The 10 Largest Cryptocurrencies Edge Close to $3 Trillion?
The supercharged Bitcoin bull run over the last week or so has impacted many areas of the financial markets. However, its most profound impact was a ripple effect across other cryptocurrencies, propelling them upwards in tandem. This dramatic turnaround marks a significant shift in the crypto market's trajectory, especially considering the bleak bear market conditions it endured throughout 2022.
Bitcoin has staged an impressive recovery, soaring by over 300% from its lows in 2022. This resurgence has rejuvenated Bitcoin and contributed to the collective value of the crypto market, which now stands at an impressive $2.7 trillion. Below, you'll find CoinMarketCap's top 10 largest crypto tokens according to market value.
1. Bitcoin
Ticker: (BTC-USD)
Year-to-date performance: 71%
Market value: $1.42 trillion
Bitcoin is a decentralized digital currency that operates without the need for a central authority or intermediary. An anonymous person known as Satoshi Nakamoto introduced Bitcoin in 2009 by outlining its principles in a whitepaper. Bitcoin transactions become recorded events on a public ledger called a blockchain, which ensures transparency and security.
Unlike traditional currencies, Bitcoin is immune to government or financial institution control. Its value depends on supply and demand in the market. Bitcoin is valuable for various purposes, including online purchases, investments, and value storage. Its decentralized nature and finite supply appeal to many users seeking alternatives to traditional financial systems. Even before the introduction of Bitcoin spot ETFs, Bitcoin had gained widespread adoption, becoming a prominent asset class in the global financial landscape.
2. Ethereum
Ticker: (ETH-USD)
Year-to-date performance: 75%
Market value: $483.1 billion
Ethereum (ETH) is one of the leading cryptocurrencies, ranking second only to Bitcoin in terms of popularity and market capitalization. Established in 2015 by Vitalik Buterin and Gavin Wood, Ethereum has carved out a significant share of the global crypto market, representing around 20% of the total $1.1 trillion valuation.
Setting itself apart from Bitcoin, Ethereum offers a unique proposition. While Bitcoin is primarily a digital currency and store of value, Ethereum goes beyond these functions. It operates as a decentralized computing network, leveraging blockchain technology to enable various applications beyond simple transactions. This distinction positions Ethereum as a platform for decentralized finance (DeFi), smart contracts, and various other innovative use cases within the blockchain ecosystem.
Described as "a global, decentralized platform for money and new types of applications," Ethereum boasts a diverse ecosystem with thousands of games and financial applications operating on its blockchain. Its versatility has made it a cornerstone of the cryptocurrency world, with even other digital currencies utilizing its network for their operations. This widespread adoption speaks to Ethereum's robust infrastructure and pivotal role in driving innovation within the broader crypto landscape.
3. Tether
Ticker: (USDT-USD)
Year-to-date performance: 0%
Market value: $102.1 billion (Tether is the biggest stablecoin by market capitalization)
Tether (USDT) is a type of low-volatile cryptocurrency known as a stablecoin. Its purpose is to hold a stable value similar to a fiat currency like the US dollar. Unlike Bitcoin or Ethereum, whose values can fluctuate significantly, stablecoins like Tether aim to provide stability and consistency in value.
This cryptocurrency achieves this stability by pegging its value directly to the US dollar at a 1:1 ratio. For this reason, Tether tokens in circulation should have a corresponding amount of US dollars held in reserves by the issuer. Tether Limited, the company behind Tether, claims to hold these reserves in banks to back the value of USDT.
Since Tether is the biggest stablecoin by market capitalization, this cryptocurrency is helpful to the cryptocurrency ecosystem for various purposes, including trading on exchanges, facilitating cross-border transactions, and providing liquidity in decentralized finance (DeFi) protocols. Its stable value makes it an attractive option for experienced traders and investors who wish to hedge against the volatility of other cryptocurrencies while still enjoying the benefits of digital assets. However, Tether has also faced scrutiny and controversy regarding its transparency, reserve backing, and regulatory concerns.
