Charles Schwab’s research unit, part of a firm overseeing $10 trillion in assets, says crypto market value remains concentrated in base networks such as Bitcoin and Ethereum rather than in infrastructure projects. The report breaks the market into three segments—foundational networks, infrastructure, and products—and argues that digital assets should be evaluated through that structure instead of being treated as one uniform asset class.
As of December 31, 2025, total crypto market capitalization stood at about $3.169 trillion. Native assets of the largest layer-1 blockchains accounted for 78% of that figure. Schwab said its three sectors—foundational networks, infrastructure, and products—collectively represent nearly 99% of the entire crypto market cap, pointing to a heavy concentration of value in a limited set of categories.
Base networks lead under Schwab’s three-part framework
In the report’s structure, foundational networks refer to underlying blockchains such as Bitcoin and Ethereum, infrastructure covers the projects supporting on-chain ecosystems, and products refer to protocols facing end users. The analysts said this layered view offers a clearer way to assess crypto investments because valuation patterns differ sharply across the market, even when assets are grouped under the same broad crypto label.
Across a universe of more than 300 cryptocurrencies with monthly active users and market capitalizations above $1 million, foundational networks had the highest incidence of projects valued above $100 million. Schwab also found that roughly twice as many product protocols as infrastructure protocols crossed that threshold. The gap suggests infrastructure may be essential to the ecosystem while still lagging in market cap concentration.
Stablecoins and alternative tokens still hold a share of sector wealth
The report said that even with Bitcoin and Ethereum dominating the market, a meaningful share of crypto wealth is still allocated to stablecoins and newer alternative cryptocurrencies. Schwab’s conclusion was that long-term value is more likely to be reflected in base-layer blockchain networks and widely adopted product protocols than in infrastructure projects.
Schwab analysts described cryptocurrencies as speculative and high-risk investments in the report’s closing section. They said investors need deeper research to determine where fundamental value sits in the market, rather than relying on broad sector narratives alone.