The classification of cryptocurrencies is complex, which can be categorized into different types based on technical architecture, functional attributes, asset endorsement, and other dimensions. The following is a systematic overview of cryptocurrency classification and core differences based on the latest industry dynamics and classification standards (such as DAICS® Global Digital Asset Classification System) as of 2025:
I. Layered by technical architecture
1. Native coins (Coin)
Definition: Underlying tokens that run on independent blockchains, responsible for network fuel fees (Gas), staking, governance, and other core functions.
Representative:
Bitcoin (BTC)
Ethereum (ETH), Solana (SOL) and other public chain coins
Features: High security, but scalability is limited by the performance of the underlying chain (e.g., BTC can process 7 transactions per second).
2. Tokens (Token)
Definition: Assets issued on existing public chains (such as ETH, SOL), relying on underlying network resources.
Representative:
ERC20 Tokens (UNI, AAVE)
SPL Tokens (Bonk)
Features: Low development cost, but requires payment of native coins as Gas fees; flexible functionalities (such as governance, dividends).
II. Classification by functional use (DAICS® standard)
| Industry | Sector | Representative Coins | Core Functions
| Payments | Payments and Transactions | BTC, XRP, LTC | Cross-border transfers, value storage |
| | Stablecoins | USDT, USDC, DAI | Fiat-backed, low volatility trading medium |
| Infrastructure | Smart Contract Platforms | ETH, SOL, ADA | Supports DApp development and on-chain protocols |
| | Cross-chain Interoperability | DOT, ATOM | Multi-chain asset interoperability |
| Financial Services | DeFi lending/trading | AAVE, UNI, dYdX | Governance of decentralized financial protocols | RWA (Real Asset Tokenization) | ONDO, OM | Tokenization of traditional assets like treasury bonds, real estate on-chain |
| Technical Data | AI and Big Data | TAO, RNDR, FET | Decentralized computing market, AI model training |
| Media & Entertainment | Social/Community Coins | DOGE, PEPE, TRUMP | Community culture driven, high volatility |
III. Classification by asset attributes
1. Stablecoins
Anchor mechanism:
Fiat collateralized (USDT, USDC): 1:1 USD reserves, significant transparency differences;
Crypto-collateralized (DAI): Over-collateralized with ETH and other assets;
Algorithmic (potential high crash risk, such as lessons from UST).
Purpose: Trading hedging, DeFi liquidity pool base asset.
2. Meme Coins
Relies on community speculation (e.g., DOGE rose 40% in a month due to Musk's tweets), lacking fundamental support, and exhibiting high volatility.
3. RWA (Real World Asset) Tokens
Tokenizing traditional assets (government bonds, real estate) on-chain, compliance is key (e.g., ONDO manages 380 million USD in treasury bonds).
4. Governance Tokens
Gives holders voting rights in the protocol (e.g., UNI decides fee distribution), promoting DAO governance.
IV. Classification by strategic attributes (currency power dimension)
1. Virtual Currency (VC)
No sovereign endorsement, censorship-resistant (BTC, ETH), positioned as 'digital gold' or payment tools.
2. Cryptocurrencies (Crypto Assets)
Functionally driven (SOL, DeFi tokens), emphasizing on-chain governance and technological innovation.
3. Central Bank Digital Currency (CBDC)
Sovereign credit endorsement (Digital RMB eCNY), controllable anonymity, policy tool attributes.
4. Stablecoins (Stablecoin)
Fiat on-chain proxies (USDT acts as a 'dollar substitute'), bridging traditional and crypto finance.
V. Core differences and investment considerations
Technical independence: Native coins (BTC) have independent chains, while tokens (UNI) rely on other chain resources;
Value support: Stablecoins rely on fiat currency reserves, RWA tokens rely on physical assets, meme coins rely solely on community consensus;
Regulatory risk:
Privacy coins (XMR) face global regulatory crackdowns;
Compliant stablecoins (USDC) require regular audits.
Market cycle correlation:
During the Altseason, mid to small-cap coins saw significant increases (e.g., PENGU increased by 655% in a month), but 90% may go to zero.
VI. 2025 Trends and Allocation Recommendations
Key tracks: RWA (ONDO), AI + Blockchain (TAO), Modular Blockchain (TIA);
Position management: Single coin holdings ≤ 5%, prioritize projects with circulation > 30% and annual inflation < 35%;
Policy adaptation: China prohibits the trading of non-central bank digital currencies, but the pilot program for Digital RMB is expanding (transaction volume of 2.8 trillion).
The essence of investment is the balance between risk and innovation: within a compliant framework (such as Hong Kong's stablecoin pilot), seize certain opportunities in technological breakthroughs (ZKRollup expansion) and asset integration (RWA), while being wary of high leverage and 'shitcoin' traps.
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