‘Investable universe’ of crypto is narrowing: NYDIG

CoinTelegraph

by Jesse Coghlan

February 23, 2026

AI-Generated Deep Dive Summary

The cryptocurrency industry is undergoing a significant shift as its "investable universe" begins to narrow, according to NYDIG. The company's research lead, Greg Cipolaro, highlights that only a limited number of crypto applications are currently attracting investor interest, particularly those that integrate traditional financial products with blockchain technology. This narrowing focus suggests a maturation of the sector, where speculative projects and overambitious "web3" initiatives are losing traction in favor of practical, scalable solutions. Cipolaro identifies several key areas that remain attractive to investors: Bitcoin (BTC), tokenized assets, stablecoins, certain decentralized finance (DeFi) infrastructure, and a select group of general-purpose blockchains like Ethereum. Beyond these specific use cases, the potential for large-scale blockchain applications appears more limited than previously anticipated, according to the report. This shift reflects a growing recognition among investors that not all blockchain projects can achieve widespread adoption or deliver significant returns. The narrowing investable universe is both a challenge and an opportunity for the crypto sector. While it may signal a reduction in speculative activity, it also underscores the emergence of long-term winners that align with traditional financial systems and have proven their viability. This focus on practical applications could help stabilize the industry and attract more institutional investors, who are often cautious about overly ambitious projects. For readers interested in crypto, this report highlights the importance of staying informed about market shifts and prioritizing investments in areas with demonstrated value propositions. As the sector evolves, the emphasis on blockchain solutions that enhance traditional finance rather than disrupt it entirely may shape the future trajectory of the industry.

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Originally published on CoinTelegraph on 2/23/2026