4. Binance Coin
Ticker: (BNB-USD)
Year-to-date performance: 62%
Market value: $77.1 billion
Binance Coin (BNB) is the signature cryptocurrency of the popular cryptocurrency exchange platform Binance. Initially launched as an ERC-20 token on the Ethereum blockchain in 2017, BNB has since migrated to Binance's blockchain, Binance Chain.
BNB serves various purposes within the Binance ecosystem. Initially, it was primarily used to pay for trading fees on the Binance exchange, offering users discounted fees when using BNB for transactions. Additionally, Binance periodically uses a percentage of its profits to repurchase and burn BNB tokens. The intent is to reduce the overall supply and potentially increase its value over time.
Beyond its utility on the Binance exchange, BNB has expanded its use cases significantly, including participating in token sales on the Binance Launchpad platform, accessing premium features and services within the Binance ecosystem, and as a means of payment for goods and services through merchants that accept BNB.
Binance Coin has gained popularity and value over the years. It has become one of the top cryptocurrencies by market capitalization. Its versatility, strong community support, and integration into the Binance ecosystem have contributed to its success as a prominent digital asset in cryptocurrency.
5. Solana
Ticker: (SOL-USD)
Year-to-date performance: 43.5%
Market value: $64.9 billion
This cryptocurrency is a high-performance blockchain platform that supports decentralized applications (dApps) and crypto-native projects. Launched in March 2020, the creators of Solana designed it to address some scalability and performance issues other blockchain networks face, including slow transaction speeds and high fees.
One of Solana's key features is its high throughput, which makes it capable of processing thousands of transactions per second (TPS). This process relies on a unique consensus mechanism called Proof of History (PoH), which timestamps transactions before they are added to the blockchain, improving overall network efficiency.
Solana also employs a technology called Proof of Stake (PoS) for consensus, where validators stake SOL, the resident cryptocurrency of the Solana network, to secure the network and validate transactions. This process helps ensure security while reducing energy consumption versus Proof of Work (PoW) consensus mechanisms used by some blockchains like Bitcoin.
The Solana ecosystem is home to various decentralized applications spanning DeFi (Decentralized Finance), NFTs (Non-Fungible Tokens), gaming, and more. Projects built on Solana benefit from its high throughput, low transaction costs, and scalability, offering users a seamless and cost-effective experience.
With its focus on scalability, performance, and developer-friendly features, Solana has emerged as a promising blockchain platform, attracting the attention and investment of developers and investors in the cryptocurrency space.
6. Ripple
Ticker: (XRPCHAIN-USD)
Year-to-date performance: 16.9%
Market value: $39.1 billion
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Ripple is a digital currency and an open payment network designed for fast and low-cost cross-border transactions. XRP is the signature cryptocurrency of the Ripple network and facilitates transactions between different fiat currencies. Ripple's network aims to provide a more efficient alternative to traditional payment systems like SWIFT.
Ripple Labs: Ripple Labs developed the Ripple protocol and XRP cryptocurrency. Founded in 2012, It has been instrumental in promoting the adoption of blockchain technology for international payments and fostering partnerships with financial institutions worldwide.
7. USD Coin
Ticker: (USDC-USD)
Year-to-date performance: 0%
Market value: $30.2 billion
USD Coin (USDC) is a stablecoin. Its function is to maintain a stable value relative to the US dollar (USD). Each USDC token is pegged to the value of one US dollar, meaning that one USDC should always be worth one USD.
USDC is the result of a collaborative effort between Circle and Coinbase, two prominent companies in the cryptocurrency industry. It functions on the Ethereum blockchain as an ERC-20 token, although it has since expanded to operate on other blockchain platforms as well, such as Algorand and Solana.
The primary purpose of the USD Coin is to provide a reliable and transparent digital representation of the US dollar. It can be used for various purposes within the cryptocurrency ecosystem, including trading on exchanges, sending remittances, and participating in decentralized finance (DeFi) applications.
One of the prized benefits of USD Coin is its stability, which makes it a valuable tool for investors looking to hedge against the volatility of other cryptocurrencies. Additionally, USDC is regulated and audited regularly to ensure that it receives full backing from reserves of US dollars held in banks.
