With thousands of different cryptocurrencies, from Bitcoin and Ethereum to Dogecoin and Tether, you can feel overwhelmed when you first step into the crypto world. For targeting, here are the top 10 cryptocurrencies based on their market cap or the total value of all coins currently in circulation.
What is cryptocurrency?
Cryptocurrency is a digital asset that can be circulated without a central bank or government authorization. To date, there are over 20,000 cryptocurrency projects representing the entire $1.07 trillion cryptocurrency market.
1. Bitcoin (BTC)
- Market cap: $441 billion
Bitcoin (BTC) was developed by Satoshi Nakamoto in 2009 as the original cryptocurrency. Like most cryptocurrencies, BTC operates on a blockchain or ledger that records transactions distributed across a network of thousands of computers. Since additions to the distributed ledger must be verified by solving a cryptographic puzzle, a process known as proof-of-work, Bitcoin is safe and secure for scammers.
The price of Bitcoin skyrocketed as it became a household name. In May 2016, you could buy Bitcoin for around $500. On August 1, 2022, the price of a single Bitcoin was around $23,046. This is an increase of over 4,500%.
2. Ethereum (ETH)
- Market cap: $201 billion
As a cryptocurrency and blockchain platform, Ethereum is a favorite among program developers because of its potential applications such as smart contracts and non-fungible tokens (NFTs) that execute automatically when conditions are met.
Ethereum has also seen huge growth. From April 2016 to early August 2022, the price rose from around $11 to around $1640, an increase of about 14,800%.
3. Tether (USDT)
- Market cap: $66 billion
Unlike some other forms of cryptocurrencies, Tether (USDT) is a stablecoin, which means it is backed by fiat currencies such as USD and EUR, and is assumed to retain a value equal to one of those denominations. In theory, this means that Tether should be more stable in value than other cryptocurrencies and favored by investors wary of the extreme volatility of other tokens.
4. USD Coin (USDC)
- Market cap: $54 billion
Like Tether, USD Coin (USDC) is a stablecoin, which means it is backed by the U.S. dollar and targets a $1-to-$1 ratio. USDC is powered by Ethereum and you can use USD Coin to complete global transactions.
5. Binance Coin (BNB)
- Market cap: $45 billion
Binance Coin (BNB) is a form of cryptocurrency that allows you to trade and pay fees on Binance, one of the largest cryptocurrency exchanges in the world. Since its launch in 2017, Binance Coin has gone beyond simply facilitating transactions on Binance Exchange. Now it can be used for commerce, payment processing and even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrencies such as Ethereum or Bitcoin.
The price of BNB in 2017 was only $0.10. By early August 2022, its price had risen to around $284, an increase of about 283,900%.
6. Ripple (Ripple)
- Market cap: $18 billion
Developed by some of the founders of digital technology and payment processing company Ripple, XRP is available on the network to facilitate the exchange of various currencies, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was $0.006. On August 1, 2022, its price reached $0.37, an increase of 6,066%.
7. Binance USD (BUSD)
- Market cap: $17 billion
Binance USD (BUSD) is a stablecoin created by Paxos and Binance to create a USD-backed cryptocurrency. To maintain this value, Paxos holds an amount of USD equal to the total supply of BUSD. Like other stablecoins, BUSD enables traders and crypto users to trade other crypto assets while minimizing the risk of volatility.
8. Cardano (ADA)
- Market cap: $17 billion
Later in the crypto space, Cardano (ADA) is known for its early adoption of proof-of-stake verification. This approach speeds up transaction times and reduces energy consumption and environmental impact by removing the competitive and problem-solving aspects of transaction verification in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications that support its native token, ADA.
Compared to other major cryptocurrencies, Cardano’s ADA token growth has been relatively modest. In 2017, the price of ADA was $0.02. August 1, 2022 at $0.50. This is an increase of 2,400%.
9. Solana (SOL)
- Market cap: $14 billion
Solana is designed to support decentralized financial applications (DeFi), decentralized applications (DApps) and smart contracts, running on a unique hybrid proof-of-stake and proof-of-history mechanism to process transactions quickly and securely. Solana’s native token, SOL, powers the platform.
When SOL launches in 2020, prices start at $0.77. In early August 2022, the price was around $41.55, an increase of nearly 5,300%.
10. Dogecoin (DOGE)
- Market cap: $9 billion
Dogecoin started as a joke in 2013, but it quickly grew into a well-known cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptocurrencies, there is no limit to the number of Dogecoins that can be created, which makes the currency prone to depreciation as supply increases.
The Dogecoin price in 2017 was $0.0002. By August 1, 2022, the price is $0.067, an increase of 33,400%.
Disclaimer: The content of this website should not be construed as investment advice. Investing is speculative. When investing, your capital is at risk.
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