Crypto Briefing’s CB10 Index Sees Large Rebalance to ETH, DOGE

May’s rebalancing saw a big drawdown in Bitcoin’s allocation as Ethereum and Dogecoin took the lead.

Key Takeaways

Crypto Briefing’s CB10 index has doubled in value since it was created in January.

Ethereum was the top gainer in the index, enjoying 63% monthly returns in April.

Dogecoin and Solana entered the index replacing Filecoin and Stellar.

Crypto Briefing’s CB10 index of the top ten cryptocurrencies weighted by market capitalization has continued to outpace Bitcoin in this bull run. 

The index’s monthly reconstitution was performed at 10 am on May 3, 2021. 

CB10 April Performance 

CB10’s return for April stood at 11% at the time of reconstitution. The annual compounded return of CB10 is 100.7%, while the sum of individual monthly gains is 82%.  

The biggest winner of the index in April was Ethereum’s native token. ETH gained 63% since the last rebalancing schedule. At the same time, Bitcoin’s price is nearly at par, around $55,000. 

CB10 $1000 experimental portfolio tracker. Source: Google Sheets

Filecoin was the biggest loser, down 15% from Apr. 5, as the token failed to maintain the bullish moment after a 10x rise to the peak of $237. 

Steller also failed to draw the buyer’s attention last month due to a lack of DeFi adoption on the platform. 

Crypto Market Trends 

Bitcoin’s dominance fell below 50% for the first time in three years. Ethereum and Dogecoin took the most from Bitcoin’s share of the crypto market. 

Dogecoin’s pump exhibited clear signs of a retail hype. DOGE made a new all-time high of 70 cents with a total market capitalization of $90 billion. 

The 30-day average search volume on Google for Bitcoin (blue), Ethereum (red), and Dogecoin (yellow). Source: Google Trends

The extravagant rise of the high-inflationary meme coin does sound alarm bells of a bubble. However, the GameStop incident is still fresh, which reminds the market not to underestimate the power of a retail mania. 

The pump in Dogecoin also caused an increase in cryptocurrencies traded on Robinhood. The American online brokerage firm has listed five tokens besides DOGE: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic. 

The strength in ETH, on the other hand, is driven by consistent demand. 

As the price of ETH continued to rise, the network contributors have finally been able to reduce the average price to 45 Gwei from a much higher range of 150-200 Gwei. The Berlin hard fork and increased adoption of Layer-2 has improved the apparent gas limit of the network. 

ETH price and Gas price in Gwei. Source: Glassnode

While an ETH transaction still costs around $30, users have continued to use the network at its maximum capacity. Moreover, the supply of ETH in smart contracts is consistent at around 22%. 

Rebalancing Stats for May 2021

The rebalancing event on May 3 saw a 9.5% decrease in CB10’s Bitcoin allocation. Solana’s SOL token and Dogecoin replaced Filecoin’s FILE and Stellar’s XLM on rebalancing. 

Uniswap, Litecoin, Bitcoin Cash, and Chainlink saw positive gains in allocations, as DOT’s allocation dropped by 0.4%. 

The massive pump of 1,000% in Dogecoin in April pushed the meme-coin to the fourth position on CoinGecko in terms of total market capitalization, outpacing Tether’s USDT and XRP. 

DOGE was already trading on Robinhood, a top online brokerage in America. The token’s listing on Gemini has made the token easily available for U.S. investors, making it the third-largest cryptocurrency in the CB10 index. 

CB10 live distribution and monthly rebalancing stats. Source: Google Sheets

The exclusion of BNB from the index due to non-availability on American exchanges has robbed CB10 of the opportunity to capture the DeFi craze on Binance Smart Chain (BSC). 

The price gains in tokens of other competing Layer-1 networks, Cardano and Polkadot, were comparatively lower than ETH and Binance Coin. The new inclusion of Solana in CB10 will look to compensate for the loss in BNB. 

The method of performing the rebalancing was shared in the first schedule in February. Investors can opt to book monthly gains or reinvest the proceeds for the compounding effect. 

CB10’s hypothetical portfolio follows a compounding strategy. 

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Source: cryptobriefing.com