6-step strategy to assess crypto growth: Finding sector trends in innovation cycle

3 min readJul 17, 2023

Sygnum’s Valuing crypto assets investment research report includes a six-step strategy to asses crypto growth. The second step of the strategy focuses on finding sector trends in the innovation cycle, which we are sharing with you here.

Download our Valuing crypto assets report to get the complete six-step strategy, a deep dive into institutional-grade frameworks for valuation of cryptocurrencies and more insights.

At this point, the crypto market is mature enough to be segmented into sectors. It is important to understand the drivers, challenges, trends and the fundamental value proposition of each sector when forecasting the growth opportunity.

It is also important to understand at what stage a new sector or niche currently stands.


The stage where most regard a new innovation too early, few understand it and many are sceptical whether it will scale is the time when investment leads to exceptional returns for patient money. Both the risks and the potential returns decline as the innovation cycle progresses.

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