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The crypto market found itself in another bull run after a recent Weiss Ratings report. The report has given a massive lift to EOS, which grew by nearly 20% in the last 48 hours. Following the boost, EOS, one of Ethereum’s largest rivals, managed to once again grow to the fourth spot on the list of largest cryptocurrencies by market cap, with its current price sitting at $4.29, and its market cap reaching $3.89 billion.
The coin overtook Litecoin’s position, currently exceeding its market cap by over $130 million. However, EOS is not the only coin that was affected by Weiss Ratings’ report. The report also gave a significant boost to Bitcoin, which once again exceeded the $4,000 mark.
Weiss report praises crypto advancements
The report came as quite a surprise, predicting that the coins might have quite a bright future. It was titled ‘Dark Shadows With A Bright Future,’ and it assigned letter grades to several coins with the best combination of technology and adoption. The impact on EOS came due to the fact that the report put the coin above Ethereum, with EOS’ grade being A, while Ethereum’s is A-.
Similarly to EOS, Bitcoin also received the A grade, which is a significant improvement from its former C+. The change of heart on behalf of Weiss comes after it recognized Bitcoin’s infrastructure improvement, with the most important one being the Lightning Network.
The same grade was given to XRP, while another Ethereum rival, Cardano, received A- due to its governance, monetary policy, and smart contract capabilities. Several other coins received a significant boost as well, including NEO, STEEM, Zcash, Stellar, and Litecoin, all of which were graded B+.
The report claims that there is a large assumption that the coin’s low prices indicate an industry-wide drop in usage and practical applications. However, the report argues against it, claiming that ‘nothing could be further from the truth.’ Instead, the authors stated that leading cryptos currently enjoy three times more volume in transactions than they did a year ago. They also noted significant improvements in the industry network’s security and capacity, which led to numerous grade improvements, as mentioned earlier.
Meanwhile, the coins’ underlying technology experienced major improvements as well, as part of its evolution, It is now much more efficient, and it offers better ways of creating new digital assets. Authors also mentioned that the combination of lower prices and improved fundamentals might provide a number of new opportunities for investors who are willing to take the risk, and invest in proper projects.
What did the rating system measure?
In order to provide a rating to all of the mentioned projects, the rating system took into an account numerous aspects. These included things such as the projects’ scalability, transaction speed, security of their networks, energy efficiency, the sophistication of monetary policies, public acceptance, network’s flexibility to upgrade, decision-making capabilities, as well as the sophistication of projects’ smart contracts.
The final grades are different than grades that the coins received for each individual category, with some of the largest projects’ scores not being as good in all of the areas, particularly in adoption grades and tech.
In this regard, Bitcoin, XRP, EOS, and Binance Coin received B-. However, they are not the worst, as Ethereum, Litecoin, Stellar, Cardano, TRON, and NEO got C+.
The future of Bitcoin and the crypto space
Bitcoin price has spent several months trading flat, but even so, numerous Bitcoin bulls — such as billionaire Mike Novogratz — continue to praise the coin and claim that better times are approaching. Novogratz is not alone in this prediction and is joined by a number of other significant figures in the crypto space. One of them is another billionaire, who serves as the CEO of Binance — Changpeng Zhao.
There are others apart from CZ, as well, like Brendan Blumer, the CEO of BlockOne and one of EOS co-founders, as well as the Winklevoss twins, who helped create Facebook, and then went on to found Gemini crypto exchange. The twins are particularly bullish on Bitcoin, expecting the coin’s price to surge in the near future.
Meanwhile, the crypto space still struggles to break free from the year-long bear market, which initially wiped out around $700 billion from the total crypto market cap. The bear market, which started in January 2018, also put a stop to the biggest crypto bull run in history, one which took Bitcoin to the price of $20,000 per coin.
The surge was expected to finally bring institutional investors to the crypto space, but the abrupt drop postponed the investors’ approach for over a year. Even now, when the bear market is seemingly losing its strength fast, the institutions remain hesitant, although they are expecting some projects — such as Bakkt Bitcoin Futures exchange — as well as crypto ETF with increased interest. Meanwhile, the US SEC struggles to create a proper regulatory framework, and it still warns investors of potential price manipulation, which has been one of the largest concerns that institutions have expressed.