The 5 Most Popular Cryptocurrencies on the Market Right Now

you might think so Dogecoin And Shiba Inu They will be sitting on top of the cryptocurrency world and all the hype they are getting. But that’s not the case – at least it doesn’t depend on where investors are actually putting their money.

The most objective way to determine the best cryptocurrencies is to look at the extremes of the market. For digital currencies, the market cap is calculated by multiplying the current price by the circulating supply. Here are the five most popular cryptocurrencies on the market right now, according to CoinMarketCap.

Image source: Getty Images.

1. Bitcoin

There is absolutely no surprise in that Bitcoin (CRYPTO: BTC) It still reigns as the world’s most popular cryptocurrency. Its market capitalization is currently around $1.1 trillion. If Bitcoin was a company, it would be greater than ID pads (formerly known as Facebook) and Tesla.

Bitcoin continues to have the advantage of being the first cryptocurrency. It is more widely accepted than any other digital currency, mainly because it has been around for a longer time. Some investors even view Bitcoin as a good way to hedge against inflation since there will be no more than 21 million Bitcoins in circulation.

2. Ethereum

Ethereum (CRYPTO: ETH) It ranks as number 2 somewhat far from Bitcoin in the list of the most popular cryptocurrencies. Its market capitalization is around $500 billion, less than half the size of Bitcoin. But some believe that Ethereum will be the next Bitcoin.

The main advantage of Ethereum is its real-world utility. Its blockchain supports smart contracts that can be used in a wide variety of applications. In particular, Ethereum is well suited for creating non-fungible tokens (NFTs). Whether or not the cryptocurrency will push Bitcoin out of the top spot in the future, it seems that Ethereum is well positioned to stand the test of time.

3. Binance Coin

Binance operates the largest cryptocurrency exchange in the world. It is logical, therefore, that Binance coin (CRYPTO: BNB) It is the third most popular digital currency in the market. It is the original coin of the Binance exchange and currently has a market capitalization of over $96 billion.

Investors who pay transaction fees with Binance Coin get discounts. Every quarter, Binance reduces the supply of cryptocurrencies based on trading volume. Over time, these quarterly metal “burns” will remove 100 million coins, which is half of the total supply. These moves are aimed at increasing the value of Binance coin.

4. Rope

Rope (CRYPTO: USDT) It ranks fourth among the most popular cryptocurrencies in the world. Its market capitalization is around $73 billion. But among the stablecoins, Tether is the most prominent. All stablecoins peg their value to another asset. For Tether, this asset is the US dollar.

In theory, Tether is like a “crypto dollar” that should maintain its value in a similar way to the physical US dollar. However, there has been some debate over whether Tether has enough reserves to back all of its digital currencies. The US Treasury recently called on Congress to take action to address the risks to the economy from stablecoins like Tether.

5. Solana

Solana (CRYPTO: SOL) Completes our list of the top five most popular cryptocurrencies. It currently has a market capitalization of around $65 billion. Solana has been the biggest winner in the top cryptocurrency over the past year with a gain of over 10,000%.

Many investors flocked to Solana as an alternative to Ethereum. Both blockchains support smart contracts. However, Solana offers much faster processing speeds and lower transaction fees than Ethereum.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Leave a Comment