Since the earliest days of cryptocurrency, when there were only a select few digital assets available, the meaning of the term “altcoin” has undergone significant development. At that time, the term “altcoin” referred to any cryptocurrency that was not Bitcoin (BTC).
The universe of crypto assets has significantly expanded in recent years. Because there is such a wide range of currencies and tokens with use cases that go well beyond that of a medium of exchange, it is safe to say that not all of them are direct rivals of Bitcoin.
Nevertheless, in the absence of a more appropriate label, the most common understanding of what constitutes an altcoin is that it is any kind of cryptocurrency that is not Bitcoin.
Here is a look at the top 10 alternative cryptocurrencies, excluding stablecoins, as ranked by market capitalisation. Stablecoins are not included since their primary purpose is to provide price stability and thus are not commonly seen as being suitable for speculative investments.
Market cap: $156 billion
More than 19% of the entire market capitalization of the more than 20,000 crypto assets that are accessible today is held in Ethereum (ETH), which is the largest altcoin on the market. This market capitalization equals one trillion dollars.
In contrast to Bitcoin, which is referred described as a “decentralised money,” think of Ethereum as a distributed computing network. On Ethereum, users may utilise the blockchain to run decentralised apps (also known as dApps) and host smart contracts.
According to Walker Holmes, vice president of the metaverse platform MetaTope, “Bitcoin (BTC) is a store of value whereas Ethereum (ETH) is a decentralised playground for builders to define the future in the technological advances of blockchain technology.” [Citation needed]
The hefty transaction costs associated with Ethereum are a cause of contention among its detractors. Ethereum, on the other hand, is here to stay thanks to the thousands of apps and other cryptocurrencies that are powered by its blockchain.
Market cap: $46.7 billion
The Binance Coin (BNB) is a utility token that can be used on the Binance exchange to pay trading costs and earn discounts on trades. Even outside of the Binance cryptocurrency exchange, you are able to utilise BNB for payment processing, such as when arranging trip reservations.
Some individuals believe that Binance Coin (BNB) is not as decentralised as other alternative cryptocurrencies. A purported investigation by the Securities and Exchange Commission (SEC) into whether or not Binance should have registered BNB as a securities during its initial coin offering presents another potential concern.
Market cap: $20 billion
Ripple Labs, a firm that specialises in digital technologies and payment processing, allows customers to utilise XRP to conduct currency transactions of a variety of various forms. Critics point out that even if this alternative cryptocurrency has incredibly cheap transaction fees, it still faces legal issues.
Ripple and two of its executives are being sued by the Securities and Exchange Commission (SEC) on allegations that they failed to register XRP as a security, despite the fact that Ripple maintains that XRP is a currency.
Market cap: $13.5 billion
Dogecoin is widely regarded as the first cryptocurrency to be inspired by internet memes. It was created in 2013 as a joke. Despite this, it has fast become a prominent cryptocurrency because to a community that is committed to the cause and memes that are innovative.
Richard Gardner, the Chief Executive Officer of Modulus Global, a company that develops financial software, notes that while having some significant sponsors, DOGE is still considered to be a riskier investment than Bitcoin.
“Altcoins like DOGE can fluctuate to extreme lows and highs depending on market volatility since they have yet to prove real-world use cases,” says Garry Krugljakow, founder of 0VIX Protocol, a decentralised app that enables crypto lending and borrowing. DOGE is one example of an altcoin. “Altcoins like DOGE can fluctuate to extreme lows and highs depending on market volatility.”
Market cap: $10.8 billion
Cardano was an early adopter of the proof-of-stake consensus mechanism, which shortens the amount of time it takes to complete a transaction by eliminating the element of competition and energy-intensive problem-solving that is inherent to platforms such as Bitcoin.
According to Holmes, Cardano is a thought leader in the industry and has been instrumental in paving the way for proof of stake consensus techniques. “ADA is a blockchain solution that promises minimal costs with greater levels of security than many of its competitors,” according to the white paper.
But according to Daniel Logvin, the CEO of LedgerByte, a blockchain network provider and consulting, the alternative cryptocurrency promised too much and has not yet delivered.
Market cap: $8 billion
Polygon is a scaling platform that is built on Ethereum that enables developers to construct decentralised applications (dApps) while keeping transaction fees to a minimum.
Logvin explains that it makes it possible for users to perform transactions on top of the Ethereum network. “By implementing this approach, we can enhance productivity while also lowering our overall gas costs” On Polygon, the transaction costs known as gas fees are often lower than those on Ethereum.
Market cap: $6.1 billion According to Max Thake, co-founder of peaq, a blockchain network built on Polkadot, this alternative coin is the driving force behind the Polkadot ecosystem. In this ecosystem, developers are able to build specific-purpose blockchains that connect to the main Polkadot blockchain hub by acting as spokes. The Polkadot platform uses the DOT token as its default currency.
According to him, “there is a consistent demand for DOT from initiatives that intend to build on Polkadot.”
According to James Wo, CEO of the blockchain and cryptocurrency investment business Digital Finance Group, this alternative cryptocurrency has greater shared security, and it also leads the pack in terms of developer activity and the number of projects. But the development of the project has been sluggish, and he claims that there are no star apps to assist promote the ecosystem.
Market cap: $ 5.06 billion
Another meme coin, this one is similar to DOGE. The “Dogecoin killer,” as it has been dubbed, is a joke inside a joke. Even though it is built on the Ethereum blockchain, Shiba Inu is not an altcoin that you should invest in for a use case. However, there are SHIB-based non-fungible tokens (NFTs) that are now available on the market.
That doesn’t imply there isn’t a business justification for investing though. With such a highly volatile crypto asset, speculators have a good chance of either making or losing all of their money.
Market cap: $5.01 billion
Tron is a blockchain platform that allows developers to construct decentralised applications and share audiovisual assets with one another. In addition to this, TRX has a solid total value locked (TVL), which refers to the amount of money placed in decentralised finance. The entire value of crypto assets that have been placed in a decentralised finance (DeFi) system, such as for staking, lending, or liquidity pools, is referred to as TVL.
A high TVL shows that a protocol is popular and that a specific coin is adapting quickly to new features. According to DeFi Llama, TRX’s TVL is now worth $5.2 billion at the present time.
Market cap: $4.9 billion
Solana was designed to facilitate the powering of decentralised finance and applications in addition to smart contracts. It utilises a one-of-a-kind hybrid proof-of-stake and proof-of-history method to execute transactions in a speedy and safe manner.
One of the blockchains that competes in terms of speed is Solana. Whitney Setiawan, a research analyst with the digital assets exchange Bitrue, adds that despite this, it has also been criticised for being excessively centralised and having too few validating nodes in comparison to Ethereum.
Holmes claims that Solana is a highly scalable blockchain system with very cheap costs, despite the fact that it has had failures and unavailability.
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