Coinspeaker Electric Capital Introduces Crypto Market Map to Track Crypto Evolution
Venture capital firm Electric Capital has attempted to simplify the complexities of the cryptocurrency industry by introducing a new tool. The tool which is dubbed “Crypto Market Map” provides a detailed overview of the burgeoning sector.
It categorizes projects into six different technological layers including core infrastructure and end-user applications. The other tech layers are scaling, interoperability, developer tools, and services and protocols.
Crypto Market Map Demystifies Crypto Complexities
Maria Shen, Electric Capital’s General Partner noted that the categorization is necessary to help users understand the interconnectedness of the different niches, companies, and projects. Furthermore, they are a reflection of how much the crypto sector has evolved over the years.
These layers highlight significant projects and their contributions to the crypto ecosystem. Therefore, only top projects that have industry or cultural relevance are listed on the Crypto Market Map. Notably, their eligibility to feature on the list is based on their capacity to meet the pre-selected criteria. This includes funding, developer activity, and market impact amongst others.
Precisely, the Crypto Market Map tracks more than 1,500 projects, providing a structured visualization of the digital asset sector. It offers a robust avenue for stakeholders to navigate the complex crypto market and help them understand the intricacies behind digital asset investments. At the end of the day, these stakeholders are well-fitted with the right information to make informed investment decisions.
“The goal of the Crypto Market Map is to help people understand and contextualize projects within crypto. It provides a clear visualization of the industry’s structure and the roles played by different companies and projects,” per a post on the tool’s website.
According to Electric Capital, the tool is designed with a focus on the crypto community. The Crypto Market Map is currently in the beta testing phase. Hence, its team of developers is open to receiving feedback that would improve the tool’s accuracy and comprehensiveness.
Crypto Categories See Expansion
Electric Capital published yesterday’s first market map in 2019 and this triggered a notable shift in the industry. Markedly, the Decentralized Finance (DeFi) niche saw a massive turnover, moving from $500 million in Total Value Locked (TVL) in 2019 to $88.6 billion as of today, according to DeFiLlama data. This category has expanded to include 394 projects, making it the largest category on the map.
Another major category is the Non-fungible token (NFT) niche which has registered a sizable surge in scaling and interoperability projects.
There is a general awareness amongst crypto companies to simplify their offerings to enthusiasts and other interested entities. Last week, Aptos unveiled a groundbreaking keyless wallet application called Aptos Connect. This tool leverages zero-knowledge proofs (ZK proofs) to verify user identities. It potentially revolutionizes how users interact with Decentralized Applications (dApps) and manage their digital assets.
It eliminates the need for private keys, seed phrases, hardware security modules, or multiparty computation networks.
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Electric Capital Introduces Crypto Market Map to Track Crypto Evolution