A new ranking has been published for the cryptocurrency sector, and Bitcoin, EOS, and XRP have been recognized as the best performing cryptocurrencies and those likely to succeed during this year and the next.
EOS, BTC, and XRP lead Weiss crypto ratings
Weiss Ratings published its annual cryptocurrency market report on Tuesday, March 26, in which it discussed emerging trends in the sector and highlighted the cryptocurrencies that were most likely to succeed over the coming months.
The report, which is called “Dark Shadows with a Bright Future,” captured the leading 120 cryptocurrencies. Weiss assigned letter grades to the cryptos which denote their achievements in terms of technology and adoption over the past twelve months.
XRP, which is currently the third largest digital currency by market cap, impressed researchers at Weiss. The cryptocurrency is ranked “A” according to the report, and it is considered to be the most likely to provide competition to SWIFT, the global interbank transactions platform. EOS was also given the same grade as XRP due to its efforts in becoming the backbone of the new internet and providing tough competition to the likes of Ethereum and Tron.
The leading cryptocurrency, Bitcoin, also received an “A” from the rating agency for its Lightning Network upgrade and for retaining its position as the primary store of value for crypto traders and investors. Ethereum (A-) and Cardano (B+) make up the top five of the list, with ETH’s function as the most widely used smart contract platform earning it valuable points. However, Ethereum’s continued struggle with scalability and adoption affected its overall score. Cardano’s vision to provide the most advanced smart contract capabilities, monetary policy, and governance solutions also impressed the researchers. The other cryptocurrencies in the top 10 are Steem, NEO, Stellar, Zcash, and BitShares.
Despite the positives recorded in terms of technology and adoption, the results of another rating in the Weiss report regarding risk and reward factors showed that most cryptocurrencies had not performed as hoped in those areas. According to the report, EOS, BTC, XRP, and BNB are the only cryptos rated at B- in the risk and reward category, with none of them performing satisfactorily enough (as per the ratings’ requirements, at least) to deserve an A. Due to the less than satisfactory results of the risk and reward ratings, Weiss has advised crypto investors to learn about the risks involved in cryptocurrencies and how best to avoid or reduce them.
The co-author of the report, Juan Villaverde, revealed five ongoing trends in the crypto space.
- The first one is the fact that an essential segment of the crypto industry is enjoying excellent growth in the volume of user transactions, which is a crucial aspect of adoption.
- Improving technology is helping cryptocurrencies achieve more adoption.
- Delegated Proof-of-Stake (DPoS) coins are increasing, while Proof-of-Work (PoW) coins are losing market share. This indicates that the way cryptos are secured is changing.
- Some cryptocurrencies are looking to make an impact beyond blockchain tech.
- Significant dApps will play a crucial role in determining some of the best performing digital currencies.
Martin D. Weiss, the founder of Weiss, believes that despite current market conditions, the best time to invest in digital currencies is very near. He stated that “Despite lower prices since early 2018, our rating model gives us hard evidence that a critical segment of the cryptocurrency industry has enjoyed remarkable growth in user transaction volume, network capacity, and network security. Equally important is our finding that these improvements are often powered by an evolution in the underlying technology. Therefore, for those willing to take the risk, the best time to invest could be very near.”
Some of the popular crypto bulls are expecting the Crypto Winter to end soon and prices to start moving positively. The co-founder of Fundstrat, Tom Lee, predicted that the crypto space would likely see improvements in the industry over the coming months that could ultimately lead to higher prices.