deen

06 August 2020

Monthly Sector Analysis: altcoins gained back some territory

Patrick Heusser

Patrick Heusser

Senior Trader bei Crypto Broker AG

Über den Autor

In terms of USD performance, all major FTX Indices (ALT/MID/SHIT) performed very well throughout the entire month: ALT Index +36% – MID Index + 28% – SHIT INDEX + 19%.

All ALT constituents (9 coins) showed a positive performance. Within the MID constituents (24 coins), performance was mixed: 17 coins performed positively, whereas seven coins were negative. The performance of SHIT constituents (50 coins) was also very mixed. Only 24 coins showed a negative performance; 36 coins are up. On the graphs below, you will find more $ performance values for each coin within the applicable sector.

During the month of July 2020, the altcoins gained back some territory and outperformed the small-cap coins significantly.

Comparing the performance of some coins against BTC$, the market saw a more diverse and interesting picture. ALT coins outperformed BTC$ by approx. 13%, whereas SHIT coins only outperformed BTC$ by 8%, and SHIT coins underperformed BTC$ by minus 10%.

Below you will find the performance chart of the sectors relative to the total overall index:

The winning sectors relative to the index were Store of Value (SoV), Privacy, Platform, Payment, and the Internet of Things (IoT). The losing sectors were Interoperability, File Storage, Exchange, Entertainment, and Others.

Store of Value (SoV)

 

 

 

 

 

The large-cap coins within the ALT Index and SoV sector outperformed.

Privacy

The performance within the Privacy sector has calmed down a bit but remains amongst the sector winners. Having had a very good run since the beginning of the year, the overall performance within the sector is more balanced and no coins really stand out above the rest.

An interesting coin is ZEN (Horizon), which is a privacy-oriented cryptocurrency with sidechains that enable anyone to build privacy-based applications. The general consensus is Proof-of-Work with a Block Time of 2.5 minutes and a Block Reward of 12.5. The next halving will be in November 2020.

Platform

Of these coins, ETH performed remarkably and outperformed the majority by far. The overall reason for this is definitively the ongoing hype and development in the DeFi and Smart Contract space. A certain amount of market volatility is to be expected, but in the end not many coins underperformed substantially.

Payment

XRP belongs to the winners in the sector and to the coins that outperformed the market.

Internet of Things

In the past, the IoT sector has regularly underperformed. IOTA is the absolute winner in this sector. IOTA definitively has the larger community and appears to also have a greater presence, contributing with both news and opinions on social media.

Interoperability

Some very popular coins, e.g. ATOM and LINK are in the Interoperability sector.

File Storage

File Storage performance was neutral.

Exchange

After BNB’s underperformance during the first half of the year, it managed to outperform its peers this month. The exchange coins should be in a favourable position because the volume of transactions on the exchanges is constantly rising.

Entertainment

The entertainment sector hype has eased down a bit.

Others

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