Top 12 Cryptocurrencies You Must Know

Cryptocurrencies have changed the world of finance perhaps, forever. Given the seemingly unlimited potential in this novice and under-regulated field, everyday, crypto enthusiasts are coming up with new coins. How do we know which one is the best?

A good indicator to judge cryptocurrencies is by comparing their market capitalization. For any cryptocurrency like Bitcoin, or Ethereum, the Market Capitalization(or Market Cap) refers to the total value of all the coins that have been mined till date. It can be calculated using the number of coins presently in circulation with the currency price of a single coin.

Let’s review the top 12 cryptocurrencies by market cap.

Top 12 Cryptocurrencies

1. Bitcoin (BTC)

Standing with a market cap of $745Billion, where each bitcoin is worth about $39,000, Bitcoin is undoubtedly the most popular cryptocurrency. It was created in 2009 and is responsible for the crypto revolution since 2017 when it became popular almost overnight. However, the maximum of bitcoins that can be mined is capped at almost 21million.

2. Ethereum (ETH)

Ethereum is currently the second most popular cryptocurrency platform with a market cap of almost half the value of that of Bitcoin, i.e., $310Billion and each ETH(ether) is worth about $2,500. The main reason for its popularity is the use of smart contracts on the ethereum platform which use ether as a currency for execution .

3. Tether USD (USDT)

Tether is one of a kind cryptocurrency with a market cap of $80Billion, but it’s different because tether’s price is fixed at $1 per coin. Such coins are called stablecoins, as their value is tied to an asset (which here, is the U.S. Dollar).

4. Binance Coin (BNB)

Binance coin is the cryptocurrency by the popular crypto exchange Binance, and has a market cap of $63Billion presently where each coin is worth about $377. This coin was originally created to pay for discounted trades but today, it can also be used for sale and purchase of goods and services.

5. USD Coin (USDC)

Similar to Tether, the USD Coin is also a stable coin anchored with the US Dollar, thus its value cannot fluctuate, however its market cap stands at $52Billion. The founders of this currency claim that the coin is backed by assets held in accounts with regulated U.S. institutions.

6. Ripple (XRP)

Created in 2012, today each XRP is worth $0.73 and the total market cap is $35Billion. XRP offers a unique way to pay different real world currencies and execute cross-border transactions. It employs a trust-less mechanism to facilitate payments.

7. Terra (LUNA)

The Terra cryptocurrency platform uses the cryptocurrency LUNA with a market cap of $36 Billion, and each coin being worth $99. Terra actually helps backstop a range of stable coins based on real currencies like the dollar or euro. It supports smart contracts and even helps stabilise the price of coins like Tether and USD Coin by technical means.

8. Solana (SOL)

Despite being a relatively novel crypto platform, the Solana cryptocurrency which was launched in 2020, flaunts amazing speed and stands with a market capitalization of $26Billion where each SOL costs $81.30. Like Bitcoin, the issuance of the SOL is capped at 480 million coins.

9. Cardano (ADA)

Cardano is the cryptocurrency platform behind the crypto ADA with a market cap of $25Billion with each ada worth about $0.79. Just like Ethereum it also supports smart contracts and enables identity management.

10. Polkadot (DOT)

Polkadot is also a relatively new cryptocurrency which connects the blockchain from many different cryptos. Today its market cap is close to $20Billion where each coin is worth about $18. It is also considered a plausible rival to the crypto mega-giant Ethereum.

11. Avalanche (AVAX)

Avalanche, some other cryptographic protocol platform that people see as a potential Ethereum alternative, rounds out our top ten list. The most likely scenario is that three of the six smart contract platforms will emerge ahead of the pack, which include several of the cryptocurrencies on this list.

12. Dogecoin

This coin was created as a joke, and even the co-founder is taken aback by its success. Its value skyrocketed due to Elon Musk’s endorsement, but experts say its nature ensures that it will not skyrocket again in the future.

Other popular cryptocurrencies

1. Litecoin (LTC)

Launched in 2011, this was among the first cryptocurrencies to follow in the footsteps of Bitcoin and has often been referred to as “silver to Bitcoin’s gold.”11

It was created by Charlie Lee, an MIT graduate and former Google engineer and is based on an open-source decentralised global payment network which uses PoW. Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and thus offers a faster transaction confirmation time.

Other than developers, there are a growing number of merchants that accept Litecoin. As of March 14, 2022, Litecoin has a market capitalization of $7.4 billion and a per token value of around $106, making it the 21st-largest cryptocurrency in the world.

