The sectors of crypto

The equity track read sectors as businesses with shared sensitivities. Crypto's sectors are narratives with shared attention - a looser, faster, more reflexive version of the same idea, and reading them is reading which stories move together.

What crypto sectors are

• The majors: the largest coins, functioning as the market's beta - the flow layer's home, and the benchmark the rest is read against (module 2).
• The narrative baskets: groups of tokens sharing a thesis - a technology category, a use case - that rise and fall together as their story cycles; the sector, defined by narrative rather than industry.
• The instability: unlike equity sectors, crypto's baskets redraw each cycle - yesterday's dominant narrative is today's forgotten one, and the sector map is a snapshot of current attention, not a stable taxonomy.

Reading and risking by sector

The sector organises both analysis and risk. Analytically, a coin against its narrative basket (module 2's ratio) strips the sector's shared mood from its own story - the equity decomposition, crypto-flavoured. For risk, module 4's correlation-to-one applies within sectors most sharply: coins in one narrative basket are nearly one bet, so a 'diversified' book within a single narrative is concentrated exactly as an equity single-sector book was, only tighter. The sector is the unit at which crypto's already-high correlations peak.

The honest caveat

Crypto sector analysis is sold as rotation systems - 'capital rotates from majors to sectors to small caps' - and deserves the narrative-cycle scepticism of lesson 2: the rotations are real tendencies, not a clock, fitted to a short reflexive history and marketed with the winners shown. The honest use: know the current sectors, read coins against their baskets, size sectors as the correlated bets they are, and hold the map loosely because it redraws every cycle. Sectors are how crypto's crowd organises its attention - readable, riskable, and never as stable as the systems selling them claim.