Weiss Ratings: EOS is the best cryptocurrency, then Ripple, and THEN Bitcoin

A division of finance mainstay Weiss Ratings has today put prominent altcoins EOS and Ripple (XRP) alongside Bitcoin BTC as the top three “cryptocurrencies” on the market — and it’s sure to rustle some feathers.

Digital asset ratings unit Weiss Crypto Ratings studied 122 cryptocurrencies across the market using a variety of metrics. The report seeks to dispel what it describes as a misunderstanding amongst observers who “seem to assume there’s been an industry-wide decline in usage and practical applications.”

“Nothing could be further from the truth,” declared Weiss. “Leading cryptocurrencies now enjoy three times more volume in user (on-chain) transactions than they did in early 2018. The industry’s network capacity and security have improved dramatically. And the underlying technology has evolved with new, more efficient ways to create digital assets.”

But while Weiss noted a marked improvement in the technology of many projects, the highest “Weiss Rating” assigned to any cryptocurrency was a “B-” (good). This grade was shared by EOS, XRP, Bitcoin, and Binance’s BNB; although the latter came with a disclaimer: “Binance’s ‘B-‘ is influenced by a recent price surge, which may not be sustainable.”

The rest of the rankings featured 27 cryptocurrencies with an overall rating in the C-range (fair), 75 coins in the D-range (weak), and 16 in the E-range (very weak).

Bitcoin, formerly ranked C+, was bumped up after Weiss recognized improvements to its infrastructure, such as the Lightning Network.

EOS and XRP were said to merit a B-, primarily due to high scores in Weiss’ technology and adoption metrics. Curiously, the second most popular cryptocurrency by market cap, Ethereum, didn’t even make the top five.

Hard Fork spoke with Weiss Crypto Ratings’ chief analyst Juan Villaverde to better understand how it came to these conclusions, as well as how critical factors like consensus and decentralization factor into the firm’s methods.

The four factors of Weiss’ crypto currency rating system

Weiss published two top 10 lists: one that considers possible risks and rewards associated with investing in cryptocurrency, and one that doesn’t.

Disregarding the risks involved with investing in digital assets resulted in higher grades for pretty much every top cryptocurrency.

“Investors must not ignore the risk of loss, which remains far higher in crypto markets than virtually any other asset class,” reads the report. “Thus, the overall Weiss Crypto Ratings, which include risk and reward factors, are lower than the Weiss Tech/Adoption grades.”

The list on the left below includes considerations related to potential risks associated with investing in these digital assets, and the other doesn’t.