From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you start out in the world of cryptocurrencies. To help you find your way, here are the top 10 cryptocurrencies based on their market capitalization or the total value of all coins currently in circulation.
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. Like most cryptocurrencies, BTC runs on a blockchain, or a ledger of transactions spread across a network of thousands of computers. Since additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin remains safe and secure from scammers.
The price of bitcoin has skyrocketed as it has become a household name. In May 2016, you could buy a bitcoin for around $ 500. As of May 1, 2022, the price of a single Bitcoin was over $ 38,000. This represents growth of over 7,500%.
2. Ethereum (ETH)
Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers due to its potential applications, such as so-called smart contracts that execute automatically when conditions are met and non-fungible tokens (NFTs).
Ethereum has also seen tremendous growth. From April 2016 to early May 2022, its price jumped from around $ 11 to over $ 2,700, an increase of nearly 25,000%.
Unlike other forms of cryptocurrencies, Tether is a stablecoin, which means it is backed by fiat currencies like the US dollar and the euro and hypothetically holds a value equal to one of these denominations. In theory, this means that Tether’s value should be more constant than that of other cryptocurrencies and is favored by investors who are wary of the extreme volatility of other currencies.
3. Binance (BNB)
Binance Coin is a form of cryptocurrency that you can use to trade and pay commissions on Binance, one of the largest cryptocurrency exchanges (exchanges) in the world.
Since its launch in 2017, Binance Coin has grown beyond simply facilitating trade on the Binance exchange. It can now be used for commerce, payment processing, or even travel booking. It can also be traded or exchanged for other forms of cryptocurrencies, such as Ethereum or Bitcoin.
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BNB’s price in 2017 was just $ 0.10. By early May 2022, its price had risen to around $ 383, a gain of around 350,000%.
4. Solana (SOL)
Developed to help power decentralized financial uses (DeFi), decentralized applications (DApps) and smart contracts, Solana operates on a unique hybrid proof-of-stake and proof-of-history mechanism that enables transactions to be processed quickly and safe. SOL, Solana’s native token, powers the platform.
When it launched in 2020, the price of SOL was $ 0.77. As of May 1, 2022, its price was around $ 87, with a gain of over 11,000%.
Created by some of the same founders of Ripple, a digital technology and payment processing company, XRP can be used on this network to facilitate the trading of different types of currencies, including fiat currencies and other major cryptocurrencies.
As of early 2017, XRP’s price was $ 0.006. As of May 1, 2022, its price reached $ 0.59, which equates to an increase of over 9,800%.
6. Cardano (ADA)
A little further on in the cryptocurrency scene, Cardano stands out with its early adoption of proof-of-stake validation. This method accelerates transaction times and reduces energy consumption and environmental impact by removing the competitive and problem-solving aspect of transaction verification found on platforms such as Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications that are powered by ADA, its native currency.
Cardano’s ADA token has seen relatively modest growth compared to other major cryptocurrencies. In 2017, ADA’s price was $ 0.02. As of May 1, 2022, its price was $ 0.77. This is an increase of 3,750%.