The most widely used ranking system for evaluating cryptocurrencies assesses them based on changes in their valuations. Kaiko analysts have now added further essential data to this assessment, which allows Ripple’s XRP to stand out from the competition. Let’s take a look…
A new ranking system for evaluating cryptocurrencies
The most commonly used ranking system for cryptocurrencies is based primarily on their real-time valuation, combined with the number and price of available units. Bitcoin is undoubtedly the undisputed leader in this field, with a market capitalization of over $2 trillion.
Next come the altcoins, whose undisputed leader remains Ether (ETH) with a current estimated valuation of $430 billion, almost three times more than the last member of the podium, Ripple’s XRP, with $150 billion, if we exclude stablecoins.
This is a situation that the analysis firm Kaiko clearly wants to add more nuance to, with the introduction of a “new ranking [that] evaluates assets beyond liquidity, examining six dimensions,” taking into account volume, liquidity, market capitalization, market availability, maturity, and retention.
In practice, “each asset receives an objective and reproducible rating from AAA to B, allowing for fair comparisons between more than 80 cryptocurrencies.” And it’s fair to say that—beyond the top three, which remain unchanged—the result differs somewhat from the ranking we are used to seeing.
Ripple’s XRP takes the lead ahead of SOL and even ETH
The real advantage of this ranking lies in its ability to apply separate filters to highlight or exclude certain projects based on their actual performance in the relevant field. This insight can change everything when it comes to estimating certain key parameters before investing.
To illustrate this scenario, Kaiko analysts take the example of the liquidity score applied to the 80 cryptocurrencies included in this report. This situation allows TRX to enter the top 10, at the obvious expense of LINK, which disappears completely.
Regardless of the ranking in question, one key finding emerges from this analysis. Ripple’s XRP ranks among the best-positioned assets in almost every scenario, ahead of direct and major competitors such as Solana and even Ether (ETH) in terms of liquidity score.
Special mention must be made of DOGE, which, against all odds, appears among the best assets in all the rankings provided as examples in Kaiko’s publication, whether in terms of overall ranking (#5), liquidity (#5), or availability of tradable products (#6).
