Analysis of The Functional Applications of Blockchain Technology
As Originally Published on altcoinbuzz.io
What are the different industries/ segments which are disrupted by Blockchain? What are the Top Projects in the area? What are the analyzed trends?
Assumptions:
- Even though there are several other indicators, to keep things simple, Market Cap has been kept as the primary indicator.
- Segment classification has been considered as shown in Coingecko.
- Some smaller segments have been clubbed under broader classifications.
- The Analysis Scope: Top 100 Projects by Market Cap.
- All numbers are in Million USD
Let us have a look at the analysis now:
Market Cap Overview – The actual Top Projects
Though we consider the projects in Top 100 by Market Cap as the biggest projects, Bitcoin and Ethereum together contribute about 65% of the Market Cap (Bitcoin – 55%, Ethereum – 10%). The Top 16 Projects contribute to 91% of the Total Top 100 Market Cap
This shows that Top 100 might not be always a right indicator and the Top 100 Bucket is only used for ease of representation.
Industry/ Segments covered by the Top 100 Projects
A broader classification gives us 16 segments which are impacted by Blockchain.
As on 23rd April 2019, these segments contribute to about 176 522 M USD Market Cap.
| Rank | Segment | Market Cap in M USD | %ge Market Cap |
| 1 | Cryptocurrency | $ 125 536 | 71.12% |
| 2 | Smart Contract Platform | $ 37 145 | 21.04% |
| 3 | Exchange Tokens | $ 4 447 | 2.52% |
| 4 | Stable coins | $ 2 711 | 1.54% |
| 5 | Token | $ 2 313 | 1.31% |
| 6 | Privacy Coin | $ 1 997 | 1.13% |
| 7 | Business Platform | $ 545 | 0.31% |
| 8 | Protocol | $ 493 | 0.28% |
| 9 | Infrastructure | $ 366 | 0.21% |
| 10 | Finance Banking | $ 277 | 0.16% |
| 11 | Storage | $ 185 | 0.10% |
| 12 | Entertainment | $ 159 | 0.09% |
| 13 | Business Services | $ 121 | 0.07% |
| 14 | Software | $ 92 | 0.05% |
| 15 | Big Data | $ 81 | 0.05% |
| 16 | Energy | $ 53 | 0.03% |
| Grand Total | $ 176 522 | 100% |
If we do a Pareto, we will see that the Top 6 segments contribute to about 98.66% of the Market Cap. Also, various segments are missing in the list. This shows that we are still in a very infant stage and Blockchain’s penetration and distribution across broader segments is still a Work in Progress.
Quick observations from the above graph:
- Cryptocurrencies still hold a majority of the Market Share.
- Smart Contract Platforms has steadied down in Market Cap, this is because, most of these projects are still under Development (Re-Development Phase), and none of them have been a stand-out game changer (yet). That being said this is the most important segment and once Development gathers speed and Problems fixed, this segment will see a massive upsurge.
- Exchange Tokens are the winners, with Binance Coin leading the way, reaching All-Time High during a depressing Bear Market.
- Stable coins are very important to gain mass adoption and seeing them in the Top 6 is a good assurance.
Let us now break down into each of these categories
Segments by Number of Projects
Smart Contract Platform has dethroned Cryptocurrencies in this area.
Now let us combine a Segments contribution to the Market Cap and Number of Projects per segment
| Segments | % Count of Projects in Top 100 | % Market Cap Share in Top 100 |
| Smart Contract Platform | 25.00% | 21.04% |
| Cryptocurrency | 22.00% | 71.12% |
| Token | 11.00% | 1.31% |
| Exchange Tokens | 7.00% | 2.52% |
| Privacy Coin | 6.00% | 1.13% |
| Stablecoins | 5.00% | 1.54% |
| Finance Banking | 5.00% | 0.16% |
| Infrastructure | 4.00% | 0.21% |
| Business Platform | 3.00% | 0.31% |
| Protocol | 3.00% | 0.28% |
| Entertainment | 2.00% | 0.09% |
| Business Services | 2.00% | 0.07% |
| Storage | 2.00% | 0.10% |
| Big Data | 1.00% | 0.05% |
| Software | 1.00% | 0.05% |
| Energy | 1.00% | 0.03% |
The above table is very interesting
- 22% of the Top 100 falls under ‘Cryptocurrency’ contributes to 71.12% of Marketshare
- However, 25% of the Top 100 falls under ‘Smart Contract’ Platform but contributes only to 21.04%. The high number of projects demonstrates the potential of this segment which is ready to Break Off any time soon.
- The meteoric rise of Exchange Tokens is to be noted.
We will now go through the top projects in each segment:
Segmentwise Top Projects
Cryptocurrency
The Cryptocurrency Segment is ruled by Bitcoin and XRP, together contributing 87% of the market share under this segment.
Total Market Cap: 125 536 M USD
Smart Contract Platform
The Smart Contract Segment is more diversified with Ethereum and EOS the biggest players contributing to about 64% of the Market Share under this segment.
Total Market Cap: 37 145 M USD
Exchange Tokens
Binance Coin is the Single Most important contributor in this segment, with a Market Cap ~6.5 times higher than its next immediate (Kucoin Shares)
Total Market Cap: 4 447 M USD
Stablecoins
Tether rules in this segment with 76% Market Share, 8 times bigger than its next immediate USDC
Total Market Cap: 2 711 M USD
Tokens
‘Tokens’ is a broad segment where multiple utilities have been clubbed.
Total Market Cap: 2 313 M USD
Privacy Coins
Total Market Cap: 1 997 M USD
Business Platforms
Total Market Cap: 545 M USD
Protocol
Total Market Cap: 493 M USD
Infrastructure
Total Market Cap: 366 M USD
Finance Banking
This segment is very evenly distributed among its 5 players
Total Market Cap: 277 M USD
The situation gets thinner in the next segments
Storage
Total Market Cap: 185 M USD
Entertainment
Total Market Cap: 159 M USD
Business Services
Total Market Cap: 121 M USD
Software
Total Market Cap: 92 M USD
Big Data
Total Market Cap: 81 M USD
Energy
Total Market Cap: 53 M USD
Key Takeaways
- The market is still immature and needs to go through many twists and turns before attaining maturity
- The Top 16 Projects contribute to 91% of the Total Top 100 Market Cap
- Cryptocurrencies and Smart Contract Platforms are still ruling, with other segments still in a very nascent stage. This proves that they still have some way to go before mass adoption.
- 25% by Volume of the Top 100 falls under ‘Smart Contract’ Platform but contributes only to 21.04% by Market Cap. The high number of projects demonstrates the potential of this segment which is ready to Break Off any time soon.
- Cryptocurrency Exchanges are gaining steam.
