May’s crypto turbulence – influenced by both external factors and events within the sector – has become a cause of concern for many investors. Not only did we see Terra’s falling from grace, but many cryptocurrencies also experienced one of their worst monthly performance in May 2022. In this report, we are going to measure the performance of Bitget native token (BGB) and zoom out for a big-picture perspective.
BGB Performance in May
BTC and ETH Performance
With its dominance remaining above 40%, Bitcoin continued to exert a profound impact on other crypto assets, meaning that any changes in BTC price would be more than likely to affect the whole market. Next we have ETH or the Mother of all Altcoins, whose volatility could influence the majority of coins/tokens as well.
Bitcoin and Ethereum combined market cap made up almost 70% of the crypto sector. Source: CMC
BGB correlation with BTC and ETH
It is important, though, to know to which degree BGB was influenced by either of these two. As shown in the heatmap below, the correlation between BGB and BTC stood at 0.868 for May, while it was 0.884 for the BGB/ETH pair. In comparison to the 0.949 and 0.894 correlation for the BNB/BTC and BNB/ETH pairs, BGB definitely demonstrated more independence as an exchange token, allowing us to expect a more positive scenario with BGB price.
In fact, it is not far from the truth. Many investors had to suffer from heavy losses as the rout swept its way through the global market; the real question here is, therefore, how bad was it? How much is left from, say, a $100,000 investment?
On the sunniest day last month, the cumulative return of BGB was twice that of BTC, ETH and BNB at 1.12. In other words, only five days into the new month and you could have made a profit of 12%. Even during the debacle of LUNA, BGB managed to achieve a positive daily return of 14.7% compared to 2.5% for BTC, 4.2% for ETH and 5.8% for BNB on May 11, reversing the chart and pushing its cumulative return shortly to 7%.
Out of the four coins and tokens examined, BGB was the only one able to have a cumulative return above 1 on that day.
May went by and the three others’ losses started to accumulate steadily, resulting in a loss of at least 15% by the end of the month, i.e. a minimum net loss of $15,000. By contrast, BGB holders could still have realised their profits before May 9, and the worst they could have experienced was still much better than holders of other assets. As we eased ourselves into June, BGB holders were only $4,000 short of their starting equity – a very hopeful situation indeed.
BGB performance compared to other major exchange tokens
BGB has outperformed several other major exchange tokens in May. Our holders had the opportunity to reap a nice profit of 7-10% even on May 6 – May 9, the three first gloomy days for BNB, FTT and OKB holders.
May 12 proved itself to be the most disappointing, where OKB holders had to bear a $37,800 net loss while the figure was approximately $10,000 for BGB holders. All four tokens had recovered from this slump by May’s end, even though great losses lingered for people who invested in exchange tokens other than BGB.
When talking about volatility, BGB’s was even lower than ETH – which means a net difference of $40 was expected for BGB and ETH holders. The gap was even wider for BGB/BNB at $48 and BGB/OKB at a whopping $433, assuming an initial investment of $100,000. The more equity invested, the bigger this difference would be, and proofs from our previous calculations imply that this difference should benefit only BGB holders.
Other healthy chart signals for BGB
We can also make some observations using the BGB price chart for May. Losses slowly faded out since May 12, which was supported by the upward slope of the MACD. 14-day RSI for BGB also stumbled below 30, totally in sync with the indicator above. Please keep in mind that for the rest of May, this indicator for BGB swayed below the 50 level, coinciding with BGB trading sideways after having created a new low. All these indicators are suggesting a good time to grab some bags of BGB.
BGB chart in May. Source: TradingView
Why is BGB the next high-growth exchange token?
Let’s look at the bigger picture.
Currently trading at around $0.16, BGB is a relatively new token released by Bitget. We already had a strong start in 2022 ranking 2nd worldwide in terms of daily volume for futures trading, setting an all-time record of $8.69 billion, representing a 300% growth from last year’s figure.
Bitget is also the largest and fastest-growing crypto exchange when it comes to Copy Trading, having secured these accomplishments in just two years:
- 20K+ expert traders with a total revenue of $100M+
- 95K+ followers with a total revenue of $156M+
- Total asset invested in Bitget Copy Trade: $2.89B
- Total volume of Bitget Copy Trade: $145B
The comparison chart between BGB and other exchange tokens
These are the essential indicators for growth potential, which further predicts a bright future for BGB.
NVT (Network Value to Transaction) ratio or PE (Price Earning) ratio in cryptocurrency is used to evaluate an asset’s value by transaction volume. A low NVT implies that it is currently being valued cheaply for every unit of the BGB’s transaction volume. Considering that BGB’s market capitalisation is sitting at the bottom of the exchange token list, it could mean there is a high potential in the BGB value growth.
Overall, all the positive signals are leaning more to our side – the holders of BGB. Let’s avoid emotional investing and think clearly to give yourself the best chance of success.
Benefits of holding Bitget Token (BGB)
More than just a platform token, BGB is the core of a seamless and vibrant Web3 Ecosystem for all of your crypto holdings, community tokens, NFTs, Defi applications, and much more.
Want to become a BGB holder? Buy BGB now on Bitget!