From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re getting started in the crypto world. To help you get your bearings, 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 distributed across a network of thousands of computers. Because additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, bitcoin remains secure and safe from fraudsters.
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 more than 7,500%.
2. Ethereum (ETH)
Both a cryptocurrency and a blockchain platform, Ethereum is a favorite among program developers due to its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs) .
Ethereum has also seen tremendous growth. From April 2016 to early May 2022, its price rose from around $11 to over $2,700, an increase of almost 25,000%.
Unlike some other forms of cryptocurrencies, Tether is a stablecoin, meaning it’s backed by fiat currencies like the US dollar and euro and hypothetically holds a value equal to one of those. denominations. In theory, this means that the value of Tether is supposed to be more constant than that of other cryptocurrencies, and it is favored by investors who are wary of the extreme volatility of other coins.
3. Binance (BNB)
Binance Coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges (exchanges) in the world.
Since its launch in 2017, Binance Coin has grown beyond simply facilitating trade on the Binance exchange. Now, it can 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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The price of BNB in 2017 was just $0.10. At the beginning of 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 helps it process transactions Quickly and safely. SOL, Solana’s native token, powers the platform.
When launched in 2020, the price of SOL was $0.77. As of May 1, 2022, its price was around $87, a gain of over 11,000%.
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on this network to facilitate trading of different types of currencies, including fiat currencies and other major cryptos.
At the start of 2017, the price of XRP was $0.006. As of May 1, 2022, its price has reached $0.59, which is equivalent to a rise of more than 9,800%.
6. Cardano (ADA)
A bit later in the crypto scene, Cardano is notable for its early adoption of proof-of-stake validation. This method speeds up transaction time and decreases energy consumption and environmental impact by removing the competition and problem-solving aspect of transaction verification present in platforms like 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, the price of ADA was $0.02. As of May 1, 2022, its price was $0.77. This is an increase of 3,750%.