The cryptocurrency sector has remained a hot topic of debate for quite some time now. Experts and analyst around the globe are continuously analyzing the trends and patterns related to the digital coins. This is done to make sense of these patterns to help investors to make more informed business decisions besides helping stakeholders to take positive steps to reform the sector.

Sector-wise Analysis

A comprehensive analysis of the digital currencies put forth some interesting facts – despite being hundreds of cryptocurrencies available in the market, only a handful have dominated the industry in terms of market capitalization. Take, for instance, Bitcoin, which is the largest cryptocurrency by market cap, and it continues to dominate the market for years now. The coin alone dwarfs thousands of the digital coins and its dominance is unlikely to be challenged soon.

Now coming to the sector-wise comparison of the projects, applications are the most dominant category with the share of around 35-36% in the total projects. Cryptocurrencies and the financial sector come at a second and third place with the contribution of around 22% and 21% in the overall crypto space, respectively. We have already witnessed how rapidly the decentralized exchanges have grown and how these have attracted stakeholders and investors in large numbers. The projects in the protocol and infrastructure category are on the decline (sector has a share of 10-11%) and the trends predict that the next few years are going to be very competitive in the protocol segment. However, it is good from the development standpoint as it is going to help next-generation blockchain protocols to develop and flourish with new abilities and competitive features.

Financial Sector

An in-depth analysis of the financial sector suggests that the segment is going through a major overhaul with many new categories coming into the picture while the older ones are losing relevance among the customers. Wallets and exchanges, cards and payments, marketplaces, etc., are some of the emerging categories and sometimes it becomes difficult to delineate boundaries as these categories tend to mix with one another.

Another emerging sector which has caught the attention of experts and customers alike is the personal data protocols and storage infrastructure. What is really interesting here is the fact that the popularity of this segment is being driven mostly by the customers rather than the investors. The analysis also indicates the trend of enhanced movement from the private blockchain to the public blockchain protocols. The data suggests that in the last few years, the public blockchain protocols have made tremendous strides which have resulted in their huge popularity among the target market. That’s not to say that private blockchain has lost its relevance, but when you compare it with the growth of public blockchain, private blockchain simply pales into insignificance. We have also witnessed some growth in the cross-blockchain platforms and it will be interesting to witness how this category will perform in the future.

Application Category

In the applications segment, the conventional categories of the interest are related to virtual reality, social applications, and gaming. More importantly, Dapps which were initially touted to be a game-changer in the digital marketing, has witnessed a decrease in their number as well as popularity. On the contrary, though Dapps related to e-commerce and e-banking have shown positive traction among the customers.

Pulling it together

The overall crypto space is still experiencing positive organic growth and the sustainability of this growth rate depends upon the strength of the fundamentals on which the crypto industry today stands on. The widespread adoption of the digital coins and the blockchain technology hold the key for sustainable crypto future.  Policymakers and governments too have to play a key positive role if the crypto space has to maintain a positive outcome for the coming years.

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