When you’re just starting out in the world of cryptocurrencies, it might be intimidating because there are dozens of different cryptocurrencies, from Dogecoin and Tether to Bitcoin and Ethereum. These are the top 10 cryptocurrencies according to market capitalization, which is the sum of all the coins in existence at the moment, to help you gain your bearings.
How Do Cryptocurrencies Work?
A digital asset based on blockchain technology that is free to circulate without the centralized control of a bank or government is known as a cryptocurrency. The cryptocurrency sector, which is expected to reach $4.94 billion by 2030, now has 24,630 projects underway.
1 Bitcoin (BTC)
$708.7 billion is the market cap.
The first cryptocurrency, known as Bitcoin (BTC), was developed in 2009 by Satoshi Nakamoto. BTC operates on a blockchain, which is a ledger that records transactions dispersed over a network of thousands of computers, just like the majority other cryptocurrencies. Bitcoin is protected from scammers because updates to the distributed ledgers need to be validated through the solution of a cryptographic problem known as proof of work.
As Bitcoin gains widespread recognition, its value soars. One Bitcoin cost around $500 in May of 2016. On November 14, 2023, the price of a single Bitcoin was around $36,264. That is a 7,153% gain.
2. Ethereum (ETH)
$246.2 billion is the market cap.
Ethereum is a blockchain platform and cryptocurrency that is popular among developers due to its potential uses, including non-fungible tokens (NFTs) and so-called smart contracts, which run automatically when certain conditions are satisfied.
Ethereum has grown astronomically as well. Its price increased 18,511% between April 2016 and the end of November 2023, from almost $11 to nearly $2,047.
3.USDT, or Tether
$87.1 billion is the market cap.
Tether (USDT), in contrast to certain other cryptocurrency versions, is a stablecoin—that is, it is backed by fiat currencies such as the US dollar and the euro and maintains a theoretical value equivalent to one of those denominations. Tether is preferred by investors who are apprehensive about the severe volatility of other coins since, theoretically, its value is meant to be more stable than that of other cryptocurrencies.
4.BNB, or Binance Coin
$37.2 billion is the market cap.
One of the biggest cryptocurrency exchanges in the world, Binance, accepts Binance Coin (BNB) as payment for fees associated with trading. Binance Coin has grown beyond just enabling trades on Binance’s exchange platform since its introduction in 2017. These days, it may be utilized for travel booking, payment processing, and trade. Additionally, it may be swapped or sold for other cryptocurrencies like Ethereum or Bitcoin.
In 2017, BNB was only worth $0.10. Its price increased to over $245 by late November 2023, a gain of 244,931%.
5.XRP (5 XRP)
$35.2 billion is the market cap.
XRP is a cryptocurrency that may be used on the Ripple network to enable the exchange of various currencies, including fiat currencies and other prominent cryptocurrencies. Ripple is a digital technology and payment processing firm founded by some of the same individuals.
The price of XRP was $0.006 at the start of 2017. Its price increased by 10,826% to $0.66 as of Nov. 14, 2023.
6.United States Dollar Coin (USDC)
$24.0 billion is the market cap.
Similar to Tether, USD Coin (USDC) strives for a 1 USD to 1 USDC ratio and is a stablecoin backed by US dollars. Ethereum powers USDC, and USD Coin allows you to conduct international transactions.
$23.8 billion is the market cap.
Solana is a blockchain that powers decentralized applications (DApps), smart contracts, and decentralized finance (DeFi). It processes transactions fast and securely using a hybrid proof-of-stake and proof-of-history method. The native token of Solana, SOL, drives the platform.
SOL’s initial price upon debut in 2020 was $0.77. By late November 2023, the price had increased by 7,224% to around $56.40.
$13.0 billion is the market cap.
Cardano (ADA), which entered the cryptocurrency space somewhat later, is renowned for being the first to adopt proof-of-stake validation. This approach eliminates the competitive, problem-solving element of transaction verification in systems like as Bitcoin, therefore speeding up transaction times and reducing energy consumption and environmental effect. Similar to Ethereum, Cardano uses its own token, ADA, to power decentralized apps and smart contracts.
Comparing Cardano’s ADA token to other prominent cryptocurrency currencies, its rise has been somewhat slow. The cost of ADA was $0.02 in 2017. Its price was $0.37 on November 14, 2023. This is a 1,738% rise.
9.DOGE, or Dogecoin
Famously launched as a joke in 2013, Dogecoin quickly gained popularity as a cryptocurrency because of its committed community and inventive memes. Dogecoins may be manufactured indefinitely, unlike many other cryptocurrencies, which makes the currency vulnerable to depreciation as supply grows.
In 2017, the price of Dogecoin was $0.0002. By November 2023, the price had increased by 37,036% to $0.07.
10.TRX, or TRON
$9.4 billion is the market cap.
TRON is a blockchain that can execute smart contracts and other DeFi applications, much as Solana. The platform’s proof-of-stake consensus method is powered by TRX, the native cryptocurrency of the network.When TRON was first established in 2017, one TRX token was worth $0.0019. In just a few months, TRX gained 11,715%, reaching a peak of $0.2245 in 2018. At the moment, TRX is worth about $0.11.