Although there are tons of cryptocurrencies, more than 5,000 according to major listing websites, most of them aren’t used and are considered irrelevant.
Despite the presence of a plethora of different cryptocurrencies. The cryptocurrency market is dominated by the top 10 coins. Today, we will be looking at the many different cryptocurrencies that exist and how profitable these businesses may or may not be. Keep reading!
Market Capitalization of the Top Cryptocurrencies
There are many different types of cryptocurrencies with a wide range of market capitalizations. Before discussing which has the largest market cap, we need to take into account the fact that the top cryptos can change over time. Cryptocurrency markets are notoriously volatile and become more unpredictable the larger their market cap becomes.
Bitcoin
Bitcoins were a landmark in financial history and are still being used today. They were the first form of money not issued or owned by a central authority, and their underlying technology. Blockchain has changed and disrupted many industries.
Although solutions are developing to reduce. The cost of transactions allows for a more competitive currency. Bitcoin is still quite limited in terms of daily transactions. It is primarily treated as digital gold. With most use cases being as an investment rather than purchasing a product. Cryptocurrency is a great idea that has yet to be brought to market. It represents 66% of the total market capitalization, and its use is becoming more widespread as time goes on.
Ethereum
The crypto industry has seen several cryptocurrencies revolutionize. How they are seen by customers. One of these is Ethereum, which through its smart contract technology has brought a lot of value to the market and still does so today. Initial coin offerings got their start in 2015 when Ethereum launched. Smart contracts allowed transactions to be programmable, which added new layers of value to cryptocurrencies.
In the past, contracts may have been a balancing act between trusted third parties and self-executing contracts. However, with self-executing contracts these days, there is no need for this balancing act. This allows for decentralized applications and the upcoming ICO craze to take shape in today’s society. Many people see the value in ERC20 tokens due to their high liquidity and cost, inheriting all of the features of shares and other types of investments.
Ethereum 2.0 is scheduled for 2020, and the update promises to lay. The significant groundwork in terms of the future of blockchain technology.
XRP
Ripple’s XRP was created in 2012 and has been an open-source protocol designed as a global payment solution. That offers fast and cheap transactions. They are different from normal cryptocurrencies, as they do not require mining and 100 billion XRP will ever exist.
Blockchain has provided banks with affordable, reliable, and secure solutions for their banking needs in the face of rapidly evolving technology. However, the Ripple project has faced some criticism in recent years, mainly due to centralization concerns and a large percentage of XRP held by the company.
Bitcoin Cash
In 2017, a new type of blockchain called Bitcoin Cash (BCH) was created because the scaling debate had been ongoing for years. Claiming Bitcoin was meant to scale and be used on a digital scale via an on-chain solution. One of the warring factions demands bigger block sizes for Bitcoin to have a larger transactional capacity.
For several reasons – including centralization concerns – many in the community did not desire such changes to Bitcoin. Especially Bitcoin Core developers. Which envisioned the problem being solved with the off-chain Lightning Network. At the height of the community debate, Bitcoin went through a hard fork and produced a successor coin at its core, Bitcoin Cash. It became one of the most successful alternative coins.
Satoshi Nakamoto’s Bitcoin Vision (BSV)
One of the more controversial projects in crypto is Bitcoin Cash Satoshi’s Vision. It was created in 2018 as a result of a hard fork of the Bitcoin Cash network, and one year later. The community couldn’t reach a consensus.
One group desired to keep the block size of 32 MB and implement upgrades that departed from the original Bitcoin protocol. The name of the cryptocurrency, Bitcoin Cash, comes from a fork in the original blockchain created in August 2017 – the one with the first-ever Bitcoin white paper.
Many in the crypto community believe. That BCH is a scheme created by self-proclaim Bitcoin creators Craig Wright and CoinGeek. Recently, BCH outperformed BSV in terms of market cap, showing a massive rally some are claiming was orchestrated.
USDT is the currency of Tether
USDT is the only stable coin on the list and it is by far the most dominant one. It has been gaining a notorious reputation since its launch. With more than 80% of all BTC being trad against it.
