Every time you hear the word cryptocurrency, the next thing that most likely pops in your head is Bitcoin? Bitcoin may have become like a second name for cryptocurrencies but the truth is, there are thousands of other cryptocurrencies in the market that don’t get even half the attention that Bitcoin does! Check out more about the market cap at Multibank.io.
Let us break it to you: All Bitcoins are cryptos but not all cryptos are Bitcoins. There are numerous ‘altcoins’ that are literally, alternatives to this most popular cryptocurrency. Even though Bitcoin has the largest market share and was the first cryptocurrency that was launched back in 2009, here are some altcoins that have the potential to be the next big thing:
When you make a payment through cryptocurrencies that is digital money, you use a decentralized, internet-based network to carry out the transaction. Value tokens as some altcoins may also be known as are categorized in relation to this definition.
Not all blockchain tokens are meant to carry out payments. Some like the Initial Coin Offering (ICO) are issued as a part that certifies that an investor or a trader holds an X percentage/amount of stake in a particular blockchain or decentralized finance (DeFi) project. They may also be called security tokens if they’re associated with the value of an organization. Remember that the term ‘security’ here, has nothing to do with safety but is more representative of security like in a stock market.
Then there are utility tokens that serve a particular function or have a specific use. Storj tokens or Namecoin are some examples of this. While Storj coins enable sharing of files over a decentralized network, Namecoin plays a huge role for internet addresses. It offers Domain Name System (DNS) service on a decentralized platform.
What is the market cap of some of the biggest cryptocurrency coins? Here’s where they stand as of April 2022:
- Bitcoin (BTC)
Market cap: $880 billion
Known as the original cryptocurrency, Bitcoin was launched in 2009. It was first pitched as a research project in 2008. Bitcoin, often abbreviated as BTC, operates through a blockchain or a distributed ledger that functions using a large network of computers known as nodes.
Bitcoin is secure crypto that is extremely difficult to tamper with. Any addition or transaction is added to its blockchain network through a process known as proof of work. It registers and verifies every single addition by solving a complex mathematical puzzle called a cryptographic puzzle.
As of April 1, 2022, the value of just one Bitcoin was $46,300, implying growth of over 9,000%.
- Ethereum (ETH)
Market cap: $415 billion
Program developers are particularly fond of Ethereum which is both a cryptocurrency and a blockchain platform. Ethereum’s applications like smart contracts and Non-Fungible Tokens (NFTs) have contributed greatly to its growth. In a span of just six years, the value of this crypto has been increasing by a rate of more than 31,000%. To put this into perspective, the value of an Ethereum was $11 in April 2016 which went on to be over $3,450 by April 2022!
- Tether (USDT)
Market cap: Over $79 billion
A tether is a great option for those who are interested in cryptocurrency but the volatility throws them off. Tether offers a sense of security that Ethereum and Bitcoin don’t–Tether is backed by fiat currencies like Euro and the U.S dollars. This makes it a stablecoin, so its value remains equal to one of the currencies, even if that is the case, hypothetically. Further, this would imply that at least in theory, one may say Tether’s value is far more consistent than the others.
- Litecoin (LTC)
Market cap: Over $7.4 billion
Litecoin (LTC) is one of the fastest-growing cryptocurrencies which is known to be tracing Bitcoin’s journey. This coin often referred to as “silver to Bitcoin’s gold” was launched in 2011. It boasts of faster block generation which results in a faster confirmation time of transactions. LTC operates on an open-source payment network that functions globally and is accepted not just by developers but also by several crypto traders. It has shown a steady growth rate which currently stands at 97%, where one LTC is worth $111.3.
- Cardano (ADA)
Market cap: $39 billion
Even though Cardano’s growth has been humble when compared to other cryptocurrencies, it has made in-roads into the blockchain-based financial sector because of its proof-of-stake validation method. This method drastically reduces transaction time and energy consumption, thereby being environment-friendly crypto! This isn’t something one can say about BTC or Ethereum for that matter.
However, like Ethereum, Cardano’s native coin ADA also powers smart contracts and decentralized applications. The price of ADA has risen by 5,750% from $0.02 in 2017 to $1.17 in April 2022.
- Polkadot (DOT)
Market cap: $20 billion
Polkadot is a cryptocurrency that was launched in May 2020. Its USP is that it links the blockchain technology of several cryptocurrencies as the key component in this is a relay chain. This chain makes it possible to operate different networks on a single platform as it connects permissioned and permissionless blockchains.
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- Terra (LUNA)
Market cap: $37 billion
Terra is a digital platform that uses its cryptocurrency Luna to minimize fluctuations in the price of stablecoins that are based on fiat currencies like USD or Euro. It also offers smart contracts and has risen from $0.64 to $106 per coin within a year (Jan 2021 to April 2022)
- Avalanche (AVAX)
Market cap: Over $26 billion
Avalanche supports blockchain-based software that develops and processes smart contracts through AVAX, its native token. Launched in 2020, it has grown by over 2,000% from $4.63 to $97.58. It owes a lot of its growth to the relatively low gas fees and quick processing of transactions.