8. Cardano
Ticker: (ADA-USD)
Year-to-date performance: 26%
Market Value: $27.1 billion
Cardano exists as a decentralized blockchain platform and cryptocurrency project founded by Charles Hoskinson, one of the co-founders of Ethereum. Launched in 2017, its designers aimed to make Cardano a more secure, scalable, and sustainable infrastructure for processing and executing smart contracts and decentralized applications (dApps).
One of the key distinguishing features of Cardano is its scientific and research-driven approach to development. The project stems from peer-reviewed academic research and formal verification methods, which aim to ensure high levels of security and reliability.
Cardano utilizes a layered architecture designed for scalability. It consists of two main layers: the Cardano Settlement Layer (CSL) and the Cardano Computation Layer (CCL). The CSL handles ADA transactions, while the CCL executes smart contracts and dApps.
The platform operates on a proof-of-stake (PoS) consensus mechanism called Ouroboros, which aims to provide higher security and energy efficiency than traditional proof-of-work (PoW) systems.
ADA is the signature cryptocurrency of the Cardano platform. It can be used for various purposes within the Cardano ecosystem, including transactions, staking, governance, and smart contract interactions.
Cardano's development is separated into phases or eras: Byron, Shelley, Goguen, Basho, and Voltaire. Each era introduces new features and functionalities, aiming to create a fully decentralized and autonomous blockchain platform.
Cardano aims to address challenges such as scalability, security, and sustainability that existing blockchain platforms face. It has positioned itself as a leading option for building decentralized applications and providing financial services globally.
9. Dogecoin
Ticker: (DOGE-USD)
Year-to-date performance: 91%
Market value: $24.9 billion
Dogecoin is a cryptocurrency that started as a light-hearted joke or meme but has since evolved into a popular digital currency with a vibrant community. In December 2013, software engineers Billy Markus and Jackson Palmer created Dogecoin as a parody of the burgeoning cryptocurrency market at the time.
The name "Dogecoin" is derived from the famous "Doge" meme featuring a Shiba Inu dog with humorous captions written in broken English. The logo of Dogecoin also features the same Shiba Inu dog.
Technically, Dogecoin shares the same technology as Litecoin, utilizing the Scrypt algorithm for mining. It operates on a decentralized blockchain and enables peer-to-peer transactions with low fees and fast confirmation times.
Despite starting as a joke, Dogecoin has gained a significant following and community due to its friendly and welcoming atmosphere. The community has often come together to support charitable causes and engage in various initiatives, earning Dogecoin a reputation for generosity and goodwill.
Dogecoin's value has experienced significant volatility over the years, with periods of rapid growth and price surges followed by periods of consolidation. While initially intended as a fun and light-hearted project, Dogecoin has become a legitimate digital currency with real-world utility and a dedicated following.
10. Shiba Inu
Ticker: (SHIB-USD)
Year-to-date performance: 211%
Market value: $19.0 billion
Shiba Inu Coin, also known as Shiba Coin or SHIB, is a cryptocurrency token inspired by the popular "Doge" meme and the Shiba Inu breed of dog. An anonymous individual or group using the pseudonym "Ryoshi" created Shiba Inu in 2020.
Like Dogecoin, Shiba Inu Coin started as a meme coin, initially created as a joke or experiment. However, it gained traction and popularity, particularly within the cryptocurrency community, leading to a surge in its value and trading activity. Shiba Inu also has a large, enthusiastic group of followers known as the Shib Army.
Shiba Inu Coin operates on the Ethereum blockchain as an ERC-20 token. It features a decentralized ecosystem and allows users to engage in peer-to-peer transactions, decentralized finance (DeFi) activities, and other cryptocurrency-related activities.
One notable aspect of Shiba Inu Coin is its tokenomics, which includes a large total supply of tokens. The project's whitepaper outlines burn events, staking rewards, and decentralized exchange liquidity pools to incentivize holders and create scarcity over time.