When choosing investment options, many analysts recommend paying attention to the most popular cryptocurrencies. They set trends for the entire industry and are supported by the community, so they are able to stay afloat even during the global collapse of financial markets. ProstoCoin offers a look at the top 10 popular cryptocurrencies that show the highest trading volume on exchanges.
The most popular cryptocurrencies
Today, there are more than 7000 different cryptocurrencies on the market and the digital economy is still actively developing. At any moment, a new digital coin could be released, capable of breaking into the ranks of the most famous coins. For now, let’s take a look at the major cryptocurrencies of 2021 that are already in demand by traders and investors on cryptocurrency exchanges.
Tether (USDT) has relatively recently made the list of the most popular cryptocurrencies. The coin belongs to the category of stabelcoins – coins whose rates are backed by more stable assets. Tether is backed by the U.S. dollar at a 1:1 ratio. This eliminates volatility and makes the coin more convenient for payments and transactions.
Tether solves one of the main problems of cryptocurrencies associated with high volatility, which prevents their widespread use. The cryptocurrency is based on the Omni Layer protocol, using which users can exchange their USD to USDT and then make a reverse exchange to dollars.
Undoubtedly, Bitcoin (VTC) is still the main and most popular cryptocurrency. When a person unfamiliar with the industry hears the word “cryptocurrency,” the first thing that comes to mind is Bitcoin. Everyone already knows about Bitcoin, even those who have never been interested in new technologies.
The coin was created in 2009 by an unknown developer hiding under the nickname Satoshi Nakamoto. It was the creation of Bitcoin that triggered the emergence of new cryptocurrencies and such a rapid development of the entire industry. This gives it a worldwide recognition and fame that other coins do not have.
Bitcoin isn’t called “digital gold” for nothing. Today, there are more than 18 million coins in circulation and their value is higher than any other cryptocurrency. Bitcoin has a market capitalization of more than $320 billion, representing 65% of the total market capitalization.
Bitcoins are currently the most popular decentralized money. VTS coins can be paid for in a multitude of online stores and offline outlets. VTC is also a key asset on the cryptocurrency market. It sets trends for the whole industry, the value of other coins always follows the VTS, as if it acts as an indicator of the level of confidence in the whole market.
Despite its venerable age, Bitcoin is actively developing with the support of the community of leading developers. Bitcoin’s capabilities and popularity increase every day.
Ethereum cryptocurrency (ETH) is a coin of the decentralized blockchain-based application creation platform of the same name. Using smart contracts, Ethereum developers can easily launch decentralized applications (DApps) and their own cryptocurrencies. The launch of the platform in 2014 was a real breakthrough in the industry, allowing it to grow so rapidly.
And while Bitcoin is often compared to gold, Ethereum can be called the “digital analogue of oil,” as the coin is necessary for the platform to work. The use of ETH is being turned to:
Developers when they want to create their own project;
Investors who want to buy coins launched on the platform;
Traders who make money on exchange rate differences.
So far, Ethereum’s trading volume is almost half that of VTS, but the platform’s potential is high and is constantly attracting new investors.
The purpose of the development of the cryptocurrency Litecoin was to create a lightweight version of Bitcoin. Its developers, led by Charlie Lee, a former Google employee, have always positioned Litecoin as “digital silver. The coin differs from “digital gold” in its lighter hashing algorithm and high transaction processing speed. It takes 2.5 minutes to create a block on the network, compared to 10 minutes on the Bitcoin network.
Along with Bitcoin, the coin is accepted for payment by many merchants, is presented on all cryptocurrency exchanges and is actively used for private transactions.
Ripple ranks fourth in terms of capitalization, with a token price of less than $0.5. Unlike many other coins, Ripple is not a Bitcoin altcoin designed to create decentralized money. The Ripple network has a different goal – to provide users with free exchange of assets with instant transactions. The developers seek to create and develop a blockchain-based payment network that could be adopted by banks and other financial institutions.
The Ripple network protocol allows:
- make interbank payments similar to the notorious SWIFT system – with instant speed;
- Reduce transaction costs by 40-70%.
- The cryptocurrency’s functionality is not limited to this. Theoretically, based on the network, it is possible to create a global online market with instant exchange.
EOS is a platform for the creation of decentralized applications. The aim of the project is to make it as easy as possible for developers to master blockchain technology. The platform provides a number of tools and training materials for DApps creation. EOS aims to improve the interaction between users and companies and provide a more scalable network than other blockchains.
The EOS network was launched in 2018 and immediately sparked heated discussions in the community. Many analysts predict a grand future for the project. The platform’s success also affects the popularity of its namesake cryptocurrency, which fuels the system.
Chainlink (LINK) is a decentralized network of oracles designed to connect smart contracts with the real world. Chainlink oracles provide external data, such as weather, temperature, and asset values, needed to execute smart contracts. The developers of Chainlink claim that with accurate data from their network’s oracles, smart contracts can become more widespread and modernize all sectors of the economy.
Chainlink gained popularity mainly due to their active use in the Ethereum network and decentralized finance protocols. The LINK project coin is needed to conduct transactions on the network and is also a means of payment for providing data. Its key users are the developers of smart contracts that need data from the real world, as well as the communication nodes that are willing to transfer the necessary information for a fee.
Bitcoin Cash is a peer-to-peer cryptocurrency system that aims to become a reliable global alternative to conventional money. The cryptocurrency came about as a result of the hard fork of the Bitcoin network, when the transaction block size was increased from 1 MB to 8 MB.
The increased block size of Bitcoin Cash allows the network to process transactions faster while keeping fees low. Having solved Bitcoin’s problems, Bitcoin Cash quickly gained popularity among users and is now one of the top 10 coins by capitalization, as it is actively used for payments.
Ethereum Classic (ETC) is a hard fork of the Ethereum network that appeared in 2016. The network was created after the Ethereum DAO was hacked, when some users refused to switch to the new blockchain. Therefore, the ETC network can be called the original Ethereum blockchain, which is now maintained not by a group of developers, but by a decentralized community of users. The Ethereum Classic community is conservative in its views and tries to keep the original network unchanged as much as possible.
Ethereum Classic also supports the creation of decentralized applications and smart contracts. At the moment, the project already has a lot of DApps, as well as those that are in development. Due to this, the ETC cryptocurrency, which acts as a means of payment for the processing of smart contracts, is also popular.