Could crypto markets be analyzed a different way?
Perhaps one of the biggest challenges for crypto-assets today is the simplistic approach with which they are analyzed. They’re lumped together in a big list and ranked according to their coin market cap with every coin striving to be in the top 100.
While I think this may have been a good approach in the infancy of crypto, to better grasp true value and size of cryptos, I think we’ve reached a stage where there exists so many different crypto assets that one site maintainer or organization can’t really keep up with all of it. By comparison, there’s for example no entity trying to list and track every listed stock in the world, or at least this isn’t an interesting way to analyze stocks.
Having everything in one place does have benefits though, but I think those who run crypto sites need to begin to consider how they can improve in order to stay as inclusive as they’ve been in the past.
In thinking about this, I came up with the idea that instead of these sites to focus on individual assets they should focus on recognizing ecosystems. Most crypto assets will somehow be connected to other cryptos in one way or the other. They might be tokens on the same blockchain, they might share similar branding, they might be part of a chain of chains system or they might complement one another in a bigger system. The key takeaway should be to not have a strict approach in what constitutes an ecosystem, but rather to allow what wants to be that to be so, and to find key people to delegate responsibility to for each ecosystem.
I don’t exactly know how many different ecosystems that might be existing in the crypto world, but probably it is more than 200. What’s more important though is that it’s certainly less than the total number of assets and as such will become more easy to overview, once some kind of system for it is established.
Anyway, if the crypto sites can become more a common property for every ecosystem together, where each ecosystem is allowed to update itself with assets and information, the job of the site maintainers becomes instead to check that the ecosystem maintainers aren’t doing anything they shouldn’t be doing. It’d lead to a self-autonomous approach that would free up a lot of time and energy that probably would improve things for everyone instead of dealing with updating and verifying small details.
Also — perhaps even more importantly, this will open up much more possibilities for smaller assets in smaller ecosystems who may not be trying to aspire to dethrone Bitcoin or similar — but still add a lot of value in its own little corner of the crypto space. With increasingly complex and specialized uses this will only become more important and would probably help take away some focus from the simplistic value-go-up narrative.
I don’t have any plans to do anything like this, but wanted to share these thoughts with CMC, Coingecko and Coinpaprika or anyone who aspires to dethrone them.