The focus this year may have been on the block reward halving by Bitcoin but the real story is the resilience by alt coins. In fact, MVIS 100 small cap and large cap indices have been trading in lockstep for much of the year and at the time of writing, the small cap index was actually marginally better than its large cap peer (+40% year-to-date vs +32%). The growth of Proof of Stake (PoS) offerings, together with the need to hedge exposure, where choice is limited to Bitcoin’s derivatives market, may continue to drive capital into alt coins.

MVIS CryptoCompare Digital Assets 100 Large-Cap vs.
MVIS CryptoCompare Digital Assets 100 Small-Cap

Source: MV Index Solutions GmbH. Data as of 16 June 2020.

About the Author:

Denis Vinokourov has close to 10 years of experience in traditional markets and a front office facing role/macro desk. He transitioned into digital assets market in late 2017 and currently serve as the head of research at BEQUANT, a cryptocurrency exchange & institutional prime brokerage.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions GmbH or its affiliates.