There is no denying that there are many cryptocurrencies out there today. Despite the fact that Bitcoin lost a significant amount of value, a lot of people are still into cryptocurrencies. There is also the potential that institutional investors could get involved.
Today, the number of digital currencies exceeds 1,000. And because of this, it is important to rank cryptocurrencies. Now, typically, we see cryptocurrencies ranked based on their market capitalization. However, there are those that have used other metrics in ranking cryptocurrencies.
For China, it makes use of its own monthly cryptocurrency rating index. Despite Chinese regulators going against crypto activities, it has the China’s Center of Information Industry Development that ranks cryptocurrencies according to its standards.
This time around, EOS and Ethereum both maintained their first and second place positions for three months in a row. Also, Komodo moved closer to the top ranking third this time around. Komodo came from ninth place just from last month. As for Bitcoin, it went up from 16th place all the way to 10th place. Keep in mind that it isn’t the first time that Bitcoin wasn’t ranked as the number one cryptocurrency.
The monthly publication ranks the cryptocurrency based on three categories namely: technology, application, and total inventiveness. The scores are then accumulated in order to create an overall rating. And these digital currencies are then ranked accordingly. For this month, there were 33 coins that were featured.
EOS had a score of 158.7. It is up from its previous score of 145.6 from the previous month. However, EOS received a 161.5 high score during its launch. Ethereum, on the other hand, used to be the top-rated cryptocurrency in the publication. Ethereum improved its score by 3 points since July.
Innovation and Application
Why is Bitcoin ranked low? If you will take a closer look at the criteria used by CCID, it focuses more on innovation and application. and given these things, it isn’t surprising why Bitcoin can’t even break into the top 5. Nebulas, for instance, secured sixth place mainly because of the 6,800 dApps and 35,000 transactions per second in the network.
Does This Ranking Even Matter?
Does the ranking even matter? You could say that it doesn’t have any bearing at this point. Will it affect the price whatsoever, if it ever does affect the price, it won’t be that much.
Right now, many are focusing towards mass adoption and pleasing regulators. In fact, Ripple has been having trouble with regulators as it is dealing with multiple lawsuits. When US Securities and Exchange Commission considered both Bitcoin and Ethereum as commodities, Ripple has been left hanging.
If you ask Vitalik Buterin who is the co-founder of Ethereum, he believes that investors are focusing way too much on Bitcoin ETFs. Instead, there should be a focus towards mass adoption.
Ripple has been partnering with different banks hoping to solve cross-border transactions. Considering the amount of fees that could potentially be eliminated using Ripple’s products, the team is hoping that it can be adopted by large banks. However, Western Union released a statement saying that Ripple’s products don’t make any difference.