In 2023, there are numerous cryptocurrencies available for purchase beyond just Bitcoin and Ethereum. However, with so many options to choose from, it can be difficult to decide without risking losses. To help guide investors, Business Insights has curated a list of the top 10 cryptocurrencies of 2023, based on their market capitalization – which represents the total value of all coins currently in circulation
Top 10 cryptocurrencies of 2023
What You Must Know Before Investing in Cryptocurrency.
Investors new to the world of cryptocurrency may find it challenging to determine which cryptocurrency to buy, and with the vast array of options and platforms available in 2023, the decision-making process can become even more complex. Therefore, it is crucial for beginners to gain an understanding of “How to Buy Cryptocurrency” and to perform thorough research on various cryptocurrencies and trading platforms to make informed investment decisions.
KEY POINTS
- Allocate time to gain knowledge on various currencies available, while also exploring consensus mechanisms and blockchain technology to make informed investment decisions.
- Comprehending the distinctions between hot and cold wallets is crucial; it is advisable to invest in both.
- Avoiding the influence of hype is one of the key obstacles for investors when dealing with cryptocurrencies.
- To ensure successful transfers, conduct trial transactions when transferring funds across networks.
- There are several beginner-friendly guides on blockchain technology, as well as technical white papers available for those interested in learning more.
1. Bitcoin (BTC)
Market cap: $575.9 billion
Bitcoin (BTC), introduced in 2009 by Satoshi Nakamoto, is widely considered the first and original cryptocurrency. Similar to most cryptocurrencies, BTC operates on a blockchain network, where transaction records are decentralized and verified by a distributed network of computers. This process ensures security through a cryptographic puzzle-solving technique called proof of work, which protects Bitcoin from fraudulent activities.
Since its inception, Bitcoin’s popularity has surged, and its value has soared exponentially. In May 2016, a single Bitcoin was valued at approximately $500. As of April 12, 2023, the price of one Bitcoin had risen to around $29,770, an increase of 5,854%. This significant growth further demonstrates the potential for investment opportunities in the cryptocurrency market.
2. Ethereum (ETH)
Market cap: $229.5 billion
Along with his founder Vitakik Buterin Ethereum is a popular blockchain platform and cryptocurrency that attracts programmers due to its versatile applications, including smart contracts and non-fungible tokens (NFTs). With smart contracts, the blockchain platform can execute specific actions automatically once the predefined conditions are met.
The price of Ethereum has experienced significant growth over the years. From April 2016 to the end of April 2023, its value surged from approximately $11 to around $1,906, marking a remarkable increase of 17,224%. This growth signifies the increasing popularity and adoption of Ethereum in the digital currency market.
3. Tether (USDT)
Market cap: $80.5 billion
Tether (USDT) is a type of cryptocurrency that differs from others in that it is a stablecoin. This means that it is backed by fiat currencies such as the U.S. dollar and the Euro, and its value is intended to remain stable at par with one of these denominations. The main advantage of this stability is that Tether’s value is expected to be more consistent than other cryptocurrencies, which makes it a preferred choice for investors who are cautious of the highly volatile nature of other coins.
4. Binance Coin (BNB)
Market cap: $50.5 billion
Binance Coin (BNB) is a popular form of cryptocurrency that has gained a significant following since its introduction in 2017. The coin is primarily used for trading and paying fees on Binance, which is considered one of the largest crypto exchanges globally. However, its utility has since expanded beyond Binance’s trading platform, and it can now be used for various purposes such as payment processing and even booking travel arrangements. Moreover, Binance Coin can also be traded or exchanged for other forms of cryptocurrency like Ethereum or Bitcoin.
Initially launched with a price of $0.10 in 2017, Binance Coin has since experienced substantial growth. As of late April 2023, its price has increased to around $320, representing an impressive gain of 319,672%.
5. U.S. Dollar Coin (USDC)
Market cap: $32.4 billion
Similar to Tether, USD Coin (USDC) operates as a stablecoin, which signifies that it is supported by U.S. dollars and endeavors to maintain a 1 USD to 1 USDC exchange rate. USDC is built on top of Ethereum and facilitates international transactions.
6. XRP (XRP)
Market cap: $26.0 billion
XRP is a cryptocurrency that was created by a group of founders who were also involved in the development of Ripple, a company focused on digital technology and payment processing. XRP can be used within the Ripple network to facilitate the exchange of various types of currencies, including fiat currencies and major cryptocurrencies.
In early 2017, XRP was valued at just $0.006 per unit. However, as of April 12, 2023, the value of XRP has soared to $0.50, marking an incredible increase of 8,299% over the past few years.
7. Cardano (ADA)
Market cap: $13.9 billion
Cardano (ADA) is a cryptocurrency that was introduced to the market later than many others but stands out for its adoption of proof-of-stake validation at an early stage. This innovative approach accelerates transaction processing times and reduces energy consumption and environmental impact by eliminating the competitive problem-solving aspect of transaction verification seen in other platforms such as Bitcoin. Cardano also functions like Ethereum to enable the execution of smart contracts and decentralized applications, which are powered by its native coin, ADA.
Despite relatively modest growth when compared to other major cryptocurrencies, Cardano’s ADA token has still experienced significant value growth. When first introduced in 2017, ADA’s value was only $0.02. However, as of April 12, 2023, its value had increased to $0.40, representing a growth of 1,903%.
8. Dogecoin (DOGE)
Market cap: $11.4 billion
Initially created as a joke in 2013, Dogecoin quickly gained traction as a prominent cryptocurrency thanks to its passionate community and creative use of memes. Unlike most other cryptocurrencies, there is no limit to the number of Dogecoins that can be produced, leaving the currency vulnerable to potential devaluation as the supply increases over time.
Back in 2017, the price of Dogecoin was a mere $0.0002 per coin. However, by April 2023, its value had surged to $0.08, marking an incredible increase of 41,024% over the course of a few years.
9. Polygon (MATIC)
Market cap: $10.2 billion
Polygon, which was previously known as Matic Network, is a relatively popular cryptocurrency that was founded in 2017. It has earned the nickname “Ethereum’s Internet of Blockchains,” likely due to its ability to support over 7,000 decentralized applications (dApps).
Since its launch, Polygon has undergone tremendous growth. When the cryptocurrency was first introduced, the price of its native token MATIC was just $0.00263 per unit. Today, MATIC is traded at $1.11, representing an astounding increase of 41,932% in value.
10. Solana (SOL)
Market cap: $9.2 billion
Solana is a blockchain platform designed to support decentralized finance (DeFi) applications, decentralized apps (DApps), and smart contracts. It utilizes a distinctive hybrid proof-of-stake and proof-of-history mechanism to process transactions securely and efficiently. The platform’s native token, SOL, is responsible for powering its operations.
Upon its launch in 2020, the price of SOL started at $0.77 per token. As of late April 2023, the value of SOL had surged to approximately $23.55, marking a significant gain of 2,958% in just a few years.
*As of 3:15 p.m. UTC on Apr. 12, 2023, the market capitalizations and prices of the cryptocurrencies mentioned in this context were sourced from coinmarketcap.com.
