TOP 10: COINS AND WHAT THEY DO
Here are the top 10 cryptocurrencies based on their market capitalization or the total value of all the coins currently in circulation :
1. Bitcoin (BTC):
The original cryptocurrency, Bitcoin, is decentralized and allows for peer-to peer transactions without the need for intermediaries. Roughly 14 years after its creation, Bitcoin is still by far the most popular and valuable cryptocurrency in the world. Bitcoin was created by a mysterious person or group of people using the pseudonym Satoshi Nakamoto, and its blockchain-based, decentralized transaction verification and public ledger system revolutionized how people think about digital security. While bitcoin’s decentralization and transparency make it appealing to investors and users, critics have raised concerns about its energy-intensive proof-of-work consensus mechanism and pointed out difficulties in scaling the network. In addition, there are now several large-scale crypto projects that have higher transaction speeds than bitcoin and others that have blockchains with special designs to improve bitcoin’s functionality.
2. Ethereum (ETH):
Ethereum is a blockchain platform that enables developers to build decentralized applications using smart contracts. Ethereum was one of the first altcoins, or alternatives to bitcoin. Ethereum was launched in July 2015 and is the most valuable crypto other than bitcoin. Ethereum’s blockchain was the first to introduce smart contracts, code that runs decentralized applications, or dApps. The ethereum blockchain is home to more than 1,400 applications and developer tools, and ether is the native cryptocurrency of the ethereum network. In 2023, ethereum completed its transition from a proof-of-work consensus mechanism to a much less energy-intensive proof-of-stake transaction verification system. Ethereum is now a greener investment than bitcoin, but its blockchain functionality is its key differentiator.
3. Tether (USDT):
Tether is a stablecoin that is backed by fiat currencies like the US dollar and the Euro. It is designed to maintain a stable value and is favored by investors who are wary of the extreme volatility of other coins.
4. Binance Coin (BNB):
Binance Coin is a cryptocurrency that can be used to trade and pay fees on Binance, one of the largest crypto exchanges in the world. BNB was originally created as a utility token built on the ethereum network that users could use to access discounted trading fees on the Binance exchange. But the token has since transitioned to Binance’s own blockchain. BNB can now be used for a wide range of transactions, applications and other use cases.
5. Solana (SOL):
Solana is a blockchain platform that aims to provide fast and low-cost transactions. Solana was launched in March 2020. Like ethereum, its network supports dApps, smart contracts and non-fungible tokens. But solana’s unique, hybrid proof-of-stake and proof-of-history verification system makes it faster and cheaper than ethereum. Unfortunately, the solana network has been plagued by outages since its launch, undermining its credibility within the crypto world. The solana network was down for nearly 20 hours in February 2023. Fortunately for investors, solana’s price got a big boost from the XRP court ruling, and its triple-digit gain in 2023 makes it the best-performing crypto on this list.
6. XRP (XRP):
XRP, created by Ripple, is a global payments network designed to be an alternative to the Society for Worldwide Interbank Financial Telecommunications. SWIFT is the global system banks and other financial institutions use to transfer money. But Ripple claims its technology is faster, cheaper and more transparent than the SWIFT system. XRP is the native cryptocurrency designed for the Ripple network and XRP Ledger blockchain. XRP got a huge boost in July when a judge in the Southern District of New York ruled that the crypto is “not necessarily a security” in certain circumstances, potentially putting it outside the SEC’s jurisdiction.
7. USDC (USDC):
USDC is a stablecoin that is backed by US dollars. It is designed to maintain a stable value and is favored by investors who are wary of the extreme volatility of other coins.
8. Cardano (ADA):
Cardano is a decentralized proof-of-stake blockchain launched in September 2017 to be a more efficient system than bitcoin, ethereum or other proof-of-work blockchains available at the time. Cardano immediately had credibility among crypto enthusiasts because ethereum co-founder Charles Hoskinson founded it. Like ethereum, Cardano is focused on functionality and aims to be the platform of choice for dApp development and verifiable smart contracts. ADA is the primary cryptocurrency used on the network to facilitate transactions and run dApps. Cardano users can also use ADA for staking to help verify the network’s transactions and earn additional tokens.
9. Avalanche (AVAX):
Avalanche is a blockchain platform that aims to provide fast and low-cost transactions. Avalanche is another protocol launched relatively recently. The mainnet went live in September 2020. Avalanche claims to have learned from other projects in the race to establish itself as the fastest, most secure blockchain. Like several other blockchains on this list, avalanche is a smart contract platform where decentralized apps (dApps) can be built. What separates avalanche is that it is compatible with ethereum. The blockchain’s native token is AVAX, which can be used to pay transaction fees and governance.
10. Dogecoin (DOGE):
Dogecoin was created in 2013 as a parody of Bitcoin, but the cryptocurrency has become a legitimate investment to many crypto traders because of its simplicity, its high-profile supporters and the online appeal of its shiba inu mascot. Dogecoin investor and Tesla CEO Elon Musk has repeatedly triggered volatility in dogecoin’s share price by mentioning or referencing the crypto. Musk is being sued by a group of dogecoin investors who allege he illegally manipulated its price. Billionaire entrepreneur Mark Cuban is also a dogecoin supporter and has praised the crypto for its potential as a medium of exchange.
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