Top Altcoins of 2023

Bitcoin is the main cryptocurrency in terms of user base, capitalization, and popularity. Since 2009 many altcoins have been introduced for those interested in other cryptocurrencies. However, most altcoins hold little value. Some undergo less trading. Currently, the efficiency of these altcoins is increasing. 

Overview of Altcoins

• Ethereum

The market capitalization of Ethereum was $198 billion. In 2015, Ethereum was launched. Therefore, it was the first altcoin that has gained large popularity. Even in 2023, Ethereum is next to Bitcoin. The market capitalization of this altcoin is 19% of the global cryptocurrency market. However, there are considerable differences between Bitcoin and Ethereum. Ether is the main native cryptocurrency of the Ethereum network. In 2022, Ethereum changed from a less energy-intensive proof-of-stake transaction verification system. Henceforth, this makes Ethereum a more scalable and greener network.

• Binance (BNB)

Crypto exchange Binance is a utility token built on the Ethereum network. The market capitalization of BNB was around $34 billion. BNB can be used for a wide range of transitions and other use cases. Thus, it includes access to trading fees on the Binance exchange. Currently, BNB’s credibility is under question. This is because the US Securities and Exchange Commission has sued Binance for violating security laws.

• XRP

Ripple network has its native cryptocurrency called XRP. Hence, it is an international payments network. It is an alternative to SWIFT. SWIFT is a payment network system that is used to transfer money among themselves. However, Ripple claims that it has faster technology than the SWIFT system. It is also cheaper and more transparent than the SWIFT system.

The XRP uses a consensus mechanism and uses proof-of-work and proof-of-stake consensus. Thus, the client application sends and signs transactions to the ledger servers. These servers can compare the transactions. XRP’s credibility has increased when the crypto is necessarily a security.

• Cardano (ADA)

Cardano (ADA) is a blockchain launched in 2017. It can offer a better system than Ethereum, Bitcoin, and other proof-of-work blockchains. ADA is the main cryptocurrency that facilitates transactions and runs applications. ADA is the main cryptocurrency yet, Cardano can also use ADA to earn extra tokens via staking. Therefore, it helps to verify the network’s transactions and makes blockchain more secure.

Cardano created its blockchain through peer-reviewed research and extensive experimentation. However, it is still in its early stages and has a long way to go to choose DeFi applications. ADA also has the option of offering solutions for better interoperability. Therefore, it can detect legal contracts, and voter fraud. Cardano as of July 2023, has the seventh-largest market capitalization at $109 billion.

• Solana

Solana is one of the newest altcoins in the world. It has many non-fungible tokens. The unique thing about Solana is that it was a hybrid proof-of-stake. Hence, it also has a proof-of-history verification system. This makes it cheaper and faster than the Ethereum network. Thus, the price of Solana has risen considerably. Unfortunately, the reputation of this altcoin is at stake.

• Tron (TRX)

In 2017, Tron used blockchain technology to decentralize the internet. There are more than 177 million accounts affiliated with the network. TRX originally was an Ethereum-based token in 2018. The Tron specializes in multimedia apps and decentralized entertainment. Therefore, the network  facilitates casino gambling and blockchain gaming.

• Polkadot (DOT)

Ethereum’s co-founder Gavin Wood launched Polkadot in 2020. The main aim of the protocol is to link different blockchains. Thus, the Polkadot network features many unique parachains. These para chains take much of the processing demand because of the Polkadot chain. Hence, Polkadot’s nominated proof-of-stake involves nominators financially as a show of trust. The validators are a show of trust for integrity.

• Litecoin (LTC)

Google engineer Charlie Lee created Litecoin in 2011. Litecoin is based on the source code of Bitcoin. Therefore, it also uses a similar proof-of-work transaction verification system. Currently, this altcoin has a maximum supply of 84 million coins. The network generates new transactions after every 2.5 minutes.

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Conclusion

The altcoins are options for those who are interested in investing in cryptocurrencies other than Bitcoin. Each alternative cryptocurrency has some uniqueness in it. However, to date, no altcoin has succeeded in becoming more popular than Bitcoin. Therefore, in the future, market factors may become more favorable for altcoins. Investors should understand the unique risks of investing in altcoins.