When you first start getting involved in the world of cryptocurrencies, it can be very confusing because there are thousands of different cryptocurrencies to choose from, ranging from Bitcoin and Ethereum to Dogecoin and Tether. These are the top 10 cryptocurrencies on the market right now according to their market capitalization, which is the total value of all the coins that are currently in circulation. Hopefully, this will help you get your bearings.
What Exactly Are These Cryptocurrency Things?
A digital asset that can be circulated without the need for the centralized authority of a bank or government is referred to as a cryptocurrency. There are currently 22,088 cryptocurrency projects in development, which together account for the entirety of the $810 billion cryptocurrency market.
1. The Bitcoin (BTC)
Market cap: $323.1 billion
Bitcoin (BTC) is the first cryptocurrency ever created; its inventor, Satoshi Nakamoto, released it in 2009. BTC operates on a blockchain, or a distributed ledger that logs transactions and is spread out across a network of thousands of computers, just like the majority of other cryptocurrencies. Bitcoin is kept secure and safe from fraudsters thanks to a process known as proof of work, which requires additions to the distributed ledgers to be verified by finding the solution to a cryptographic puzzle.
The price of bitcoin has skyrocketed as a result of its increased visibility in the public eye. In May of 2016, the cost of purchasing one Bitcoin was approximately $500. As of the 20th of December in 2022, the price of a single Bitcoin was approximately $16,795. That represents an increase of 3,259%.
2. Ethereum (ETH)
Market cap: $148.0 billion
Ethereum, which is both a cryptocurrency and a blockchain platform, is a favorite among program developers due to the potential applications that it could have. These applications include so-called smart contracts, which are agreements that automatically carry out their terms when certain conditions are satisfied (NFTs).
Ethereum, too, has seen tremendous expansion in recent years. The price of the item increased by 10,897% between April 2016 and the end of December 2022, going from approximately $11 to approximately $1,210.
3. Bind securely (USDT)
Market cap: $66.2 billion
Tether (USDT) is a stablecoin, which means that it is backed by fiat currencies such as the U.S. dollar and the Euro and that it theoretically maintains a value equal to one of those denominations. This sets it apart from some other forms of cryptocurrency. Because of this, the value of Tether is supposed to be more stable than the value of other cryptocurrencies, and investors who are concerned about the high degree of volatility that is associated with other coins tend to favor Tether.
4. A coin worth one U.S. dollar (USDC)
Market cap: $44.5 billion
Similar to Tether, USD Coin (USDC) is a stablecoin, which means that it is supported by U.S. dollars and aims to maintain a ratio of 1 USD to 1 USDC at all times. You are able to use USD Coin to carry out transactions anywhere in the world. USD Coin is powered by Ethereum.
5. The Binance Coin (BNB) (BNB)
Market cap: $39.8 billion
Binance Coin (BNB) is a type of cryptocurrency that can be used to trade on Binance, one of the largest cryptocurrency exchanges in the world, as well as pay fees associated with trading. Binance Coin has expanded beyond its initial purpose of facilitating trades on the Binance exchange platform since it was first introduced in 2017. Trading, the processing of payments, and even making travel reservations are now all possible uses for the platform. Additionally, it may be bought, sold, or otherwise transacted for other cryptocurrencies, such as Ethereum or Bitcoin, via trading or exchange.
In 2017, BNB traded at a price of only $0.10. Its price had increased to approximately $249 by the end of December 2022, representing a gain of 248,944%.
6. Binance in US Dollars (BUSD)
Market cap: $18.34 billion
Paxos and Binance came up with the idea to create a cryptocurrency that was backed by the United States dollar and launched it as a stablecoin known as Binance USD (BUSD). Paxos stores an amount of U.S. dollars that is equivalent to the total supply of BUSD so that its value can remain stable. As is the case with other stablecoins, BUSD enables traders and cryptocurrency users to engage in transactions involving other crypto assets while simultaneously reducing the risk of price fluctuations.
7. XRP (XRP) (XRP)
Market cap: $17.3 billion
XRP is a digital currency that can be used on the Ripple network to facilitate exchanges of various currency types. These currency types include fiat currencies as well as other major cryptocurrencies. XRP was created by some of the same founders as Ripple, a digital technology and payment processing company.
The price of XRP was $0.006 at the beginning of the year 2017. Its price had reached $0.34 as of the 20th of December, 2022, representing an increase of 5,636%.
8. Dogecoin (DOGE)
Market cap: $9.78 billion
Dogecoin is famous for having been created as a joke in 2013, but it rapidly evolved into a prominent cryptocurrency thanks to a committed community and creative memes. Dogecoin, in contrast to many other cryptocurrencies, does not have a cap on the total number of coins that can be created. Because of this, the value of the currency is susceptible to decline as the total amount of coins in circulation increases.
In 2017, one dogecoin was worth $0.0002, according to its price. By December of 2022, the price had increased by 36,771%, reaching $0.07 at that point.
9. Cardano (ADA)
Market cap: $8.9 billion
Cardano (ADA), which entered the cryptocurrency market at a later stage than other prominent cryptocurrencies, is notable for its early adoption of proof-of-stake validation. By removing the competitive and problem-solving aspects of transaction verification in platforms like Bitcoin, this method shortens the amount of time it takes to complete a transaction while also reducing the amount of energy used and the impact it has on the environment. Cardano also functions similarly to Ethereum in that it enables smart contracts and decentralized applications, both of which are powered by ADA, the network's native coin.
In comparison to the growth of other major cryptocurrencies, Cardano's ADA token has seen only moderate progress. In 2017, the price of ADA was $0.002 USD. As of the 20th of December in 2022, the cost was $0.26. This represents a 1,188% increase from before.
10. Polygon (MATIC)
Market cap: $6.9 billion
Polygon, a cryptocurrency that was established in 2017 and formerly went by the name Matic Network, is one of the more well-known cryptocurrencies. It has been dubbed the "internet of blockchains powered by Ethereum." Perhaps this is the reason why MATIC supports more than 7,000 applications that are decentralized (dApps).
Since it was first introduced to the market, Polygon has also seen tremendous expansion. When it was first made available to the public, one MATIC token could be purchased for $0.00263. At its current price of $0.79, MATIC has seen a price increase of 30,126%.