January 18, 2026 - Sector Classification
The price movements of Bitcoin and Ethereum are correlated, and altcoins are also crucial. Price fluctuations are market behaviors, and we need to find the logic within these market behaviors.
Especially for those of us primarily trading altcoins, we need to understand that altcoins will inevitably decline in the long term, but we are trading on short-term trends. Short-term trading is driven by sentiment and involves quick in-and-out trades.
To capture short-term market opportunities, we need to build a solid foundation, understand sector classification, identify the leading and second-leading coins in each sector, and find related sectors.
Each sector needs to be manually categorized because the classification of sectors on any given platform is not very precise, which is one reason why a solid foundation is not established.
There are many sectors, such as lending, DEX, NFT, L1, L2, storage, AI, staking, DeFi, etc.
Each sector has coins with different main chains, and it's necessary to distinguish between them. Let's take the DEX sector as an example.
How to differentiate DEX sectors:
ASTER is built on the BSC chain.
AVNT is built on the BASE chain.
HYPE is its own public chain.
MET is built on the SOL chain.
MYX is built on the BSC chain.
Although they are all sectors, the chains are different. Each sector on each chain does the same thing, but there are more than one token.
Simply put, they are all grouped into the DEX sector, but when the DEX sector explodes, every coin will rise from time to time.
The DEX sector can be grouped into the ecosystem of the main chain. So when the main chain rises, the ecosystem rises as well. When the DEX sector becomes popular, it has a chance to rise together. Of course, it is still necessary to distinguish between the top and second-ranked tokens. For example, HYPE is the leader, and the second-ranked one is yet to be determined!
This is a complete method for differentiating a single sector. Sector classification is rather general. If you break it down further, you will find that it is not so simple!
I only work with altcoins, so my research on altcoins is more specialized. The confidence behind every decision comes from whether I have done enough basic research.






