2017 Market Performance: Crypto vs. Stocks
When looking across the globe, there were plenty of strong performing equity markets in 2017. Nevertheless, none compare to the massive appreciation seen within the cryptocurrency sector.
Warning: If you are primarily an equity investor, you may soon be compelled to enter the world of cryptocurrencies as the relative outperformance of the top cryptocurrencies in 2017, when compared to equity markets, was astronomical.
The top-performing stock market last year (excluding Venezuela with a 3,884 percent gain due to rampant inflation) was Zimbabwe with a 117.7 percent advance, while the top cryptocurrency Ripple, left Zimbabwe in the dust with an eye-popping 28,963 percent return. Ripple ended 2016 at $0.0065 and by Dec. 31, 2017 had risen to $2.25.
By the end of 2017 Ripple has overtaken Ethereum as the second largest cryptocurrency by market capitalization, at $77.1 bln and $72.9 bln, respectively. Although still far behind Bitcoin’s approximately $248.3 bln market capitalization, they are rising fast. The market capitalization of Ripple is up approximately 31,637 percent from a year ago and Ethereum has increased around 1,300 percent. A distant third is Bitcoin, up 447 percent over the past 12 months.
Top stock market performance 2017
As you can see in the following table, Top Stock Market Performance 2017, relatively high returns came from less developed and emerging stock markets such as Argentina with a 77.7 percent return, Mongolia which rose by 68.9 percent, and Kazakhstan, climbing by 59.3 percent. Of course, for most investors, there are barriers to accessing these stock markets. That may be one of the reason’s global investors have taken a liking to cryptocurrencies as they are global, can be accessed and traded 24 hours a day, seven days a week.
Major developed equity markets
In major developed stock markets, Hong Kong’s Hang Seng Index led the way with a 36 percent return, followed by India’s BSE Sensex 30, up 27.9 percent. The Hang Seng ended December at 29,919.15, close to the high for the year, and the second highest monthly closing price ever, second only to the record high peak from November 2007 of 31,958.41.
Since 2009 low the Hang Seng has been progressing higher in an ascending parallel trend channel. The index is now heading towards the top channel line, which will put it in the area to test resistance around the 2007 highs. That’s only 6 percent or so higher. It’s interesting to note that the Hang Seng has only had one down month during 2017, a testament to its strength.
India’s BSE Sensex 30 Index ended the year almost 10 percentage points lower than the Hang Seng, but a strong finish nonetheless. The Sensex had a solid close at a record high of 34,057, very close to the year’s high of 34,127.22. December triggered a monthly bullish trend continuation signal and follows a breakout of a two-year base in May. This is very healthy price behavior and supportive of a continuation of the bullish trend. As long as the Sensex continues to progress with a series of high monthly highs and higher monthly lows, further upside is likely.
The third best performing major stock market index last year was the S&P 500 (SPX), up 19.4 percent to end at 2,674. For the past 13 months the SPX has advanced as much as 29.3 percent, as of the year’s 2,694.97 high, in a sequential series of higher monthly highs and higher monthly lows, all in the face of growing choir of bears, waiting and ready to bounce. This monthly pattern continues to define a strong uptrend.
In addition to ending the year technically strong, in the upper third of December’s high-to-low price range, the close was at a new monthly closing high. When measuring the current advance from the February 2016 swing low, the SPX was up as much as 48 percent as of the recent high.
Can it keep going? Well, the prior rally (swing low to swing high) on a monthly basis, starting from October 2011, saw the SPX increase as much as 99 percent before moving into a prolonged consolidation base period. So far the advance is approximately half of that. By itself, this would indicate more upside potential.
Bottom stock market performance
Of course, not all stock markets were bullish last year, but the worst performers were relatively smaller exchanges. The bottom performing market for 2017 was the Sarajevo Stock Exchange. It ended the year down 18.5 percent to close at 562. Coming in second was the Qatar Exchange Index, with a loss of 18.3 percent, followed by the Karachi Stock Exchange Index, which dropped by 15.3 percent. Qatar, of course, has been negatively impacted by an economic blockade since June spearheaded by Saudi Arabia with support from other Arabian Gulf countries.
Cryptocurrencies: 2017 performance
This next chart shows the performance of the five of the larger cryptocurrencies including Bitcoin (BTC/USD). The cryptocurrencies shown in this chart and the accompanying table further down, is not comprehensive and is chosen as a sample of the more popular and widely traded cryptocurrencies.
