Commentary

The last quarter revealed a clear divergence between traditional financial instruments and digital assets. The S&P500 stood out with a solid gain of 5.43%, comfortably outperforming the Nasdaq, which posted a modest 1.87% return. Meanwhile, Gold surged by an impressive 13.05%, making it one of the top-performing traditional assets, while Bonds 20+ delivered a strong return of 7.58%. On the flip side, Oil experienced a sharp decline of -12.15%, and the US Dollar Index fell by -4.81%.

Index Highlights

The digital asset sector experienced a challenging quarter, with most indices posting negative returns. The Ethereum Benchmark Rate saw a significant drop of -24.24%, while DeFi led the declines in the sector with a steep loss of
- 20.34%. Broad digital indices like Digital Assets 5 and Digital Assets 10 fell by -5.39% and -5.75%, respectively, while smaller assets fared worse, as the Digital Assets Small index dropped by -5.58%. However, there were pockets of resilience: Bitcoin managed a modest gain of 2.43%, and MemeCoin surprisingly outperformed with a 4.30% return. Digital Assets Mid also bucked the trend with a slight increase of 1.06%, showing that not all segments of the digital market struggled. Despite the overall downturn, certain areas in the digital space demonstrated potential amid broader challenges.

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