Many have discussed the possible reasons for the sudden surge in the price of crypto. The use of a third-party payment system that does not have backing from the USD has sparked uncertainty over the value of USDT. USDT holders have watched the price of the token get destroyed over time. The platform itself has struggled to justify its value. As such, they are not confident in the system’s ability to reliably issue new tokens and it is unlikely that they will hold enough reserves in the future.
Litecoin
Litecoin is one of the oldest cryptocurrencies. Many compare Litecoin to silver like Bitcoin is compared to gold. Created by Charlie Lee in 2011. Litecoin is similar to Bitcoin, but has a different code and a greater transactional capacity, enabling a high number of transactions with lower fees. The supply is also larger and less rare.
EOS
EOS is a decentralized, smart contract platform that raised over $4.2 billion in 2018 for its first yearlong ICO. It is considered the “Ethereum killer” due to the similarities between the two platforms. But EOS offers some advantages like speed and security. EOS’s whole infrastructure was designed to allow the development, hosting, and execution of large-scale decentralized applications (dApps).
Ethereum’s network gets a lot of hype around its scaling features but at the cost of slower transaction speeds. Network costs might be higher with Ethereum but the project is worth it, as they boast greater capacity.
Binance Coin (BNB)
With around $2 billion in trading volume, Binance is one of the world’s largest cryptocurrency exchanges. The founder of the exchange, Changpeng Zhao, launched the BNB token in 2017 and aims to become a global exchange. Binance has grown significantly because it is not only conducting business on its own and in the cryptocurrency market, but by also funding its own growth.
BNB is one of the only cryptocurrencies. That wasn’t affected by the crypto winter, and we can find many reasons for this. It’s great to get hooked up with advanced features on Binance. You’ll also save on trading fees in some cases. Burning BNB tokens increase the scarcity of BNB tokens and consequently, their value.
Crypto Cash Flow is a term that refers to the amount of money that an individual or organization is able to generate from their cryptocurrency investments or activities.
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TRON’s TRX
Created in 2017 by Justin Sun, TRON is a decentralized platform designed to serve as a content distribution platform for the entertainment industry. The initiative was initially accused of plagiarism, citing many experts who warned early on. The whitepaper and certain lines in the TRON codebase were copied, but only in small portions.
TRON has proven to be innovative in its brand. They have created products and funds to bring attention to their brand. This year, they announced the creation of a $100 million block-chain gaming fund (TRON Arcade), and also partnered with BitTorrent Inc. In the future, BitTorrent tokens will fuel the success of the platform. It was created through an ICO on TRON and will help propel. It is forward in its next stage of development.
The TRON project is always looking to innovate and improve its services. They recently acquired the crypto exchange Poloniex. Which was used to launch the Polonidex decentralized exchange. Where TRX’s TRC-20 tokens are trad.
The cryptocurrency market has a total of around 5,100 cryptocurrencies in circulation at the current time, but the top five cryptos – Bitcoin, Ethereum, Bitcoin Cash, Ripple, and Litecoin – account for close to 90% of the market capitalization.
Why Do There Are So Many Cryptocurrencies?
The crypto industry is often rather confusing for newcomers, as there are thousands of cryptocurrencies in total. However, many find more clarity after researching the unique features and use cases of each one.
Cryptocurrency is open source and allows anyone to create their own cryptocurrency. Trading platforms such as Ethereum make it easier to focus on other important aspects of your company.
The ICO craze of 2017 created a lot of profits for those who were quick to act, especially in the cryptocurrency industry. This provided opportunities for lots of new companies to enter and for old ones like Facebook to change their rules.
Tokens for Decentralized Finance (Defi)
This includes centralized and decentralized systems. That can be used for financial transactions. Defi is an open blockchain platform that offers services such as loans using smart contracts and cryptocurrencies. They follow a trustless, transparent process so there’s no middleman anywhere.
Peer-to-peer lending platforms, where anyone can borrow and lend money from anyone else, decentralized prediction markets, where anyone can create their bets instead of the house determining what you can bet on, and decentralized stablecoins are just some examples of innovations happening in this new economy. Most blockchain platforms use tokens to track funds.
