Goldman discovered that the cryptocurrency market has experienced a 750% increase in value since the beginning of 2019. S3studio/Getty ImagesGoldman Sachs discovered that proof-of-stake tokens have outperformed exchange coins since 2019.Analysts at the bank monitor crypto segments in order to identify the most lucrative features.According to Goldman, the entire cryptocurrency market has returned around 750% over the past year.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Since 2019, Goldman Sachs found that cryptocurrency assets built on "proof of-stake" networks and those launched by exchanges have outperformed the wider crypto market.In a note published Wednesday by Goldman Sachs analysts, exchange tokens (such as Binance Coin and FTX Token) have outperformed currencies like bitcoin or decentralized financial tokens such uniswap in the past year.Zach Pandl, Isabelle Rosenberg and Isabelle Rosenberg also concluded that tokens based upon proof-of–stake mechanisms outperformed proof–of-work coins such as bitcoin.Proof-of-stake allows users to "stake" their coins to secure a cryptocurrency network. This allows them to verify transactions and receive more coins.Proof-of work - which is the current system used by bitcoin and ether - involves miners who use huge amounts of computing power and solve complicated problems in order to earn coins and verify transactions.Continue reading: Ether to $14,000 and doge above $1: A CEO of a payment platform explains why ethereum's upgrades could cause a rise in the prices of multiple cryptos. He also shares his predictions for bitcoin and XRP.Pandl and Rosenberg stated that monitoring the crypto market segments could help investors determine which features they are most interested in, as well the potential for practical applications.Some other key findings include:Since the beginning of 2019, the cryptocurrency market has returned around 750%.Bitcoin has outperformed the wider market by gaining only 500% while ether has shot up to 2,000%.Since 2019, privacy-focused tokens like monero have outperformed the broad marketplace.Analysts didn't provide any details about the reasons why some tokens are performing better than others. Rosenberg and Pandl said that cryptocurrencies could be considered network technology and that valuations can rise with network growth as long as they aren't driven by speculation.There has been excitement over proof-of–stake networks. These allow you to earn coins without having to run expensive, energy-consuming mining machines.The proof-of-stake system will be implemented by the ethereum network in early 2022. JPMorgan stated that the switch could make staking a $40 billion industry by 2025.
