Published by research firm Messari report good On the performance of 5 sectors in the crypto industry after the recent crash. Written by Roberto Talmas, the report determined that smart contracts (Solana, Cosmos, Polkadot, Kusama, and others) were least affected by the incident.
The main cryptocurrency corrected over 50% in mid-May due to continued selling pressure. on June 3third The crypto market closed on the positive for the first time since that moment. As Talamas noted, the smart contract sector saw a return of 3.11% in total assets, such as solana, dot, atom, ksm, ckb.
As seen in four, DeFi projects and decentralized exchanges have returns as high as 2.70%, followed by cryptocurrencies With minimal returns then web3 applications. In general, the performance of the crypto market for the week of June 3third One was “a bit bumpy,” the researcher said. she added:
Asset prices across the board fell by the middle of the week, resulting in losses of 10-25%. Starting May 30, portfolio returns found some grounding as prices regained some of their earlier performance in the week.
Solana and the crypto market affected by a high volatility
Over the course of the week, Talmas observed the V-shaped pattern of the regions studied as a sign of potential improvement. However, by the end of the week DeFi and Web3 started performing poorly and saw minor losses.
Chainlink (Link), Uniswap (UNI), and Aave (AAVE) were the worst-performing assets in the Web3 and DeFi sectors, respectively. UNI and AAVE saw losses of around 3.5 and 4.7%, while LINK lost 6% during the same period.
This suggests an increase in volatility. On this subject Talmas said:
(Volatility) All sector portfolios remain elevated after the spike triggered by the market crash in mid-May. Before the crash, volatility was almost the same across all sectors, ranging from 3-6%. After the crash, the volatility of the sector has spread widely.
Along with volatility, the correlation between Solana and all assets has also increased. This metric reached 85% and 95% for some pairs.
As seen below, correlation with The market’s leading asset, bitcoin, has been steadily increasing. Talmas said the trend began in early May. During this period, some cryptocurrencies started recording losses.
DeFi and DEX sectors are most correlated with Bitcoin and Solana Smart contract platform with least correlation record With an increase of 20% last month. The Talmas also noted the following:
The correlation between Ethereum and all sector portfolios is now equal to or greater than 90%. In addition to the portfolios with heavy allocations for Ethereum (smart contract platform and top assets), the DeFi and DEX portfolios are the ones with the highest correlation coefficients which stand at 94% and 93% respectively.
At the time of writing, Solana (SOL) is trading with a minor loss on the daily chart at $38.83 and a gain of 15.4% on the 7-dark chart. It looks like the SOL’s recovery is showing highest level of confidence and if the trend continues, it could quickly revert to the previous highs.