worst-performing categories last week were Metagovernance (-33.91%), Yield Aggregator (-22.42%), and Layer3 (-21.43%).
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Metagovernance (-33.91%):
The Metagovernance category had excess returns of -26.2% and -21.46% compared to BTC and ETH, respectively. The worst-performing project was Convex Finance $CVX, with a 7-day decline of -35.06%. This drop reflects the market’s lack of confidence in governance mechanisms and governance tokens.
Yield Aggregator (-22.42%):
In the Yield Aggregator category, the worst-performing projects included Convex Finance $CVX (-35.06%), Stella $ALPHA (-22.56%), and Badger DAO $BADGER (-20.04%). These declines indicate investor concerns about the sustainable profitability and risk management of yield aggregators.
Layer3 (-21.43%):
The worst-performing projects in the Layer3 category were Xai $XAI (-22.71%) and Orbs $ORBS (-19.17%). The continuous decline of the Layer3 category reflects market skepticism about the practical application and development prospects of third-layer solutions.
2. Hot Category Analysis
The best-performing hot categories over the past 7 days were Base Ecosystem (3.4%) and Binance Launchpad (1.18%).
Base Ecosystem (3.4%):
Within the Base Ecosystem category, the GT500 coin with the highest increase was BitMart Token $BMX, with an 11.22% increase over the past 7 days. This performance reflects sustained market interest in infrastructure projects and their importance within the ecosystem.
Binance Launchpad (1.18%):
The best-performing projects in the Binance Launchpad category were MultiversX $EGLD and Open Campus $EDU, with 7-day increases of 10.46% and 5.1%, respectively. This growth indicates strong market interest in new project launches and the potential of startups.
3. Industry Category Analysis
The performance of industry categories over the past 7 days has shown a downward trend. The average price change of category indices over the past week was -11.9%.
Among them, the top three best-performing categories were IoT (15.46%) and Side Chain (3.36%).
The IoT category outperformed BTC and ETH over the past 7 days, with excess returns of 23.35% and 28.1%, respectively. The top-performing project in this category was Hivemapper $HONEY, with a 7-day increase of 2.77%. This growth underscores the strong position of the IoT sector within the crypto market.
The top-performing project in the Side Chain category was Horizen $ZEN, which saw a 21.87% increase over the past 7 days. This performance highlights the potential of side chain technology in enhancing blockchain scalability and interoperability.
The poorest-performing categories were BRC 20 (-21%), Layer3 (-21.43%), and Yield Aggregator (-22.42%).
The worst-performing project in the BRC 20 category was ORDI $ORDI, with a 7-day decline of -26.63%. This decline reflects market skepticism regarding the adoption and practicality of the BRC 20 token standard.The Layer3 category has been the worst-performing category for three consecutive weeks, with the worst-performing project being Xai $XAI (-22.17%) over the past 7 days. The continuous decline indicates a lack of market confidence in the third-layer technology solutions.The worst-performing projects in the Yield Aggregator category were Convex Finance $CVX (-35.06%), Stella $ALPHA (-22.56%), and Badger DAO $BADGER (-20.04%). This trend suggests doubts about the long-term profitability of yield aggregators.
Despite the overall market’s significant divergence in performance, some categories like IoT and Side Chain have shown strong growth momentum. In contrast, the continued weakness of categories such as BRC 20 and Layer3 reflects a lack of confidence in specific areas. Investors should adjust their strategies based on the performance of different categories and focus on sectors with high growth potential.
4. Investment Outlook
Based on the data provided, investors are advised to focus on well-performing categories like IoT, Elrond Ecosystem, and MultiversX Ecosystem, particularly projects such as Hivemapper $HONEY and MultiversX $EGLD that have shown strong performance. Meanwhile, for poor-performing categories like Metagovernance and Yield Aggregator, caution should be exercised, and a deeper analysis of the reasons for their decline is recommended to evaluate future investment opportunities. In hot categories such as Base Ecosystem and Binance Launchpad, investors might consider participating while being fully aware of the risks involved.
5. About Us
Lucida （https://www.lucida.fund/ ） is an industry-leading quantitative hedge fund. Officially entered the Crypto Industry in April 2018, Lucida develops CTA Strategy / Statistical Arbitrage Strategy / the Arbitrage of Option Implied Volatility Strategy, at present, the team manages 30 million dollars, including 14 million dollars of proprietary assets.
Falcon （https://falcon.lucida.fund/ ）is a Web3 investment infrastructure driven by multi-factor models and assists users in “selecting,” “buying,” “managing,” and “selling” crypto assets. Falcon is a product incubated within LUCIDA in June 2022.
