Research firm Messari published a Report On the performance of 5 sectors in the crypto industry after the recent crash. The report by Roberto Talamas identified that smart contracts (Solana, Cosmos, Polkadot, Kusama, etc.) were among the least affected by this event.
Ongoing selling pressure caused the major cryptocurrencies to correct more than 50% in mid-May. On June 3research and development The cryptocurrency market closed positively for the first time since that moment. As pointed out by Talamas, the smart contract segment saw a total return of 3.11% in assets such as Solana, Dot, Atom, KSM, CKB.
As seen in Char, DeFi projects and decentralized exchanges enjoy equal returns of 2.70%, followed by cryptocurrencies With less returns after web3 applications. Overall, the performance of the crypto market for the week of June 3research and development It was “a bit bumpy,” the researcher said. he added:
Asset prices fell across the board by the middle of the week leading to losses of 10-25%. Beginning May 30, portfolio returns found some stability as prices rebounded and regained some performance earlier in the week.
Solana and the crypto market affected by high volatility
During the week, Talamas witnessed a V-shaped pattern of the studied sectors indicating a possible recovery. However, DeFi and Web3 started dropping by the end of the week and saw moderate losses.
chainlink (link), Uniswap (UNI), And Aave (AAVE) was the worst performing asset in the Web3 and DeFi sectors, respectively. UNI and AAVE experienced about 3.5 and 4.7% losses while LINK incurred a loss of 6% over the same period.
This indicates increased volatility. On the matter, Talamas said:
(Volatility) remains high across all sector portfolios after the sudden rally caused by the market crash in mid-May. Prior to the crash, volatility across sectors was roughly the same, ranging from 3-6%. After the crash, the sector’s volatility became widely dispersed.
With the volatility, the correlation between Solana and all assets has also increased. This scale reached 85% and 95% for certain pairs.
As shown below, the relationship with The dominant asset in the market, which is Bitcoin, is steadily increasing. That trend began at the beginning of May, Talamas noted. During this period, some cryptocurrencies started to record losses.
The DeFi and DEX sectors are the most closely associated with Bitcoin with Solana and Smart contract platform that records the lowest correlation An increase of 20% from last month. Talamas also noted that:
The correlation between Ethereum and all sector wallets is now equal to or greater than 90%. Aside from the wallets with huge allocations to Ethereum (smart contract platforms and top assets), DeFi and DEX wallets are the ones with the highest correlation coefficients at 94% and 93% respectively.
At the time of writing Solana (SOL) is trading at $38.83 with small losses on the daily chart and 15.4% profit on 7-circuit chart. SOL recovery appears to be showing higher conviction and could quickly return to previous highs if trend continues.