Crypto sector indices research report

Sygnum crypto sector index series

Sygnum has leveraged its crypto community involvement and regulated digital asset banking experience to launch the first institutional, rules-based crypto sector indices framework.

The Sygnum crypto sector indices tracks the performance of 21,000 individual crypto protocols, and uses a rules-based system to filter and allocate into 7 core and 38 emerging crypto sectors. They enable investors to conduct in-depth analyses into core and emerging sector use cases, compare relative market capitalisation and performance as well as identify, rank and track leading protocols.

Crypto sector indices research report:

Crypto sector indices data report:

Sectors

Layer 1 foundations

Layer 1 is the common term used for the foundational blockchain protocols such as Bitcoin, Ethereum or Cardano. They were designed to create decentralised incorruptible money, and also serve as the foundational layer for various applications created through smart contracts deployed on these protocols. Download the sector snapshot

Layer 2 efficiency

Layer 2 protocols are secondary frameworks attached to the Layer 1 platforms to address scalability, throughput, transaction speed and transaction cost issues without interfering with the underlying protocols. They are referred to as Layer 2 as they sit on top of the Layer 1 blockchains, enhancing their efficiency. Download the sector snapshot

DeFi

DeFi encompasses projects that build decentralised versions of traditional financial sector activities such as borrowing and lending, trading, insurance, asset management, etc. They operate without a central counterparty and automatically process transactions by smart contracts. Download the sector snapshot

Web3

Web3 projects build the decentralised internet that allows users to control their data and user experience. It aims to improve on previous iterations of the internet by being censorship resistant, more reliable and offering interoperability across platforms. The projects include those creating the basic framework and infrastructure as well as user facing apps. Download the sector snapshot

Gaming

Blockchain-based gaming gives greater control to users relative to traditional gaming platforms via full ownership of the in-game items. The transactions inside the game are governed by smart contracts and offer more economically advantageous models for gamers such as “play-to-earn” and interoperability between games. Download the sector snapshot

Metaverse

Blockchain-based metaverse projects are building a decentralised version of a virtual reality world that provides an immersive and realistic experience to complement or replace real world interactions. The potential use cases are numerous and wide ranging, although most current crypto-based metaverse projects focus on entertainment and gaming. Download the sector snapshot

CeFi

CeFi (Centralised Finance) entities issue tokens to raise money in the crypto market and share the economics of their underlying business (e.g., centralised crypto exchanges) with tokenholders in some form. The projects themselves are not decentralised but rather traditional for-profit corporations. Download the sector snapshot

Index methodology

Crypto project numbers, types and use cases have grown exponentially, making sector selection an increasingly complex and technical challenge for investors. Sygnum’s sector index series helps navigating the increasingly diverse crypto asset universe by classifying projects into crypto sectors with distinct value drivers.

The Sygnum research indices track sectors and subsectors in the crypto market by tracking a broad universe of 21,000 protocols, and using a rules-based system to filter and allocate into 7 core and 38 emerging crypto sectors.

The selection and weighting is based on circulating market capitalisation. The minimum cutoff for inclusion is 0.01 percent of the total crypto market capitalisation. The qualifying projects are assigned to sectors and subsectors by Sygnum Research.

Sectors are eligible to be tracked if they have a minimum number of five constituents. The indices are rebalanced quarterly and calculated real time. Closing levels are fixed at midnight UTC. The indices are not designed to be investable.

Disclaimer

This document is purely for educational purposes and has been issued by Sygnum Group. It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a marketing communication. It does not constitute an offer or a recommendation to subscribe, purchase, sell or hold any security or financial instrument. It contains the opinions of Sygnum Group, as at the date of issue. These opinions and the information contained herein do not take into account an individual‘s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes personalized investment advice to any investor. Therefore, you must verify the above and all other information provided in the document or otherwise review it with your external advisors. Some investment products and services, including custody, may be subject to legal restrictions or may not be available worldwide on an unrestricted basis. The information and analysis contained herein are based on sources considered as reliable. Sygnum Group uses its best efforts to ensure the timeliness, accuracy, and comprehensiveness of the information contained in this document. Nevertheless, all information indicated herein may change without notice.

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