The world of cryptocurrency continues to expand at a rapid pace, introducing new assets, platforms, and use cases almost daily. With this growth comes complexity—investors, analysts, and regulators often struggle to categorize and understand the vast ecosystem in a consistent way. To address this challenge, 21Shares and CoinGecko, two influential players in the crypto space, have joined forces to introduce the Global Crypto Classification Standard—a comprehensive framework designed to bring clarity and structure to the digital asset landscape.
This initiative marks the first phase of a strategic partnership between 21Shares, the world’s largest issuer of cryptocurrency exchange-traded products (ETPs), and CoinGecko, the leading independent crypto data aggregator. The report lays the foundation for a universal classification model that enables better comparison, analysis, and understanding of cryptoassets across markets and jurisdictions.
A Need for Standardization in Crypto
Unlike traditional financial instruments such as stocks or bonds, which follow well-established categorization systems, cryptocurrencies vary widely in function, technology, and purpose. From utility tokens to governance mechanisms and decentralized infrastructure protocols, the lack of a unified classification system has made it difficult for stakeholders to assess risk, performance, and innovation across projects.
👉 Discover how structured crypto frameworks are shaping smarter investments.
The new Global Crypto Classification Standard aims to solve this problem by introducing a three-tier hierarchical model that organizes cryptoassets based on their core characteristics and real-world applications.
The Three-Level Classification Framework
The methodology is built on three distinct levels, each offering deeper granularity into an asset’s role within the broader ecosystem.
Level 1: Crypto Stack
This top-level categorization defines the fundamental technological layer of a cryptoasset. It answers the question: What is the primary function of this blockchain or protocol?
- Cryptocurrencies: Digital money designed for peer-to-peer transactions (e.g., Bitcoin).
- Smart Contract Platforms: Blockchains enabling programmable logic and decentralized applications (e.g., Ethereum).
- Decentralized Applications (dApps): Application-specific protocols built on top of smart contract platforms (e.g., Uniswap).
Level 2: Market Mapping by Sectors and Industries
At this level, assets are grouped by their market focus. This dual classification separates broad economic sectors from specific industries they serve.
- Sectors: Include major thematic areas like Decentralized Finance (DeFi), Infrastructure, Metaverse, and Web3.
- Industries: Drill down further into functional niches such as Payment Platforms, Developer Tooling, Credit/Lending, and Decentralized Exchanges (DEXs).
This structure allows investors to identify trends across macro-themes while also analyzing competitive dynamics within narrower verticals.
Level 3: Taxonomy of Cryptoassets
The most granular level focuses on token type and economic model. Each asset is classified according to its utility and governance role:
- Cryptocurrency: Native assets used for payments or value transfer.
- Staked Currency: Tokens locked to secure proof-of-stake networks.
- Governance Token: Assets granting voting rights in decentralized autonomous organizations (DAOs).
- Additional types include Utility Tokens, Asset-Backed Tokens, and Synthetic Assets.
Real-World Application: Classifying Bitcoin and Uniswap
To illustrate the framework in action, the report applies the classification model to two prominent assets:
| Crypto Asset | Ticker | Level 1: Crypto Stack | Level 2A: Sector | Level 2B: Industry | Level 3: Token Taxonomy |
|---|---|---|---|---|---|
| Bitcoin | BTC | Cryptocurrencies | Infrastructure | Payments | Cryptocurrency |
| Uniswap | UNI | Decentralized Application (dApp) | Decentralized Finance (DeFi) | Decentralized Exchanges (DEXs) | Governance Token |
This side-by-side comparison highlights how two vastly different projects can be systematically evaluated using a common language—enabling clearer investment decisions and regulatory oversight.
Extending the Framework: Top 100 Crypto Assets Analysis
Beyond conceptual design, 21Shares and CoinGecko have already applied this classification system to analyze the Top 100 cryptoassets by market capitalization. The resulting dataset offers valuable insights into sector distribution, innovation trends, and emerging use cases.
For example:
- Over 40% of top assets fall under the DeFi sector, reflecting growing demand for decentralized financial services.
- Infrastructure remains a dominant category at Level 1, underscoring the importance of scalable, secure base layers.
- Governance tokens represent a rising share of high-market-cap projects, indicating increased decentralization efforts.
👉 See how classification drives transparency in high-potential crypto sectors.
This full classification will be publicly accessible on CoinGecko’s platform by summer 2023, providing users with enhanced filtering, research tools, and educational resources.
Expert Perspectives on the Initiative
Eliézer Ndinga, Director of Research at 21.co, emphasized the importance of standardization in a maturing market:
"Crypto is still in its early days—but having a consistent way to classify assets is essential. Investors need to see both what connects these projects and what sets them apart. Partnering with CoinGecko made sense because of their independence and reputation as a trusted source for discovering new crypto innovations."
Bobby Ong, COO and co-founder of CoinGecko, echoed this sentiment:
"Systematically ranking and classifying cryptoassets aligns perfectly with our mission. We’re proud to collaborate with 21Shares to deliver a robust framework that empowers global users as the industry evolves."
Why This Matters for Investors and Regulators
Standardized classification isn’t just an academic exercise—it has real-world implications.
For investors, it enables:
- Better portfolio diversification across sectors and layers.
- Improved risk assessment through comparative analysis.
- Easier identification of thematic investment opportunities (e.g., DeFi, Web3 infrastructure).
For regulators, it provides:
- A structured way to define asset types for compliance purposes.
- Clearer distinctions between securities, commodities, and utility tokens.
- Support for policy development based on data-driven categorization.
As global regulators move toward clearer crypto frameworks—such as MiCA in Europe—this classification model could serve as a reference point for consistent regulation across borders.
👉 Learn how standardized models support compliant crypto growth.
Frequently Asked Questions (FAQ)
Q: What is the Global Crypto Classification Standard?
A: It’s a three-level framework developed by 21Shares and CoinGecko to categorize cryptoassets based on their technology stack, market sector, and token type—bringing consistency to how digital assets are analyzed.
Q: Why do we need a crypto classification system?
A: Because cryptoassets vary widely in function and design. A standardized model helps investors compare projects, regulators define rules, and developers innovate within clear categories.
Q: How will this classification be used in practice?
A: The framework is already being applied to rank the top 100 cryptoassets. It will be integrated into CoinGecko’s platform, offering users advanced filters and insights.
Q: Who benefits from this standard?
A: Investors gain clearer analytics; regulators get a structured reference; developers receive market visibility; and newcomers find easier entry points into the ecosystem.
Q: Is this classification system mandatory?
A: No—it’s a voluntary framework intended to guide industry practices. However, its adoption by major platforms like CoinGecko increases its influence.
Q: Will the model evolve over time?
A: Yes. As new blockchain use cases emerge—such as AI-integrated protocols or privacy networks—the classification will be updated to reflect technological advancements.
Core Keywords
- Global Crypto Classification Standard
- Cryptocurrency classification framework
- 21Shares CoinGecko partnership
- Cryptoasset taxonomy
- DeFi token classification
- Blockchain sector mapping
- Digital asset standardization
- Crypto investment framework
By establishing a shared language for evaluating digital assets, this initiative represents a significant step toward institutional maturity in the crypto industry. As adoption grows, so too does the need for clarity—and this standard delivers just that.