It is interesting to see that the cryptocurrencies shown all started to accelerate higher around early-November, except for Ripple (XRP/USD). Ripple was late to the party but doesn’t seem to be losing any time making up for the slow start. You can see how it has been rising rapidly recently while the other major cryptos start to pullback. For the month of December Ripple has advanced more than 700 percent. The Ripple token is used to facilitate global payments by banks and other financial institutions.
Following the strong performance of Ripple is Dash (DASH/USD). Dash was up at least 9,400 percent for 2017 through Dec. 31. Dash broke out of a 32-month base into new high territory in February and has barely looked back. Over the past 10 months, since the breakout, Dash as advanced as much as 10,584 percent, as of its recent high of $1,595.76 reached in December. So far, since reaching that high, Dash has moved into a pullback, falling as much as 51 percent before bouncing.
Ethereum (ETH/USD) was the third-best performer for the year, up at about 9,000 percent to $757 at Dec 31. It started 2017 very strong, rising over 5,000 percent in the first five months before moving into a four-month or so consolidation phase. A classic symmetrical triangle consolidation pattern formed subsequent to the top. Ethereum broke out of that pattern with conviction in November, rising a little over 100 percent before confronting resistance at $863.0 last decade of December and sliding into a retracement. To date, the retracement has seen as much as a 40 percent loss in value from the high.
In fourth place comes Litecoin (LTC/USD), with a 5,582 percent advance of the year so far. Litecoin has been pulling back over the past couple of weeks, since hitting resistance at a record high of $420.0. That high completed a 735.8 percent increase in only six weeks, starting at the low of a three-week pullback at the beginning of November. The move was accompanied by increasing volume until the top, which is where weekly volume reached a record high.
Let’s now jump to Bitcoin, which comes in sixth place for the year out of the cryptocurrencies selected. Of course, Bitcoin has been the one getting much of the attention in the sector since the summer. It is up 1,390 percent year-to-date and was up as much as 1,935 percent at the record high of $19,666 hit mid-December. Interestingly, the second highest volume week of the past two years was seen in the next week following that record high. That was a down week.
Bitcoin had been advancing in a nicely formed parallel trend channel since the first quarter of the year until later in November. At that point, Bitcoin broke out through the top trend line of the channel and began to accelerate higher. This can be seen in the increase in the angle of ascent of price in the following chart.
Going back one to fifth place is Monero (XMR/USD). Monero is up 2,481 percent. It ended 2016 at $5.90 and jumped to at least $348.02 over the subsequent 12 months. This coin has been a steady progression higher throughout the year and recently hit a record high of $477 before pulling back. It remains in a clear uptrend.
IOTA (IOT/USD) takes seventh place with an advance of 1,356 percent since June, when it was launched. The high for 2017 was two weeks ago at $5.80. At the point, IOTA was up over 1,700 percent in just seven weeks. It subsequently declined as much as 80 percent off the high.
Finally, there is Bitcoin Cash (BCH/USD), released in August. Since then BCH has risen to $2,553 from $320. It continues to progress in an uptrend with higher swing highs and higher swing lows. It was up as much as 1,150 percent at the recent $4,000.10 high from Dec. 20.
Written by CoinTelegraph
Here are the top 10 cryptoassets of 2017 (and bitcoin’s 1,000% rise doesn’t even make the list)
Bitcoin’s value grew by more than 1,000% in 2017, but that wasn’t enough to even place it among the 10 best-performing cryptoassets of the year.
In a breakout year for cryptocurrency trading, the biggest winners were Ripple, which is touted as a new kind of payment system for banks, along with less familiar names like NEM, Ardor, and Dash. Here are the top 10 cryptoassets of 2017—plus bitcoin, which came in 14th place:
Cryptoassets include standalone cryptocurrencies as well as tokens issued on the ethereum blockchain. Our ranking is based on a comparison of the yearlong gains made by the 10 most valuable cryptoassets as of Jan. 1, 2018, as measured by data provider CoinMarketcap.
Ripple’s big gains—it rose an astonishing 36,000%—came largely at the tail end of the year. Here’s how its 2017 looked compared to bitcoin:
Bitcoin fares slightly better when compared against rival cryptocurrencies, meaning tokens with their own blockchains. This excludes tokens issued through so-called initial coin offerings (ICOs), which were a craze last year. Bitcoin makes it to eighth place in this ranking, although it’s still trounced by ethereum and litecoin:
The ICO craze attracted over $3.7 billion in funds this year, according to data provider Coin Schedule. Many of these projects only launched months ago. Yet big names like Golem and OmiseGo lagged behind lesser known ones like Ardor in the performance charts.
