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01 April 2020

Monthly Sector Analysis: An Update on Performance

Daniel Kukan

Daniel Kukan

Senior Trader at Crypto Broker AG

About the author

The exchange FTX rebalanced their Alt/Mid/Shit Indices on March 27, 2020. Also, a 20% weight cap for a single coin was introduced in each of the indices. In addition to that of the quarterly rebalancing, any further amendments will be published 24 hours prior.

Alt Index
The coins still within the Alt Index are BCH, BNB, BSV, EOS, ETH, LTC, and XRP. Leo and TRX have been added to the Mid Index.

New Coins: Mid Index
All three major exchange coins LEO, OKB, and HT have been consolidated in the Mid Index. The constituent number within the index remains the same with 24.

New Coins: Shit Index
The index constituents were reduced from 58 to 51. New and interesting coins with a decent yearly performance were added.

HBAR (Hedera Hashgraph) has performed 220% since the beginning of the year. Hedera is a public ledger built using hashgraph consensus. The launch in 2018 was a private sale with several funding rounds, and the genesis block was created on September 16, 2019. The investor base is global. Outstanding supply is capped, where founders and the project own 80%. A total of 17.5% is in the hands of investors, and the remaining 2.5% are used for airdrops and rewards.

Another prominent coin, BEAM, has also been included. BEAM was initially an experiment, with Mimblewimble offering superior base layer scalability by reducing the amount of data. It is a proof-of-work coin with a disinflationary emission schedule. The genesis block was created in January 2019, and the first hard fork was successfully carried out on August 15, 2019. The organisation is located in Singapore and Israel, and there are investors in Switzerland as well. The yearly performance of BEAM is minus 49.5%.

TOMO (Tomo Chain) is a scalability layer of Ethereum with a low transaction fee, fast confirmation time, and double validation advantages. It envisions an ecosystem of different DApps running on the Tomo Chain blockchain infrastructure. The total supply is capped, where founders and the project own 28%, and 17% are used for airdrops and rewards. Investors in Asia, Europe, and the US own 55%. Yearly performance of the coin is minus 42%.

Winning coins

Losing coins

Platform
This sector has the most constituents. Some of them appear in the Top 10 list, and others are also part of the losing coins’ list. If you look at the quarterly performance numbers, you can see that more coins are in negative territory, but a few of them are performing very well, ensuring that the sector has only lost 1.43% versus the index. Overall, the platform sector has performed fairly neutrally against the remaining sectors.

SoV
This is a well-diversified sector with a normal distribution of performances. However, it is a bit of a surprise to see Bitcoin Satoshis Vision as the board leader. This coin is clearly outperforming its “big brother” Bitcoin Cash.

Privacy
This sector has lost some of its shine since the beginning of the year. It is clearly underperforming the index, but also the benchmark BTC$, which was down 10% in Q1 2020.

Payment
Another fairly balanced sector with a rather normal distribution in terms of single constituent performances.

Others & File Storage
The two sectors that performed the worst had a really bad first quarter. Most of the coins were down double-digit figures, except for the SC coin. Maybe this has to do with the fact that their supply curve (inflation) flattened significantly after the end of 2019.

Interoperability
The main driver of this sector’s performance was ICX.

Exchange
This sector was the absolute winner in Q1 2019. The overall performance was 42% better compared to the Index. KNC (Kyber Network) has performed 140% since the beginning of the year. Kyber Network is an Ethereum-based decentralised exchange focused on the rapid onchain execution of transactions. KNC was listed on Coinbase in February 2019, and announced that it would implement staking and upgrading to a DAO in Q2 2020. The coin has surpassed over $100 million in trading volume so far. In general, the exchange coins seem to be a stable investment in rough market conditions, as the traded volume of the exchanges is constantly rising and exchanges are granting reduced transactions fees when using their coins.

IoT

Entertainment

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