Digital Derivatives – Comparative Analysis of Crypto Sectors
Digital derivatives is a weekly newsletter bringing you the latest research, information and analytics from the cryptocurrency derivatives space brought to you by Delta Exchange. For last week's edition, click here.
Market Moves
- Bitcoin (BTC) - $9,300.90 (+2.63%)
- Ethereum (ETH) - $206.47 (-1.32%)
- Ripple (XRP) - $0.216 (-1.65%)
- Bitcoin Cash (BCH) - $245.70 (-1.36%)
- Litecoin (LTC) - $46.22 (-2.14%)
Derivatives Insights Comparative Analysis of Cryptocurrency Sectors
In this week’s newsletter we conduct a comparative analysis of the returns of various sectors in the cryptocurrency space looking at three horizons: 12 mths, YTD and post March 12th sell-off. The sectors we look at are as follows:
- Privacy tokens
- Exchange tokens
- DeFI tokens
- ETH killers
- POS coins
- POW coins
The highest returns on a 12 months basis are for exchange tokens, up77.90% for the year. The worst performing sector over 12 months are privacy tokens, down -43.53% over the previous 12 months. Exchange tokens have proven to be the most secure store of value across all sectors, with all exchange tokens up over 12 months except for BNB (-19.88%). Privacy tokens have taken a hit over the recent year due to increased exchange scrutiny and subsequently exchange delistings.
The highest returns on a YTD basis are for DeFI tokens, up 53.16% for the year. The worst performing sector in this year are privacy tokens again, up 9.65% in 2020. DeFI tokens have had a strong year with an increase in mainstream exposure in the run up to Ethereum 2.0 and are looking on track to grow further as we progress through 2020. The highest returns since the March 12th sell-off are exchange tokens, up 89.49% for the year. The worst performing sector since the March 12th sell-off are DeFi tokens, up 76.6% since March 12th. This is likely driven by the increase in trading volumes and media interest as of late. Here it is interesting to note LEO remaining relatively stable since March 12th, up 12.63% - the worst performing token since March 12th.
Privacy Tokens: Privacy tokens are cryptographic tokens built around extensive privacy features including e.g. anonymised transactions. Analysed tokens include Monero, Zcash, Komono, Verge and GRIN.
| 12 months | YTD | Post March 12th | |
| Monero - XMR | -10.57% | 31.90% | 102.95% |
| Zcash - ZEC | -24.80% | 56.80% | 88.22% |
| Komodo - KMO | -54.46% | 4.08% | 59.37 |
| Verge - XVG | -43.53% | 9.65% | 118.16% |
| GRIN - GRN | -73.50% | -44.21% | 43.24% |
| AVERAGE | -43.53% | 9.65% | 88.22 |
Of Privacy tokens, Monero has been the best-performing asset over the last 12 months, with strong performances on a YTD and 2 month basis to complement this. GRIN - the smallest and newest privacy coin of those analysed - is the worst-performing privacy token analysed, down -44.21% year to date. [caption id="attachment_24897" align="aligncenter" width="1280"]
The Privacy token sector has been the worst-performing sector on a 12 month and YTD basis.[/caption] Exchange Tokens Exchange tokens are digital assets issued by exchanges or trading platforms in the cryptocurrency space. Analysed exchange tokens include those issued by Binance, Bitfinex, FTX, Huobi and OKEx.
| 12 months | YTD | Post March 12th | |
| Binance - BNB | -19.88% | 21.16% | 97.61% |
| Bitfinex - LEO | 0.01% | 32.09% | 12.63% |
| FTX - FTT | 77.90% | 42.32% | 42.99% |
| Huobi - HB | 80.43% | 50.90% | 89.49% |
| OKEx - OKB | 226.24% | 99.23% | 110.48% |
| AVERAGE | 77.90% | 42.32% | 89.49% |
The best performing exchange token over the previous 12 months has been OKEx’s OKB, up 226.24% over the last 12 months. OKB has the best-performing exchange token across all 3 timeframes. Bitfinex’s LEO token has remained exceptionally stable over the last 12 months, sitting at a near identical price from a year ago. [caption id="attachment_24899" align="aligncenter" width="512"]
The Exchange token sector has been the best-performing sector over the last 12 months proving their stability through being backed by revenue-generating entities.[/caption] DeFi Tokens DeFI tokens are those tokens building decentralised financial networks on the Ethereum blockchain. Analysed tokens include those issued by Augur, 0x, Kyber Network, Gnosis and REN.
| 12 months | YTD | Post March 12th | |
| Augur - REP | -44.90% | 22.28% | 73.88% |
| 0x - ZRX | -9.43% | 33.33% | 64.38% |
| Kyber - KNC | 193.05% | 242.16% | 79.32% |
| Gnosis - GNO | 18.84% | 73.00% | 136.96% |
| Ren - REN | 164% | 106.25% | 104.33% |
| Maker - MKR | -36.88% | -22.89% | 56.29% |
| AVERAGE | 4.70% | 53.16% | 76.6% |
DeFi tokens have been the best-performing sector in 2020 on a YTD basis. This rise coincides with greater media interest as we approach Ethereum 2.0. ETH 2.0 is touted to have a significant impact on the efficiency and usability of DeFI tokens, for which reason investors are anticipating significant project improvements.
