Cryptocurrencies
SoSo Value Crypto Sector
Background
With the approval of Bitcoin spot ETFs, the digital asset industry is experiencing rapid expansion, and crypto investors are facing increasingly specialized challenges. These include how to leverage increasingly complex data to keep pace with market rotations and how to effectively allocate their portfolios for optimal returns. The "SoSoValue Crypto Sector" was created against this backdrop to provide investors with a clear, efficient way to track and evaluate the dynamics of the cryptocurrency market sectors. It aims to become an essential tool for investors to quickly and effectively allocate their portfolios. By segmenting and selecting mainstream digital assets in the crypto market, the "SoSoValue Crypto Sector" curates portfolios that reflect specific areas such as Public Chain (Layer1) and Decentralized Finance (DeFi). SoSoValue prioritizes an investment perspective in its selection process, focusing on criteria that are closer to investors' understanding and that facilitate quicker investment through "sector rotation". This helps users rapidly gain an overview of the overall crypto market and the condition of various sector tracks, and quickly identify potential tokens within each sector. The "SoSoValue Crypto Sector" aims to help investors discern market trends and provides a framework for better risk diversification and uncovering potential investment opportunities. Notably, this investment perspective-based classification method is somewhat subjective and will continue to be dynamically adjusted to better adapt to market changes. SoSoValue plans to open up some authority to adjust index compositions to the community, allowing users to participate in setting sector classification rules and selection adjustments.
Classification Framework
Currently, the SoSo Value sector classification has two levels: formal sectors (Sectors), containing 14 crypto sectors, and hot concepts (Highlight), the number of which will continue to iterate. Hot concepts are token lists under special attention by SoSo Value researchers, equivalent to an "innovation area" within formal sectors. Some hot concepts may be upgraded to formal sectors after internal evaluation if this sector continues to expand its influence. The current 14 formal crypto sectors on the website include:
BTC
ETH
Layer1
Layer2
DeFi
RWA
CeFi
Payment
Meme
DePIN
AI
GameFi
NFT
SocialFi
Data Standards
1) A single cryptocurrency can be categorized into different sectors; the chart below details the reasons for classifying the same project into two different sectors based on various factors.
2) Market Cap Share Calculation Method:
BTC Sector Market Share: BTC's market value as a proportion of the total market value of all cryptocurrencies on the SoSoValue platform.
ETH Sector Market Share: ETH's market value as a proportion of the total market value of all cryptocurrencies on the SoSoValue platform.
Other Sectors Market Share: Total market value of cryptocurrencies, excluding BTC and ETH, as a proportion of the total market value on the SoSoValue platform, multiplied by the market share of any sector within these other sectors (allowing for overlap). Note: Market share calculations for the Bitcoin (BTC) and Ethereum (ETH) sectors are based solely on the prices and market values of Bitcoin and Ethereum, respectively, excluding other derivatives in the sector.
3) Sector shares are updated daily at 00:00 UTC; sector price and market value changes are updated in real-time based on the prices and market values from 24 hours prior.4) Sector Market Value Change Calculation: Sector price change = (Current sector market value - Accumulated market value 24 hours prior) / Accumulated market value 24 hours prior * 100%.
Definitions and Internal Compositions
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