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Charles Schwab’s $10t research arm says crypto value clusters in base networks like Bitcoin and Ethereum, not infrastructure, and urges a 3-layer lens for the marketCharles Schwab’s $10t research arm says crypto value clusters in base networks like Bitcoin and Ethereum, not infrastructure, and urges a 3-layer lens for the market

A new Charles Schwab report offers fresh insights into the precarious state of Bitcoin and Ethereum

2026/01/21 20:03

Charles Schwab’s $10t research arm says crypto value clusters in base networks like Bitcoin and Ethereum, not infrastructure, and urges a 3-layer lens for the market.

Summary

The total crypto market cap was about 3.169 trillion dollars as of 31 December 2025, with the largest layer‑1 blockchains’ native assets representing 78% of this value.
Schwab’s three defined sectors—foundational networks, infrastructure, and products—capture nearly 99% of total crypto market capitalization.
In a universe of 300+ cryptocurrencies with monthly active users and market caps above 1 million dollars, foundational networks show the highest incidence of market caps above 100 million dollars, while roughly twice as many product protocols as infrastructure protocols exceed that level.

Charles Schwab’s Center for Financial Research released a report highlighting Bitcoin and Ethereum as dominant assets in the cryptocurrency market.

The financial services firm, which manages $10 trillion in assets, published an analysis dividing the cryptocurrency market into three distinct sectors, showing that the majority of market capitalization remains concentrated in primary blockchain networks such as Bitcoin (BTC) and Ethereum (ETH).

The report structures the cryptocurrency ecosystem into three layers: core networks, infrastructure, and user-facing products. The analysis suggests investors evaluate cryptocurrency investments through these structural layers rather than treating digital assets as a single asset class.

Despite Bitcoin and Ethereum’s market dominance, the research indicates a substantial portion of sector wealth is allocated to stablecoins and emerging alternative cryptocurrencies, according to the report.

Charles Schwab offers new insights into the cryptocurrency market

Schwab analysts characterized cryptocurrencies as speculative and high-risk investments in the report’s conclusion. The analysis states that investors require comprehensive research to identify where fundamental value exists within the cryptocurrency market.

The report concludes that long-term value is more likely to be reflected in base-layer blockchain networks and widely adopted product protocols compared to infrastructure projects, according to the findings.

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