ETH Killers “ETH Killers” are tokens initially marketed as “new and improved” Ethereums, utilising smart contract technology to facilitate dapp development and decentralised finance innovation. Tokens analysed include EOS, Tezos, Cardano, Tron and Stellar.
| 12 months | YTD | Post March 12th | |
| EOS - EOS | -44.46% | 3.43% | 50.55% |
| Tezos - XTZ | 130.76% | 106.10% | 97.08% |
| Cardano - ADA | -23.79% | 48.93% | 42.02% |
| Tron - TRX | -35.74% | 20.30% | 88.23% |
| Stellar - XLM | -23.00% | 61.60% | 125.93% |
| ETH (reference) | 16.73% | 58.93% | 84.48% |
| AVERAGE | -23.79% | 48.93% | 88.23% |
The 12 month performance of ETH killers is being driven by a phenomenal year for Tezos, up 130.76% whilst all other analysed ETH killers are down a minimum of 23% over the past 12 months. All analysed tokens here are up on a YTD and 2-month basis.
POS Coins: Proof-of-Stake coins are those built around the innovative staking system for block validation within their networks. This is regarded as an extension to POW tokens, where token holdings are correlated with networking mining power. Those tokens analysed include Tezos, Stellar, NEO, Cosmos and Tron.
| 12 months | YTD | Post March 12th | |
| Tezos - XTZ | 130.76% | 106.10% | 97.08% |
| Stellar - XLM | -23.00% | 61.60% | 125.93% |
| NEO - NEO | 4.72% | 6.65% | 55.25% |
| Cosmos - ATOM | -40.79% | -37.47% | 62.80% |
| Tron - TRX | -35.74% | 20.30% | 88.23% |
| AVERAGE | -23.00% | 20.30% | 88.23% |
POS tokens have performed strongly across all analysed time-frames, with positive returns on a YTD and post-March 12th basis. Interesting developments are the 12 month performance of Tezos, up 130.76% due to increased media coverage and investor interest in roadmap developments. A second note is the YTD performance of Cosmos, down 37.47% whilst all other analysed tokens have positive returns in the same time frame.
POW Coins: POW coins are cryptographic assets which make us of the proof-of-work algorithm for block validation. In this system, miners compete against one another to complete network transactions, typically through energy-intensive mining set-ups. Analysed POW coins include Bitcoin, Ethereum, Bitcoin Cash, Litecoin and Monero.
| 12 months | YTD | Post March 12th | |
| Bitcoin - BTC | 58.45% | 29.38% | 87.30% |
| Ethereum - ETH | 16.73% | 58.93% | 84.48% |
| Bitcoin Cash - BCH | -13.66% | 19.60% | 36.98% |
| Litecoin - LTC | -37.63% | 10.59% | 67.27% |
| Monero - XMR | -10.57% | 31.90% | 102.95% |
| AVERAGE | -10.57 | 29.38% | 84.48% |
The POW sector is up across YTD and post-March 12th timeframes with Bitcoin and Ethereum leading the pack as the 2 POW tokens positive across 12 months, YTD and since March 12th. LTC - the 2nd best performing POW asset since the March 12th sell-off - is down 37.63% over the last 12 months and is the worst performing POW token since May 2019.
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Frequently Asked Questions (FAQ)
Q1: Which crypto sector performed best in 12 months?
Answer: The 2020 performance data here is fully obsolete. Through 2024-2025, Bitcoin led via spot ETF inflows and AI tokens ran strong. Meme coins had outsized windows too. Traders on Delta Exchange can access all major sector tokens through derivatives.
Q2: Why are privacy tokens underperforming?
Answer: Privacy tokens face structural headwinds. Binance delisted Monero in February 2024, and other exchanges have followed under AML pressure. EU Travel Rule requirements make it hard for regulated VASPs to support coins with obfuscated transaction histories, limiting their liquidity.
Q3: What are ETH killer tokens?
Answer: ETH killers are Layer 1 chains competing on speed and cost. Solana, Avalanche, and Sui are the main contenders. Ethereum's 2022 Merge and L2 scaling through Arbitrum and Base reinforced its dominance, though Solana mounted a serious challenge through 2024.
Q4: How do POS and POW coins differ in returns?
Answer: PoS coins generate native staking yield on top of price appreciation. PoW coins like Bitcoin have no native yield but benefit from halving-driven scarcity. Post-Merge, Ethereum turns deflationary during high-activity periods via EIP-1559 fee burns, adding a supply-reduction dynamic.
Q5: Which exchange token performed best overall?
Answer: BNB has stayed among the strongest exchange tokens, supported by Binance's volume and quarterly burns. The 2023 DOJ settlement and CZ's four-month prison sentence in 2024 weighed on it, but BNB recovered through 2025 as Binance restructured operations.
Q6: How did crypto sectors recover after the March 12th sell-off?
Answer: BTC dropped roughly 50% in 24 hours on March 12, 2020 as COVID panic hit markets. Fed stimulus and DeFi summer growth drove recovery. Most sectors surpassed pre-crash highs by year-end. Delta Exchange traders used derivatives to navigate the volatility.