In a sluggish weekend for digital assets, the CoinDesk 20 index, which tracks 20 top cryptocurrencies, slipped 1.7% as Hedera’s HBAR token and Internet Computer’s ICP coin led the market lower. According to data from CoinDesk Indices, the broad-based benchmark closed at 3805.48, down 64.94 points from Friday’s 4 pm ET level.
HBAR, ICP Biggest Losers as Most Majors Decline
Of the index components, 18 of 20 cryptocurrencies ended in the red. HBAR was the biggest laggard, shedding 11.3% over the two-day span. The native token of the Hedera network, a distributed ledger platform for enterprise applications, has struggled to gain traction this year despite the project’s notable partnerships with firms like Google and IBM.
ICP was not far behind, registering a 7.1% weekend loss. The cryptocurrency powers the Internet Computer blockchain, which aims to create a decentralized global computing system. ICP remains over 90% below its May 2021 highs around $700.
Beyond the top decliners, losses were widespread if less severe. Major tokens like Ethereum (ETH), Binance Coin (BNB), Cardano (ADA) and Solana (SOL) all fell between 1% and 2%. Stablecoins Tether (USDT) and USD Coin (USDC) held steady, as per design.
Bitcoin, Chainlink Buck Downtrend
Amid the sea of red, only two CoinDesk 20 components managed gains. Market bellwether Bitcoin (BTC) advanced a modest 2.2% to trade near $30,000. Meanwhile, Chainlink’s LINK token outperformed with a 5.2% rally. The jump came as the decentralized oracle network announced a major upgrade to enhance its security and scalability.
Despite pockets of strength, the overall picture shows cryptocurrencies struggling to shake off a months-long slump. Economic headwinds and regulatory uncertainty continue weighing on token prices.
According to a digital asset analyst
Zooming Out: CoinDesk 20 Methodology
For context, the CoinDesk 20 is designed to measure the performance of a diverse basket of significant cryptoassets. The index is price-weighted, akin to stock gauges like the Dow Jones Industrial Average, with weightings based on price levels scaled by supply. The ultimate goal is reflecting the investment experience of active participants in major cryptoasset markets.
- Assets are selected based on a combination of market cap and trading volume thresholds.
- Quarterly rebalancings ensure the index stays relevant as new projects gain prominence and older ones fade.
- Pricing data is sourced directly from major exchanges to avoid third-party aggregation errors.
The index launched in 2020 and is now widely tracked as a proxy for the broader market. Futures contracts based on the CoinDesk 20 have recently launched on multiple derivatives exchanges, allowing sophisticated traders new ways to gain exposure to crypto performance.
What’s Next for the CoinDesk 20?
Looking ahead, analysts expect trading volumes to remain subdued until a clearer catalyst emerges. Some point to the upcoming Ethereum merge event as a potential inflection point, which could reinvigorate interest in ETH and altcoins that rely on its ecosystem. Others are eyeing macroeconomic developments, particularly signs of easing inflation that could spur a rally in risk assets like crypto.
For now, investors seem content to wait and see. Amid the lull, the CoinDesk 20 index provides a valuable snapshot of how the industry’s established players are faring. Weekend blips aside, the gauge’s trajectory in the coming weeks and months could signal whether crypto winter is thawing or settling in for an extended stay.
