Understanding Digital Asset Classification
The digital assets market has experienced rapid expansion, with new protocols and applications emerging constantly. As the asset class grows amid ongoing volatility, investors require robust tools to navigate this evolving landscape. MarketVector's Digital Asset Classification System (MVDACS) provides a structured framework to categorize cryptoassets, enabling better risk assessment and performance analysis.
Why Classification Matters
- Market Navigation: Helps investors identify sector trends and capitalize on emerging narratives
- Risk Management: Enables precise definition of asset risk profiles
- Performance Tracking: Facilitates comparison across crypto sectors and benchmarks
The MVDACS Framework
Developed in 2020, MVDACS employs a three-tier hierarchical structure:
Classification Levels
- Categories: Broad sector groupings (e.g., DeFi, Infrastructure)
- Industry Groups: Intermediate classifications within categories
- Industries: Specific protocol classifications based on primary business activity
Classification Methodology
- Quantitative + Qualitative Analysis: Combines protocol fundamentals with market perception
- Monthly Reviews: Regular updates to reflect technical changes and evolving use cases
- Economic Focus: Prioritizes primary business activities and end-user demand
Investment Applications
👉 Explore crypto investment strategies
Portfolio Benefits
- Sector Rotation: Identify outperforming segments for tactical allocation
- Alpha Generation: Enhance returns through targeted sector exposure
- Benchmarking: Compare portfolio composition against peers and indices
Index Offerings
MarketVector provides specialized indexes tracking major crypto sectors:
| Index Category | Description | Market Cap Requirement | ADTV Requirement |
|---|---|---|---|
| Broad Sector | Tracks full category performance | $250M | $10M |
| Leaders | Focuses on large, liquid assets | $1B | $25M |
Featured Leaders Indexes
- Decentralized Finance (MVDFLE): Top DeFi protocols
- Infrastructure Applications (MVIALE): Core blockchain infrastructure
- Smart Contract Platforms (MVSCLE): Leading smart contract ecosystems
👉 Discover crypto index solutions
Performance Metrics
Latest index performance (as of last close):
| Index | Symbol | Price | 1Y Range |
|---|---|---|---|
| DeFi Leaders | MVDFLE | 21.39 | 15.85-55.98 |
| Smart Contract Leaders | MVSCLE | 122.12 | 91.15-220.21 |
FAQ
Q: How often are classifications updated?
A: MarketVector conducts comprehensive monthly reviews of all classified assets.
Q: What qualifies an asset for inclusion?
A: Protocols must meet minimum market cap ($250M+) and demonstrate clear economic utility.
Q: Can classifications change over time?
A: Yes, protocols may be reclassified as their primary use cases evolve.
Q: How does this differ from traditional sector classifications?
A: MVDACS specifically addresses the unique characteristics of blockchain-native assets.
Q: Where can I access these classifications?
A: MarketVector publishes updated classifications through its research portal and index methodologies.