Bitcoin gets all the headlines when people talk about cryptocurrencies, but there are literally thousands of other options when it comes to these digital currencies. Considered as “altocoins” or alternatives to Bitcoin.
Bitcoin may have been the first major cryptocurrency to debut in 2009, but many other cryptocurrencies are very popular, if not as big as the original.
The total dollar value of coins in existence, i.e. market capitalization, or the largest cryptocurrencies by market capitalization are: (Data is from his CoinMarketCap.com as of January 25, 2023.)
Largest cryptocurrencies by market capitalization
1. Bitcoin (BTC)
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price: $23,722
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Market capitalization: $457 billion
As a harbinger of the cryptocurrency age, Bitcoin remains the coin people commonly refer to when talking about digital currencies. Its mysterious creator – reportedly Satoshi Nakamoto – debuted the currency in 2009. , and have been on roller coasters ever since. However, it wasn’t until 2017 that cryptocurrencies gained public recognition.
2. Ethereum (ETH)
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price: $1,631.08
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Market capitalization: $199 billion
The name of the cryptocurrency platform, Ethereum, is the second most likely recognizable name in the crypto space. While the system can use Ether (the currency) to perform many functions, it is the smart contract aspect of Ethereum that helps make it a popular currency.
3. Tether (USDT)
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price: $1.00
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Market capitalization: $67 billion
The price of Tether is fixed at $1 per coin. Because it is a so-called stablecoin. Stablecoins are tied to the value of a specific asset, the US dollar in the case of Tether. Tether often serves as a vehicle for traders to move from one cryptocurrency to another. Use Tether instead of going back to dollars. However, some people are concerned that Tether is not safely backed by reserves and instead uses a short-term form of unsecured debt.
4. BNB (BNB)
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price: $312.92
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Market capitalization: $49 billion
BNB is a cryptocurrency issued by Binance, one of the world’s largest cryptocurrency exchanges. Binance Coin was originally created as a token for payment of discounted transactions, but now it can be used to pay as well as purchase various goods and services.
5. US Dollar Coin (USDC)
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price: $1.00
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Market capitalization: $44 billion
Like Tether, USD Coin is a dollar-pegged stablecoin. That is, its value should not fluctuate. The currency’s founders say it is backed by fully reserved assets or assets of “comparable fair value,” which are held in accounts with regulated US institutions.
6. XRP (XRP)
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price: $0.4233
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Market capitalization: $22 billion
Formerly known as Ripple and created in 2012, XRP offers a way to pay in a variety of real-world currencies. Ripple helps cross-border transactions and facilitates payments using a trustless mechanism.
7. Binance US Dollar (BUSD)
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price: $1.00
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Market capitalization: $15 billion
Binance USD is a dollar-denominated stablecoin of the cryptocurrency exchange Binance affiliated with Paxos. Binance USD was launched in 2019 and is regulated by the New York Financial Services Authority. BUSD runs on the Ethereum blockchain.
8. Cardano (ADA)
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price: $0.3786
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Market capitalization: $13 billion
Cardano is the cryptocurrency platform behind ada, the name of the currency. Created by the co-founders of Ethereum, Cardano also uses smart contracts to enable identity management.
9. Dogecoin (DOGE)
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price: $0.0875
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Market capitalization: $12 billion
Dogecoin was originally created as a joke after the rise of Bitcoin and got its name from an internet meme featuring a Shiba Inu. Unlike many digital currencies that limit the number of coins in existence, Dogecoin can be issued indefinitely. It can be used for payments and transfers.
10. Solana (SUN)
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price: $25.06
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Market capitalization: $9 billion
Launched in March 2020, Solana is a new cryptocurrency that touts the speed of transaction completion and the overall robustness of its “web scale” platform. The issuance of the currency called SOL is limited to 480 million coins.
11. Polygon (MATIC)
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price: $1.01
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Market capitalization: $9 billion
Polygon, a cryptocurrency focused on making it accessible to digital app creators, scales up the Ethereum cryptocurrency. Formerly known as Matic, they formed in 2017 and changed their name to Polygon in 2021.
12. Polka Dot (DOT)
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Price: $6.51
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Market cap: $7 billion
Launched in May 2020, Polkadot is a digital currency that connects the blockchain technologies of many different cryptocurrencies. The co-founder of Ethereum is one of the inventors of Polkadot, and some industry watchers believe Polkadot is about to overthrow Ethereum.
Conclusion
The cryptocurrency market is the Wild West (although the US government is set to take a more active role in overseeing the crypto space). As such, speculators in these digital assets should not invest more money than they can afford to lose. Crypto assets faced downward pressure for much of 2022, and trading remained volatile early in 2023. It’s also important to note that retail investors often trade with highly sophisticated players, making it a daunting experience for beginners.
Editorial Disclaimer: All investors are advised to conduct their own research on investment strategies before making any investment decision. Further, investors should be aware that past investment product performance is no guarantee of future price appreciation.
