In this report, we will analyze two crypto industries, Identity & Social Relationship and Culture, using the CICS system. CICS is a comprehensive classification system that includes 5 crypto domains, 15 crypto categories, 40 crypto subcategories, and 79 crypto categories.
By applying the CICS system, we will examine the similarities and differences between these two industries and explore their potential and challenges. Both of these industries leverage blockchain technology to create new value, payment methods, and social and cultural forms, but they face different regulatory, technological, safety, and social challenges. Let’s delve deeper into the analysis of these two industries.
This report discusses the two industries together because they share many commonalities and even have similar development trends. The Identity & Social Relationship and Culture crypto industries both utilize blockchain technology to create new value and payment methods, as well as new social and cultural forms. They involve communication, collaboration, creation, and expression among people, reflecting the diversity and inclusivity of the crypto community.
Both industries also face varying degrees of regulatory, technological, safety, and social challenges. For instance, the Identity & Social Relationship industry needs to address issues such as privacy, security, interoperability, and authentication of digital identities. On the other hand, the Culture industry needs to tackle concerns such as copyright, intellectual property, content quality, and value assessment.
The Culture industry encompasses Entertainment, Sociality, Media, and Art, including 44 crypto projects, while the Identity & Social Relationship industry includes Identity and Social Relationships, comprising three crypto projects. Although they differ in market size, growth rate, competitiveness, and potential, both industries are integral parts of the cryptocurrency market.
Market Size and Growth Rate
According to data provided by InCre, as of April 6, 2023, the total market capitalization of these two industries was $68.9 billion and $344.6 billion, accounting for 5.6% and 28.1% of the total market capitalization of the crypto market, respectively.
The prices of projects in these two industries also fluctuate to varying degrees, with some projects performing well, such as LUNC, CHZ, SAND, BIT, and others performing poorly, such as DOGE, SHIB, APE, and others.
The market size of the Identity & Social Relationship industry is relatively small, but it has a high growth rate. According to a report by Mordor Intelligence, the market size of this industry was $8.26 billion in 2020, and it is expected to grow at a compound annual growth rate of 18.9% during 2021–2026, reaching $25.44 billion by 2026.
The industry has low competitiveness and is mainly dominated by a few projects, such as Ethereum Name Service (ENS), Ontology (ONT), Steem (STEEM), and others. The industry has great potential because digital identity and social relationships are important areas of blockchain technology application, which can improve users’ privacy, security, trust, and convenience. The industry’s contribution and impact on the overall cryptocurrency market is relatively small, as its market share is less than 1%.
The Culture industry has a relatively large market size and stable growth rate. According to a report by Emergen Research, the market size of this industry was $191.9 billion in 2020, and it is expected to grow at a compound annual growth rate of 11.1% during 2021–2028, reaching $400.7 billion by 2028.
The industry has high competitiveness and covers multiple sub-sectors and projects, such as entertainment, sociality, media, art, and others. The industry also has great potential because the cultural industry is an important area where blockchain technology creates new value and forms, which can increase user participation, creativity, and profitability. The industry’s contribution and impact on the overall cryptocurrency market is significant, as its market share exceeds 20%.
Index Comparison (Value & Trend)
InCre’s index comparison feature offers a comprehensive analysis of the two industries’ relationship through the ‘create index by CICS’ and ‘index comparison analysis’ functions. The chart comparison reveals that the CICS_ID_Social (IDSOCIAL3) index has a more extended history compared to the CICS_Culture44 (CULTURE44) index.
Examining the trend of the CICS_ID_Social (IDSOCIAL3) index, we observe that it has been declining since its inception in November 2021. However, there has been a recent resurgence since the beginning of 2023, with the index value rising from 25.62 to 42.26. This impressive performance suggests that the Identity and Social Industry is making a recovery in 2023, which is attributable to the general crypto industry’s upswing.
On the other hand, the CICS_Culture44 (CULTURE44) index is relatively new, making it challenging to draw any conclusions regarding its trend. Nonetheless, the volatility of this index is high, signaling a high-risk investment. The Culture Industry consists of several GameFi and NFT projects, which are typically high-risk ventures with significant money inflows and outflows. As such, investors should be cautious when considering these projects and take into account the associated risks.
Both the Identity & Social Relationship and Culture crypto industries are important areas where blockchain technology can create new value, payment methods, and social and cultural forms. These industries face different regulatory, technological, safety, and social challenges.
The Identity & Social Relationship industry has a relatively small market size, but it has a high growth rate and great potential. The Culture industry has a relatively large market size, stable growth rate, and high competitiveness, but it also has a high investment risk due to the volatility of its projects.
The analysis of these two industries using the CICS system helps us to understand the potential and challenges of the crypto market better.