Follow Us

Goldman Crypto Report Reveals Exchange Tokens, Proof-of-Stake Assets doing exceptionally well

Share on facebook
Share on twitter
Share on linkedin

Share

Goldman Sachs
Share on facebook
Share on twitter
Share on linkedin

The report said that the cryptocurrency market is maturing

  • Decentralized finance-related assets such gained strength in January and early February
  • Bitcoin is maintaining its position above the 40-week moving average
  • Proof-of-stake performed better than proof-of-work tokens since the end of 2019

In its latest report, Goldman Sachs revealed that Exchange tokens and digital assets associated with proof-of-stake blockchain networks had performed better in the broader cryptocurrency segment than privacy-focused digital tokens, which have underperformed. 

The cryptocurrency market is maturing.

Zach Pandl, Goldman’s co-head of foreign exchange strategy, and analyst Isabella Rosenberg co-authored the report. The report said that the cryptocurrency market is maturing. A careful analysis of the crypto’s market segments may help determine which network features investors are rewarding and the prospect for practical applications of the technologies.

The Wall Street firm has a peculiar tryst with cryptocurrencies, and it swings from flirtation to outright animosity. The publication of the report is the latest iteration of this strange riff-raff. In June, one Goldman division dubbed digital assets as not “viable” for client portfolios. However, the company’s analysts continued to cater to institutional investors with in-depth examinations.

Exchange tokens are digital tokens that are released by crypto exchanges such as Binance Coin. On the other hand, currency-like assets are represented by bitcoin. The report categorized chainlink (LINK) as a token used in other applications and monero (XMR) as a privacy coin.

Decentralized finance-related assets gained strength in January

XRP, which is a remittance token, performed remarkably well in the crypto market last November. The report added that decentralized finance-related assets such as uniswap (UNI) gained strength in January and early February.

Proof-of-stake performed better than proof-of-work tokens.

The report revealed that proof-of-stake networks had performed better than proof-of-work tokens since the end of 2019. The report also added that crypto assets are a top-heavy market as compared to other asset classes. Bitcoin has the lion’s share of the cryptocurrency market and accounts for 46% of the cryptocurrency market, and ether (ETH, -2.32%) accounts for 20%. Compare this with the two largest stocks in the S&P 500 index account for roughly 12% of the market capitalization, the report added.

Bitcoin continues its dream run and remains in a long-term uptrend, and it seems it has put behind the crash by 50% from an all-time high of over $63,000 in April. 

Buyers were able to prevent the value of BTC from falling below 30,000 after a consolidation phase which dragged on for two months and saw price corrections of an unprecedented scale. However, bitcoin faces resistance at $50,000 to $55,000, which could stall the recovery given short-term overbought signals.

The chart below shows an ascending path formed from the 2017 price of $16,000 and the 2021 all-time high of $63,000. The 2019 and 2020 price lows formed rising support as buyers reacted to oversold conditions.

Source: TradingView

2018 was a bear market, and thankfully, Bitcoin is maintaining its position above the 40-week moving average, reflecting renewed upside momentum. However, Bitcoin will need to form a decisive break above $55,000 to resolve the selling pressure from May fully.

Leave a Reply

Your email address will not be published. Required fields are marked *

Download our App for getting faster updates at your fingertips.

en_badge_web_generic.b07819ff-300x116-1

We Recommend

Top Rated Cryptocurrency Exchange

-
00:00
00:00
Update Required Flash plugin
-
00:00
00:00