Bitcoin’s Overwhelming Dominance Fails to Impress in China’s Crypto Rankings
The China Electronic Information Industry Development (CCID) that operates directly under the Ministry of Industry and Information Technology, released its latest crypto rankings, excluding bitcoin from the top 10.
In May, as reported by CCN, the CCID ranked bitcoin as 12th in the Global Public Blockchain Technology Assessment Index, placing blockchain protocols with significantly smaller market valuations above the dominant cryptocurrency.
Bitcoin has moved up a rank to 11th but fell behind COSMOS, a blockchain protocol that launched its mainnet in the first quarter of 2019. Other scalability-focused smart contract blockchain networks ranked higher up similar to previous reports.
Should bitcoin deserve more spotlight when dominance is going up?
According to data taken from CoinMarketCap, the dominance of bitcoin over the rest of the crypto market has steadily increased over the past three months from from 50 percent to 64.6 percent.
Following a pullback in the crypto market which saw its valuation drop by $87 billion within the past month, the dominance index of bitcoin demonstrated a noticeable increase, spiking to nearly 67 percent at its monthly high.
While it is a possibility that the growing dominance of bitcoin has had an effect on the evaluation of blockchain protocols by the CCID research team, the report explicitly noted that basic technology, application, and innovation remain the three main areas of interest in evaluating blockchain networks.
Blockchain protocols with a larger capacity and focus on clearing large amounts of information inherently have an edge over payments-focused blockchain networks based on the criteria established by the CCID.
EOS, TRON, Ehereum, and other smart contract blockchain protocols have consistently ranked highly on CCID’s blockchain rankings as a result, with cryptocurrencies like Bitcoin, Litecoin, and Monero struggling to break into the top 10.
A rough translation of the report read:
“The evaluation model is consistent with the previous issue and is still evaluated in three main areas: basic technology, application and innovation. The basic technology mainly evaluates the technical realization level of the public chain. The main inspection points include the function, performance, safety and decentralization of the public chain.”
Last year, CCID ranked bitcoin as 18th in ts rankings, favoring large capacity blockchain protocols. EOS has maintained the top spot since 2018.
Takeaways from the rankings
The rankings of CCID does not consider other fundamental areas and components of a blockchain protocol that provides value to the ecosystem.
The CCID team primarily relies on basic technology, application, and innovation to assess blockchain protocols and crypto assets launched on top of the protocols, excluding key areas like decentralization, structure, developer activity, and others.
The rankings do not necessarily indicate a high level of user activity or transaction volume which are crucial in evaluating the real world usage of blockchain protocols.
As long as the current criteria used by the CCID research team remains in tact, smart contract protocols are likely to continue having a clear advantage over blockchains with cryptocurrencies that are utilized to store or transfer value.