Bitcoin’s performance may seem lackluster compared to its newer, shinier, brethren, but it’s worth putting its gains in context. After all, the Nasdaq Composite Index gained 27% last year.
Written by qz.com
Ethereum (ETH) Price Reaches All-Time High of $870
Over the past few hours there has been a major boost in the price of Ethereum. Ever since it was ousted from the #2 position by Ripple, Ethereum was expected to bounce back. That moment finally came today as ETH reached an all-time high level of $870. The coin grew by about $140 in a matter of hours to reach this new all-time high level.
Ethereum’s Market Cap has now crossed $84 Billion and is just about $3 Billion behind Ripple now. It appears that ETH will be taking back the second position soon. Over the last 24 hours, ETH worth 233,810 Bitcoins has been moved around in the markets, resulting in this growth rally. The currency shot up by a little over 16% to reach this new all-time high.
ETH is one of the most trusted names in the markets. For years it has been viewed as a good alternative to Bitcoin. The technology that powers Ethereum has a much wider scope than most other coins – and that has been a belief held by those who invested in the coin or mined for it.
This sort of a growth was almost predicted – as it was apparent that Ethereum would be aiming at bouncing back to the #2 position. Moreover, with the $1000 mark approaching, more investors are likely to show interest in the currency. Ethereum recorded an unprecedented growth last year as it grew by almost 8600% in 2017.
However, while over the past few months many altcoins including Litecoin, Ripple and Factom grew in leaps and bounds, ETH appeared to be slow. It now looks like Ethereum has finally found the momentum it was looking for and big green candlesticks have begun to appear. This growth rally might just help ETH break the $1000 mark! This is indeed a ‘happy’ new year for those who had invested in it. Stay tuned with us for more updates on the world of cryptocurrency.
Written by Crypto Mimson
Dapp Browsers Will Radically Accelerate Mainstream Ethereum Adoption
In 2017, several Ethereum-based decentralized application (dapp) browsers gained significant popularity, primarily due to the rise of dapps like CryptoKitties. During its peak, CryptoKitties, the digital cartoon collectibles game, was responsible for more than 20 percent of the entire Ethereum network’s daily transaction volume.
CryptoKitties in particular was praised by some of the cryptocurrency sector’s experts like Andreessen Horowitz partner Balaji Srinivasan. Srinivasan noted that CryptoKitties has demonstrated the potential of the Ethereum network to process digital asset trading in a decentralized manner, without the involvement of intermediaries. According to Srinivasan:
“It’s one of the first examples of what people have been talking about for years: frictionless international trading of digital assets (not just cash) on a Blockchain.”
Difficult to replicate
But CryptoKitties was a one-time success story of a decentralized application that reached large-scale commercial success. It did so through extensive mainstream media coverage triggered by a sudden increase in demand. It is extremely rare for an app on the Ethereum protocol to achieve the level of success that CryptoKitties did.
Lessons from the past
To imagine the current structure of Ethereum’s decentralized application market, one has to consider the mobile app era prior to the existence of Google Play Store and Apple App Store. At that time, users had to download apps from websites directly from the distributors and developers. The process was highly inefficient and for apps to gain popularity, a significant amount of capital had to be allocated to marketing.
Over the past few months, Ethereum-based browsers have provided a better platform for users to search for innovative decentralized applications. These browsers are essentially operating similarly to the Google Play Store and the Apple App Store in terms of aggregating decentralized apps for users to peruse.
Bringing together dapps and users
Coinbase CEO Brian Armstrong explained in a blog post that in the future, Ethereum-based browsers could increase the accessibility of decentralized applications and potentially introduce them to a larger user and consumer base. Armstrong wrote:
“Our theory is that the smartphone + Ethereum + dapps offer an unprecedented opportunity to bring this to people all over the world. We’re attempting to increase the economic freedom of the world, and clean up some bad behavior in the lowest scoring countries. It can be easy to take the above tools for granted if you’ve only ever lived in developed countries. But for the majority of people living in the world today, those tools are inaccessible.”
Decentralized applications launched on top of the Ethereum protocol utilize the ERC20 token standard and operate with native tokens compatible with Ether. Consequently, the trading of digital tokens can be processed seamlessly on decentralized trading platforms. Still, experts like Armstrong believe that the adoption of Ethereum browsers and decentralized applications could take many months to achieve commercial success. Once they do, however, they are poised to revolutionize the dapps market.