Charles Schwab's $10T Research: Crypto Value Concentrates in Base Networks Like Bitcoin and Ethereum

Source: Cryptonews Original Title: A new Charles Schwab report offers fresh insights into the precarious state of Bitcoin and Ethereum Original Link: 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).

Key Findings

The total crypto market cap was approximately $3.169 trillion as of December 31, 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, foundational networks show the highest incidence of market caps above $100 million, while roughly twice as many product protocols as infrastructure protocols exceed that level.

Market Structure Analysis

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.

Investment Implications

Schwab analysts characterized cryptocurrencies as speculative and high-risk investments. 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.