What are the largest cryptocurrencies?
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10 Largest Cryptocurrencies by Market Capitalization
1. Bitcoin (BTC)
Market Cap: $458 billion
Bitcoin is the largest and most popular cryptocurrency by market cap and was created by Satoshi Nakamoto in 2009. It is a decentralized digital currency that has transferrable ownership. This cryptocurrency is mineable and has a maximum supply of ₿21,000,000.
2. Ethereum (ETH)
Market Cap: $216 billion
The closest second to Bitcoin is Ethereum, and its token which is called “Ether.” The Ethereum network is intended to replace traditional financial services firms like banks and brokerages by using decentralized applications, commonly called “DeFi,” for financial applications. Ether is the fuel that is required to run transactions on the Ethereum blockchain.
3. Tether (USDT)
Market Cap: $66 billion
The third largest coin at the time of writing is quite different from Ether and BTC because it is a centralized cryptocurrency. Tether is the largest stablecoin that attempts to tie its price to the US Dollar. Tether is commonly abbreviated USD₮ or USDT. This stablecoin is owned by iFinex, which owns the Bitfinex exchange.
4. USD Coin (USDC)
Market Cap: $54 billion
The second largest stablecoin is USD Coin, abbreviated to USDC. Similar to USDT, USDC is centralized and is backed by cash and US T-bills. Interestingly, you can view the underlying assets here, which consist of approximately 20% Cash and 80% short-duration T-bills. To learn more about Short Duration Products, check out the CMSA course on this topic.
5. Binance Coin (BNB)
Market Cap: $52 billion
BNB use to use the Ethereum blockchain but now instead uses the Binance blockchain. BNB was created in 2017 and has wide uses today. Most commonly, it is used for payments and transaction fees on Binance. Like many other coins, BNB is centralized.
6. Ripple (XRP)
Market Cap: $18 billion
XRP is decentralized and uses the Ripple protocol to prioritize speed and minimize costs. It is an older cryptocurrency that was first released in 2012. XRP is said to be a fast and secure way to send digital payments.
7. Cardano (ADA)
Market Cap: $18 billion
Unlike the previous few coins, Cardano is a decentralized, open-source, public blockchain. Cardano has been around since 2017 but began development back in 2015 with help from an Ethereum cofounder.
8. Binance USD (BUSD)
Market Cap: $18 billion
Binance USD is the second coin on this list from the Binance cryptocurrency exchange. It is a centralized stablecoin based on Ethereum.
9. Solana (SOL)
Market Cap: $15 billion
Solana, which started in 2020, is a Blockchain platform on its own and has a native cryptocurrency with the same name. Solana is often used for smart contracts and now non-fungible tokens (NFTs). Its closest rival is said to be Ethereum, with many of the same features.
10. Polkadot (DOT)
Market Cap: $10 billion
Polkadot, abbreviated DOT, is a cryptocurrency released in 2020. It was started by another Ethereum co-founder and can be used to connect blockchains together securely.
Additional Resources
Thank you for reading CFI’s guide to the Top 10 Cryptocurrencies. To keep advancing your career, the additional CFI resources below will be useful:
My expertise in cryptocurrencies spans from their inception to their current market trends. Let's break down the concepts mentioned in the article:
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Bitcoin (BTC): Introduced in 2009 by Satoshi Nakamoto, Bitcoin remains the largest cryptocurrency by market capitalization. It operates as a decentralized digital currency with a capped supply of 21 million coins and utilizes mining for transaction validation.
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Ethereum (ETH): Following Bitcoin, Ethereum is a decentralized platform enabling smart contracts and decentralized applications (dApps). Ether (ETH) is its native cryptocurrency, fueling transactions on the Ethereum network. Ethereum aims to revolutionize traditional financial services through decentralized finance (DeFi) applications.
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Tether (USDT): Unlike Bitcoin and Ethereum, Tether is a centralized stablecoin pegged to the US Dollar, aiming to maintain a 1:1 value ratio. It's commonly used for stability in crypto trading and is owned by iFinex, the company behind Bitfinex.
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USD Coin (USDC): Similar to Tether, USD Coin is another centralized stablecoin backed by cash and short-duration US Treasury bills (T-bills), striving for stability with a transparent backing structure.
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Binance Coin (BNB): Initially on the Ethereum blockchain, Binance Coin migrated to Binance's own blockchain. It serves various purposes, notably as a payment method and for transaction fees within the Binance ecosystem.
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Ripple (XRP): Released in 2012, Ripple is a decentralized platform leveraging its protocol for fast and cost-efficient digital payments. XRP, its native cryptocurrency, aims to facilitate quick transactions.
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Cardano (ADA): Unlike centralized coins, Cardano is a decentralized, open-source blockchain platform focused on scalability, sustainability, and interoperability. Its development began in 2015, led by one of Ethereum's cofounders.
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Binance USD (BUSD): Another stablecoin from Binance, Binance USD operates on the Ethereum blockchain, offering a centralized pegged cryptocurrency.
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Solana (SOL): Emerging in 2020, Solana is a blockchain platform with its native cryptocurrency, used for smart contracts and more recently for non-fungible tokens (NFTs). It's recognized for its high throughput and scalability, often compared to Ethereum.
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Polkadot (DOT): Launched in 2020, Polkadot aims to connect multiple blockchains securely. Created by an Ethereum cofounder, DOT facilitates interoperability between different blockchains.
Each cryptocurrency serves distinct purposes, ranging from decentralized currencies (like Bitcoin and Ethereum) to stablecoins (such as Tether and USD Coin), platform tokens (like Binance Coin and Cardano), and interoperability solutions (like Polkadot). Understanding their features, purposes, and underlying technologies is crucial for anyone interested in the crypto space.
