Top Cryptocurrencies In 2021
1. Bitcoin (BTC)
The world’s first cryptocurrency is the most established and the most valuable with a market capitalization (market cap) of £523b, leading the way for others to follow . Created in 2009 by someone under the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.
Market cap: Over $653 billion
As of June 2021, a single Bitcoin’s price was over $32,000. That’s growth of about 6,300%. It may be the oldest cryptocurrency but it’s market dominance is as vibrant as ever.
2. Ethereum (ETH)
Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Market cap: Over $307 billion
Ethereum has also experienced tremendous growth. In just five years, its price went from about $11 to over $2,500, increasingly roughly more than 22,000%. Founded much later than its rival, in 2015, Ethereum has a smaller market cap of $307b.
3. Litecoin (LTC)
Litecoin, launched in 2011, was among the first cryptocurrencies to follow in the footsteps of Bitcoin and has often been referred to as “silver to Bitcoin’s gold.” It was created by Charlie Lee, an MIT graduate and former Google engineer.
Market cap: Over $8.272 billion
Litecoin is based on an open-source global payment network that is not controlled by any central authority and uses “scrypt” as a proof of work, which can be decoded with the help of consumer-grade CPUs. Although Litecoin is like Bitcoin in many ways, it has a faster block generation rate and hence offers a faster transaction confirmation time. Other than developers, there are a growing number of merchants that accept Litecoin. As of January 2021, Litecoin has a market capitalization of $10.1 billion and a per-token value of $153.88, making it the sixth-largest cryptocurrency in the world.
4. Binance Coin (BNB)
Binance Coin is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. Those who use the token as a means of payment for the exchange can trade at a discount. Binance Coin’s blockchain is also the platform that Binance’s decentralized exchange operates on. The Binance exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes.
Market cap: $6.8 billion
Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually had its own mainnet launch. The network uses a proof-of-stake consensus model. As of January 2021, Binance has a $6.8 billion market capitalization with one BNB having a value of $44.26.
5. Bitcoin Cash (BCH)
Bitcoin Cash (BCH) holds an important place in the history of altcoins because it is one of the earliest and most successful hard forks of the original Bitcoin. In the cryptocurrency world, a fork takes place as the result of debates and arguments between developers and miners. Due to the decentralized nature of digital currencies, wholesale changes to the code underlying the token or coin at hand must be made due to general consensus; the mechanism for this process varies according to the particular cryptocurrency.
Market cap: $8.9 billion
BCH began its life in August 2017 as a result of one of these splits. The debate that led to the creation of BCH had to do with the issue of scalability; the Bitcoin network has a limit on the size of blocks: one megabyte (MB). BCH increases the block size from one MB to eight MBs, with the idea being that larger blocks can hold more transactions within them, and the transaction speed would therefore be increased. It also makes other changes, including the removal of the Segregated Witness protocol that impacts block space. As of January 2021, BCH has a market capitalization of $8.9 billion and a value per token of $513.45.
6. Tether (USDT)
Unlike some other cryptos, Tether is known as a stablecoin which aims to maintain stable cryptocurrency valuations across the market.
It has consistently kept a price of around $1 US dollar, equivalent to 71p GB pound sterling today, and has an appeal from investors who want to avoid the extreme volatility of the market.
Market cap: $62 billion
Launched in 2014, Tether describes itself as “a blockchain-enabled platform designed to facilitate the use of fiat currencies in a digital manner.” Effectively, this cryptocurrency allows individuals to utilize a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity often associated with digital currencies. As of January 2021, Tether is the third-largest cryptocurrency by market capitalization, with a total market cap of $24.4 billion and a per-token value of $1.
7. Dogecoin (DOGE)
Dogecoin has been a hot topic thanks to celebrities and billionaires like Elon Musk. Famously started as a joke in 2013, Dogecoin rapidly became a prominent cryptocurrency option, thanks to a dedicated community and creative memes. Unlike many other cryptos, such as Bitcoin, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.
Market cap: $44 billion
Dogecoin’s price in 2017 was $0.0002. By June 2021, its price was at $0.32 --- a 159,900% increase.
8. XRP (XRP)
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.
Market cap: $42 billion
At the beginning of 2017, the price of XRP was $0.006. As of August 2021, its price reached $1.14, equal to a rise almost 19,000%.
9. Cardano (ADA)
Cardano is an “Ouroboros proof-of-stake” cryptocurrency that was created with a research-based approach by engineers, mathematicians, and cryptography experts. The project was cofounded by Charles Hoskinson, one of the five initial founding members of Ethereum. After having some disagreements with the direction Ethereum was taking, he left and later helped to create Cardano.
Market cap: $77.7 billion
Its founder Charles Hoskinson estimates that Cardano’s entire system uses less than 0.01% of the energy consumed by Bitcoin’s network and controversial mining process.
And, as a result, has seen a 40.11% increase over the past week and 125.85% increase in its value over the past month, despite blips brought on by the overall market’s experience.
10. Polkadot (DOT)
Cryptocurrencies may use any number of blockchains; Polkadot (and its namesake crypto) aims to integrate them by creating a cryptocurrency network that connects the various blockchains so they can work together. This integration may change how cryptocurrencies are managed and has spurred impressive growth since Polkadot’s launch in 2020. Between September 2020 and August 2021, its price grew 774%, from $2.93 to $25.61.
Market cap: $26 billion
11. USD Coin (USDC)
Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.
Market cap: $25.5 billion
12. Stellar (XLM)
Stellar is an open blockchain network designed to provide enterprise solutions by connecting financial institutions for the purpose of large transactions. Huge transactions between banks and investment firms—typically taking several days, involving a number of intermediaries, and costing a good deal of money—can now be done nearly instantaneously with no intermediaries and cost little to nothing for those making the transaction.
While Stellar has positioned itself as an enterprise blockchain for institutional transactions, it is still an open blockchain that can be used by anyone. The system allows for cross-border transactions among any currencies. Stellar’s native currency is Lumens (XLM). The network requires users to hold Lumens to be able to transact on the network.
Stellar was founded by Jed McCaleb, a founding member of Ripple Labs and developer of the Ripple protocol. He eventually left his role with Ripple and went on to cofound the Stellar Development Foundation. Stellar Lumens have a market capitalization of $6.1 billion and are valued at $0.27 as of January 2021.
Market cap: $7.5 billion
13. Chainlink
Chainlink is a decentralized oracle network that bridges the gap between smart contracts, like the ones on Ethereum, and data outside of it. Blockchains themselves do not have the ability to connect to outside applications in a trusted manner. Chainlink’s decentralized oracles allow smart contracts to communicate with outside data so that the contracts can be executed based on data that Ethereum itself cannot connect to.
Chainlink’s blog details a number of use cases for its system. One of the many use cases that are explained would be to monitor water supplies for pollution or illegal syphoning going on in certain cities. Sensors could be set up to monitor corporate consumption, water tables, and the levels of local bodies of water. A Chainlink oracle could track this data and feed it directly into a smart contract. The smart contract could be set up to execute fines, release flood warnings to cities, or invoice companies using too much of a city’s water with the incoming data from the oracle.
Market cap: $8.6 billion
Chainlink was developed by Sergey Nazarov along with Steve Ellis. As of January 2021, Chainlink’s market capitalization is $8.6 billion and one LINK is valued at $21.53.
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