These Sectors of the Crypto Industry Are Most Profitable

Analysts at LongHash portal evaluated 349 cryptocurrency market tokens to identify areas with the highest return on investment (ROI) over the past year and 90 days.

The study used data from the Messari service. The authors note that they used median values ​​in calculating the total ROI in order to more clearly demonstrate the dynamics, while several out-of-order projects could prevent this. In addition, industries represented by five tokens and less were not taken into account.

Lending, a relatively small sector in which there are only 8 tokens, turned out to be the most successful for investors in both considered segments. It includes projects such as Maker, Nexo, Ripio Credit Network, Aave and Cred. ROI for the last year here was 75%, for 90 days — 15%.

Credit: LongHash

In addition to lending, projects in this area seek to provide their clients with the opportunity to decentralize investment in a wide range of products with different risk profiles and expected returns.

Exchange tokens (the “centralized exchanges” category) also showed a remarkable median ROI throughout the year, primarily thanks to Binance Coin. Recently, however, their results have not been so outstanding. Tokens of decentralized exchanges, on the other hand, do not please their holders. They have fallen more than 40% over the year and about 20% over the past 90 days.

It should be noted that, although the figures for the past 90 days can vary significantly from industry to industry, none of them showed a higher ROI than Bitcoin (140%) on an annual segment. In addition, only lending and centralized exchanges were able to surpass the Ethereum ROI of 40%. Other sectors, including application development, gambling, solutions for scaling and compatibility, are in a deep minus.

Author: Marko Vidrih

Featured image credit: Pixabay