There are hundreds of cryptocurrencies out there, with new ones mushrooming every day and old ones disappearing seemingly just as fast as they appeared. It is reasonable for crypto investors to get overwhelmed by digital currencies as many fairytales and nightmares emerge from the market. Following the inception of Bitcoin, synonymous with cryptocurrencies, the digital coin sphere gained much traction. In a span of few months, digital currencies skyrocketed in value, interest, and numbers, only to see their values plummet once again, before leaving off. Fortunately, crypto investors are aware of this unstable and volatile situation. However, one thing that can't drastically fall is their market capitalization. Cryptocurrencies' market capitalization varies from time to time based on the price of the underlying trends. It is also an important concept crypto investors take into account before investing in a cryptocurrency. They represent the number of cryptocurrency assets bought by people from across the globe. Analytics Insight has listed the top 10 cryptocurrencies with the highest market capitalization today.
Market Capitalization: US$615.61 billion
Bitcoin, the household name that became the synonym of cryptocurrency, was created with a motive to decentralize distribution, trade, and storing. The bitcoin market is highly volatile with sudden surges and plummets. In 2017, the digital currency was traded at US$20,000. Just in a year, the price fell to half of its previous value. Despite its instability, Bitcoin has made a remarkable stance in the cryptocurrency market and also inspired crypto investors to try their hand on other cryptocurrencies. Unfortunately, Bitcoin's recent market trend is not impressive. Following Elon Musk's decision to not accept Bitcoin at Tesla and China's crackdown on Bitcoin mining, the digital currency is hitting the ground hard. However, crypto enthusiasts say that this is a temporary fall of Bitcoin and it will return with an even stronger ground in the cryptocurrency market.
Market Capitalization: US$290.32 billion
Ethereum, supported by the Ethereum platform, is a blockchain-based cryptocurrency. Digital currency is considered a safe place to invest compared to other cryptocurrencies because of the blockchain platform that handles it. Ethereum is a decentralized public ledger for verifying and recording transactions. In the current market scenario, Ethereum is having a tough fight with Bitcoin. Following the fall of Bitcoin, Ethereum is getting a stronghold in the digital currency market. The digital currency's 10-day average trading volume has doubled toward 80% of Bitcoin's from the start of 2021. Crypto enthusiasts predict that it won't be long until Ethereum takes over Bitcoin in market capitalization.
Market Capitalization: US$62.32 billion
Tether, a blockchain-based cryptocurrency, is backed heavily by an equivalent amount of traditional fiat currencies like the dollar, the euro, or the Japanese yen, which are held in a designated bank account. Formerly known as Real coin, Tether was launched by Tether Operations Limited in 2014. Unlike many cryptocurrencies, Tether is designed as a stablecoin that is attested to real-life assets or commodities to ensure stability in value and lower volatility in the market. Even though the digital currency saw wide purchase and exchange over the past few years, the questions on its reserves with the US dollar remain unanswered. Recently, Tether has extended its wings into Avalanche blockchain.
Market Capitalization: US$53.39 billion
Since the beginning of 2021, Binance Coin saw a drastic surge in value. The digital currency has put itself at the forefront as Bitcoin and Ethereum's challenger. Remarkably, following the attraction that Binance Coin has got, many crypto investors also bought Binance Coin to try their hand on the fourth-largest cryptocurrency by market cap. However, that doesn't make the digital currency break its US$433 record. Elon Musk and Bitcoin's break-up also had a negative impact on Binance Coin, dropping the cryptocurrency's price by 15% to US$365.48 this week. Fortunately, the digital currency also bounced back to its rate immediately and is maintaining stable ground.
Market Capitalization: US$48.88 billion
Cardano, the proof-of-stake blockchain currency, shares characteristics and applications with other blockchain platforms like Ethereum. The altcoin has been performing well since last week. Recently, big crypto investors also picked Cardano as their top choice, thanks to all the promising developments that the cryptocurrency has made in the past months. Cardano core team is looking to join the functional ranks of Ehterum and other competitors with its planned implementation of smart contracts. Even though the coin is priced at just US$1.85, its value surged over ten times since the beginning of 2021.
Market Capitalization: US$41.90 billion
How far can a meme go? A question that got an exclusive answer from the digital currency market. Dogecoin emerged as a breakthrough cryptocurrency after the 'doge' internet meme, featuring a Shibu Inu dog went viral. Founded in 2013, the digital currency has outperformed top rivals in the past few weeks and is now standing in the top 10. Over the past one week, Dogecoin's price advanced by 24%, comparing to Bitcoin and Tether that saw a 6.2% and 14.9% spike respectively. Tesla CEO, Elon Musk, is the biggest booster of Dogecoin. His constant tweets and remarks on the cryptocurrency have contributed highly to its price surge.
Market Capitalization: US$39.53 billion
XRP is a cryptocurrency that runs on the XRP ledger, a blockchain engineered by Jed McCaleb, Arthur Britto, and David Schwartz. Unfortunately, digital currency is not performing well in the market. Recently, in a single day, Ripple's price fell by 10.77%, marking the largest one-day surge since its inception. This has eventually brought down the market cap by 2.60%. Ripple is also on a tough court fight with the US Securities and Exchange Commission (SEC) to prove that XRP sales are beyond the jurisdiction of the US watchdog.
Market Capitalization: US$23.04 billion
USD Coin (USDC) is a stable coin pegged to the value of US$1, so it makes it easy to sell users' crypto assets for virtual fiat currencies. Even though the digital currency's price is not appealing, its stability and coordination with the market rate make it worth a try. Recently, Visa announced its plans to settle transactions in USDC on the Ethereum blockchain. Today, many crypto investors use USDC to interact with decentralized finance (DeFi) programs.
Market Capitalization: US$19.96 billion
Polkadot is a recently launched cryptocurrency that made it into the top 10 list. Created by Ethereum's co-founder, Gavid Wood, in 2020, the digital currency expands on the functionality of its predecessors with the goal of building a decentralized internet. Compared to Bitcoin and Ethereum that can process roughly three transactions per second, Polkadot can process more transactions in parallel. Recently, an Asian blockchain incubator and venture capitalist announced that it had launched a US$30 million venture capital fund called Master Ventures Polkadot VC Fund.
Market Capitalization: US$13.40 billion
Uniswap is one of the major decentralized crypto exchanges that run on the Ethereum blockchain. The digital currency differs from others as it is owned and operated by a single entity, and uses a relatively new type of trading model called an automated liquidity protocol. However, there are speculations that a severed bug could cause Uniswap significant issues and is creating problems for those that list there.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.