Crypto rankings compiled by China place Bitcoin blockchain outside of the top 10. The latest rankings released by the China Electronic Information Industry Development (CCDI) place 10 other blockchain protocols before Bitcoin according to their evaluation of a number of crypto projects. The CCDI operates under China’s Ministry of Industry and Information Technology.
As of May, the CCDI placed Bitcoin at number 12 on their Global Public Blockchain Technology Assessment Index. In the latest ranking, Bitcoin has moved up one place and is now sitting on the 11th. The evaluation by CCDI places blockchain protocols that have smaller market valuations above Bitcoin. As per the latest rankings, Bitcoin is ranked lower than COSMOS, a blockchain protocol whose mainnet was launched in the first quarter of 2019.
Are the rankings a reflection of Bitcoin’s position in the crypto world?
Bitcoin trading has come back strong over the past few months as the leading cryptocurrency benefited from renewed interest and conversation around digital assets. Data from CoinMarketCap reflects that Bitcoin’s dominance at the top of crypto markets has increased from 50% to 64.6% over the past three months. After the markets retracted and Bitcoin’s valuation dropped by $87 billion in the past month, the crypto came back strong to show a 67% monthly high on the dominance index.
The CCID reports that basic technology, application and innovation are the top three considerations for the rankings they come up with. Inspection points for each blockchain revolve around function, performance, safety and decentralization of the public blockchain. This means that blockchain protocols that have a larger capacity and are mainly focused on clearing large amounts of information have an advantage over payments focused blockchains.
This methodology means that smart contract blockchain protocols consistently rank higher than other blockchain protocols on CCID’s rankings. The criteria employed benefit blockchain protocols such as Ethereum, Tron and EOS while payment focused cryptocurrencies such as Bitcoin, Monero and Litecoin remain ranked lower. EOS has remained top of CCID’s rankings since 2018.
By focusing on basic technology, application and innovation as the areas which they use to rank blockchain protocols, the CCID omits some important aspects of blockchain which are important for the overall value of an ecosystem. Key areas such as structure, developer activity and decentralization are not considered but these are very important parts of any blockchain protocol.
The rankings also don’t account for the level of user activity or volume of transactions being executed on a particular blockchain. These aspects show how much a blockchain or cryptocurrency is being used by people and it is clear that people buy Bitcoin more than other cryptocurrencies.
The absence of all these other areas which should be taken into consideration means that the rankings will always favor smart contract blockchain protocols. Those blockchains which have units used to store or transfer value will remain at a disadvantage. Crypto traders should not be alarmed by these rankings and they should keep their holdings in their Bitcoin wallets.