Given that there are almost 20,000 different cryptocurrencies, it makes sense that establishing a strong crypto brand is a way to stand out from the crowd and create a loyal ecosystem of developers, users and investors.
So it was interesting to see, for the very first time, a study of how the world’s top cryptos rank as brands. The 2022 Brand Intimacy Study, from brand relations agency MBLM, analyzed how hundreds of popular brands form emotional connections with their customers and fans globally.
When it comes to crypto, the results might shock you. If you thought Bitcoin Where Ethereum were the best brands in crypto, you would be wrong. You would also be wrong if you chose a newcomer Solana. Instead, the best crypto brand in the world is gimbal. The report looked at over 600 brands in nearly 20 different industries. Cardano ranked #1 in the crypto industry and #26 overall.
What makes Cardano a great brand?
Since Cardano ranked as the top crypto brand, MBLM included a special industry feature in the report to show what makes this crypto so special. MBLM used artificial intelligence (AI) and big data tools to comb through all the comments people made about Cardano online and determined that the two keywords at the heart of the Cardano brand were “future” and “value”. The fire emoji was also a popular way to show love for Cardano.
According to the report, people think the future of Cardano is “exciting” because of all the innovations happening on the blockchain, including the ability to stake Cardano and the ability to participate in new decentralized finance platforms ( Challenge). And people didn’t seem too bothered that Cardano’s pace of development seems to be taking longer than many would like. In fact, a sample comment was, “Cardano is doing well.”
The link between brand ranking and market performance
If you are a Cardano investor, this should be great news. This means that the approach pioneered by Cardano co-founder Charles Hoskinson – a slow, methodical approach to software development that minimizes bugs and errors – is gaining traction with crypto developers. They trust the Cardano brand and are ready to rely on the blockchain platform. We’ve already seen a blossoming of decentralized apps following Cardano’s tech upgrade in 2021, and we may see something similar following this year’s upgrade (known as Vasil HardFork).
And there’s another reason to be excited: there seems to be a direct correlation between brand strength and market performance. As this is the first year that crypto has appeared in the study, there is no historical evidence from the crypto world. But there is plenty of evidence from the stock world, where MBLM says the top global brands also tend to outperform major stock indices. This makes intuitive sense, especially considering the brands at the top of the list this year: disney, You’re here, Appleand sony.
Going forward, Cardano will face abundant competition from other layer-1 blockchains, including Ethereum and Solana. Whichever blockchain turns out to be the long-term winner could be a direct function of brand loyalty. In short, brand loyalty is turning into a source of huge competitive advantage in the crypto world. One example is the brand-centric approach used by Solana, which is trying to become the Apple of the crypto world. But Solana ranked behind Cardano and Bitcoin in the brand’s report, which analyzed 21 different cryptos.
Is Cardano a long-term buy?
So, if you’ve been on the verge of investing in Cardano, just know that while Cardano may not have instant name recognition for Bitcoin, it has become a remarkably strong crypto brand. While one of the keywords used to describe Bitcoin in the report was “soaring,” the keywords for Cardano were “future” and “value.” And that’s what makes Cardano a long-term buy. It’s a crypto that you know will be there at the end when potentially tens of thousands of “get-rich-quick” cryptos are in the dustbin of history.
Dominique Basulto has positions in Bitcoin, Cardano and Ethereum. The Motley Fool has positions and recommends Bitcoin, Ethereum, and Solana. The Motley Fool has a disclosure policy.