05 November 2020

Monthly Sector Analysis: Keeping watch on the Exchange sector and altcoins

Patrick Heusser

Patrick Heusser

Head of Trading at Crypto Broker AG

About the author

Over the past few months, both the under- and overperforming sectors have been swinging back and forth. SoV and Privacy showed some nice performance relative to the index versus Others, File Storage, and Exchange.

Overall, the index versus bitcoin is underperforming greatly. Altcoins are being crushed versus bitcoin. Over the coming months, we will keep a close eye on the Exchange sector. Due to tightening regulations (especially in Asia), we believe this sector is at risk to the downside.


The PayPal effect is ensuring that this sector performs well. LTC and BCH were the big drivers in this sector. The price of these coins increased during the second wave, which is very similar to what happened with PayPal when people realised what the platform could offer them.


The only coin helping this sector is XMR (Monero). Overall, we expect more flow to come into this sector with regulations around the globe getting tighter. Some players in the crypto market do not like this development and are starting to move into “the dark”.


The smaller coins in this sector have been absolutely hammered, but the heavyweights have managed to a certain extent to keep the losses in check. Some of the coins that are under water are closely linked to the DeFi space, which had a brutal month.


This sector is ticking along with only a few outperformers helping it to keep their heads above water.


This sector is worth mentioning on account of its outperformance, which is due mainly to one coin: LINK. The other coins suffered due to the DeFi consolidation.


We already briefly mentioned this last sector at the beginning of our report. Most of the coins are underperforming and this is likely to continue for many months to come.

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