2. Bitcoin Cash (BCH)

This holds an important place in the history of altcoins because it is one of the earliest and most successful forks of the original Bitcoin. (In the cryptocurrency world, a fork refers to the split of the digital currency and occurs because of arguments between developers and miners.)

BCH began its life in August 2017 because of a debate about the issue of scalability; the Bitcoin network has a limit on the size of blocks: 1 megabyte (MB). BCH increases the block size from 1MB to 8MBs, with the idea being that larger blocks can hold more transactions within them, and the transaction speed would therefore increase.It also makes other changes, including the removal of the Segregated Witness protocol that impacts block space.

As of March 14, 2022, BCH has a market capitalization of around $5.5 billion and a value per token of $286.97.

3. Polygon

Polygon is one of the top cryptocurrencies for building and connecting Ethereum-compatible blockchain networks. It provides scalable solutions on Ethereum, supporting a multi-chain Ethereum ecosystem. Many crypto investors believe that Polygon has great potential and will give higher returns in the future.

4. Monero (XMR)

It is a secure, private, and untraceable currency. This open-source cryptocurrency was launched in April 2014. It soon gained great interest among the cryptography community and its enthusiasts as its development is completely donation-based and community-driven.

Monero boasts of exceptional security mechanisms, which has developed something of an unsavoury reputation—it has been linked to criminal operations around the world. Though this is a prime candidate for making criminal transactions anonymously, the privacy inherent in Monero is also helpful to dissidents of oppressive regimes around the world.As of March 14, 2022, Monero has a market capitalization of $3.3 billion and a per-token value of $181.32.

5. Stellar (XLM)

This is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. The system allows for cross-border transactions among any currency. Stellar’s native currency is Lumens (XLM).The network requires users to hold Lumens to be able to transact on the network.

Stellar Lumens have a market capitalization of about $4.4 billion and are valued at around 18 cents as of March 14, 2022.

6. Shiba Inu

After gaining popularity in 2021 as a memecoin, Shiba Inu held the ground in 2022 as well. Last year, it briefly overtook Dogecoin, the native memecoin, and even entered the top 10 list. Crypto investors are keeping high hopes with Shiba Inu which makes it one of the most promising cryptocurrencies of March 2022.

Which Cryptocurrencies were dropped from the top 12?

Bitcoin and Ethereum have continuously occupied the top two positions. However, due to volatility the rest of the top 12 keep changing continuously. As one coin rises in value, another may fall further down the list. It’s a great reminder that virtual currencies can cause economic loss as well as continue to gain. These coins were among the top 12 on January 1st 2022, but they no longer rank as high:

• Litecoin (LTC)
• Bitcoin Cash (BCH)
• Linking Chains (LINK)

Cryptocurrency is a fast-paced world, and research is crucial if you want to stay ahead of the curve. It is not recommended to just buy one of several top 12 tokens because of how much it has risen in value this year. Instead, searching for coins that will be in the top ten next year – or even the next decade is worth the investment.

Why Are Cryptocurrencies Important?

Blockchain-based cryptocurrencies are decentralised platforms that allow individuals to engage in peer-to-peer financial transactions or enter into contracts. In either case, there is no need to trust a third-party intermediary like a bank, monetary authority, court, or judge. This has the potential to disrupt the existing financial order and democratize finance.

Why Are There So Many Cryptocurrencies?

The majority of cryptocurrencies today are derived in some form or another from Bitcoin. This uses open-source code and a censorship-resistant architecture. This means that anybody can copy and tweak the code and make their own coin. This also means that anybody is free to join its network or transact in it. The decentralized nature and popularity make it a must-have in today’s time.

What Are Some Other Important Cryptocurrencies?

Many cryptocurrencies have gained importance or hold the promise to do so. Dogecoin, for example, was a meme-based joke coin that reached fame when Tesla CEO Elon Musk promoted the token on social media. Aside from Dogecoin and the others listed above, several other Bitcoin forks also exist, such as Bitcoin gold and Bitcoin SV.

Why Is Bitcoin Still the Most Important Cryptocurrency?

Popularly called as the original cryptocurrency, Bitcoin is still thriving as the king of the world of cryptos despite 100s of competitive coins, it remains the dominant player in terms of usage and economic value. Each coin (BTC) was worth roughly $44,000 as of February 2022, with a market capitalization of more than $830 billion.31

Future Scope

The world’s crypto market is very volatile at the moment, what might be at the top today may be nowhere in the next 6 months. With governments worldwide working on crypto regulations, the future seems a little uncertain because administration changes will directly affect the market.

Conclusion

In this article, we learnt about market capitalization. We discussed some of the most popular cryptocurrencies according to their market cap whilst also learning about the risks involved.