2024’s Top 10 Cryptocurrencies
Here are the top 10 cryptocurrencies in 2024 ranked by market cap.
Cryptocurrencies have become an appealing opportunity for investors with a medium to high-risk tolerance. They are largely speculative, but emerging markets and new use cases are helping to realize their full utility.
The crypto market is no stranger to intense volatility, making it a risky investment that can work for or against your portfolio. However, you can minimize risk by sticking to the top cryptocurrencies that have earned their place.
There are over 9,800 cryptocurrencies, and a good starting point is those with the highest market caps. Research from Statista shows that the top 20 cryptocurrencies make up approximately 90 percent of the sector’s total market cap.
The list below offers a look at the top 10 cryptocurrencies by market cap as of May 6, 2024, using data from CoinMarketCap.com.
You’ll learn why they’re appealing, the important people associated with them and when they were created. For reference, market cap is a better statistic to focus on than price when it comes to cryptocurrencies because each coin has different mechanics behind it. Bitcoin, for example, has a maximum amount of 21 million coins that will ever exist, while Ethereum has no maximum amount.
1. Bitcoin (BTC)
Market cap: US$1.29 trillion
Bitcoin is the original cryptocurrency that launched the entire asset class. The anonymous creator, Satoshi Nakamoto, made the software open source, allowing others to create new cryptocurrencies without reinventing the wheel.
The Bitcoin price has gone from near zero at its inception to an all-time high of more than US$73,000 in March.
- Created: 2008
- Important people: Satoshi Nakamoto, the unknown and anonymous founder who stepped away from the project in its early years, is the prominent name behind Bitcoin. The Bitcoin Foundation now guides development alongside an open-source community of developers.
- Why it’s popular: The core innovation behind Bitcoin is the ability to conduct transactions without a trusted third party, such as a bank or central entity. Since then, it’s exploded in popularity as a store of value and a means of transacting in a peer-to-peer nature.
- Maximum supply: 21 million
View Bitcoin on CoinMarketCap.com
2. Ethereum (ETH)
Market cap: US$352.73 billion
Ethereum was announced in 2013 and became publicly available in 2014. Ethereum introduced the new concept of “smart contracts,” which allow programs to be deployed on the blockchain and executed when certain conditions are met. This innovation catalyzed a series of other new cryptocurrencies and use cases.
A theorized point called “the flippening” describes when Ethereum will overtake Bitcoin in market cap and become the top crypto coin. This change has yet to happen and is up for debate, but many crypto enthusiasts think it’s inevitable.
Now that spot Bitcoin exchange-traded funds (ETFs) have received approval from the US Securities and Exchange Commission (SEC), investors are hopeful that spot Ether ETFs will be next. Eight institutions are awaiting SEC approval for spot Ether ETFs: BlackRock, VanEck, ARK 21Shares, Grayscale, Fidelity, Invesco, Galaxy Digital and Franklin Templeton.
- Created: 2014
- Important people: Vitalik Buterin developed Ethereum and remains involved with the project and the crypto community. Five other developers are credited as co-founders. The Ethereum Foundation guides development.
- Why it’s popular: The introduction of smart contracts launched an entirely new era for cryptocurrencies and paved the way for non-fungible tokens. New use cases continue to emerge as adoption increases.
- Maximum supply: No maximum
View Ethereum on CoinMarketCap.com
3. Tether (USDT)
Market cap: US$111.21 billion
Tether, or USDT, is the most prominent stablecoin on the market. A stablecoin is pegged to a specific asset to maintain its value. Tether is pegged to the US dollar and maintains a consistent value of US$1, although it can vary by a few cents as markets fluctuate.
- Created: 2014, known initially as Realcoin
- Important people: Brock Pierce, Reven Collins and Craig Sellars.
- Why it’s popular: USDT works by allocating US dollars to the organization’s reserves whenever a new USDT coin is issued. This system results in a cryptocurrency backed by fiat currency, which many investors appreciate as a foundation for their portfolio. While its value will not change, USDT is ideal for financial transactions in which neither party wants the volatility of other coins. Evidence of USDT’s popularity was on display in its record net profits of over US$4.5 billion in Q1 of this year.
- Maximum supply: No maximum
View Tether on CoinMarketCap.com
4. BNB (BNB)
Market cap: US$83.85 billion
BNB is a cryptocurrency developed and maintained by Binance, one of the most popular cryptocurrency exchanges in the world. The BNB coin is used throughout the Binance ecosystem, including the exchange itself and other Binance projects, which gives the coin a strong use case and user base.
- Created: 2017
- Important people: Changpeng Zhao, founder of Binance, and He Yi spearheaded the development of BNB and integrated it into the Binance exchange. Zhao was recently sentenced to four months in a US prison for violating the Bank Secrecy Act for failure to establish procedures to prevent illegal trading and money laundering on the platform.
- Why it’s popular: BNB gained momentum as Binance users could opt to pay fees with BNB in exchange for lower percentages on trade fees. This remains the core use case of the coin, but the introduction of smart contracts and related features has helped it gain additional popularity.
- Maximum supply: No maximum
5. Solana (SOL)
Market cap: US$71.31 billion
Solana (SOL) uses proof-of-stake and proof-of-history mechanisms to provide smart contract functionality, transaction settlement and token issuance. As with Ethereum, the plan is to grow an ecosystem of cryptocurrency-powered products and services.
- Created: 2020
- Important people: Solana Labs founders Anatoly Yakovenko and Raj Gokal.
- Why it’s popular: SOL is a cheaper option to older blockchains, and transactions can be completed at a faster rate as well. The Solana ecosystem’s many applications and tools provide a lot of utility for coin holders, including the ability to lend tokens to a liquidity pool. It also has a thriving developer community that has given rise to many memecoins.
- Maximum supply: No maximum
View Solana on CoinMarketCap.com
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6. USD Coin (USDC)
Market cap: US$33.3 billion
USD Coin, or USDC, is the second most popular stablecoin, and it operates similarly to USDT. The coin is supported by major players in the crypto industry who continually advocate for transparency and compliance.
- Created: 2018
- Important people: Jeremy Allaire and Sean Neville launched USDC, and it was later adopted by major players Coinbase and Circle.
- Why it’s popular: USDC is prized over other stablecoins for its transparency. Coinbase and Circle, two organizations heavily involved in the coin, are leaders in compliance and advocate for crypto regulation.
- Maximum supply: No maximum
View USD Coin on CoinMarketCap.com
7. XRP (XRP)
Market cap: US$28.49 billion
XRP is the native token of the Ripple platform. XRP was created as a more energy-efficient and faster alternative to Bitcoin. The company has been locked in a legal battle with the SEC about whether or not it is a security, which has impacted the coin’s popularity and future. However, it remains in the top 10.
- Created: 2012
- Important people: Jed McCaleb and Arthur Britto co-founded the coin in association with their company, Ripple.
- Why it’s popular: XRP and Ripple gained popularity by being much faster and cheaper than Bitcoin for conducting transactions. However, whether that advantage has remained relevant is arguable as newer coins have emerged that provide similar benefits with additional functionality.
- Maximum supply: No maximum
8. Toncoin (TON)
Market cap: US$23.35 billion
Toncoin (TON) was originally created as part of Telegram’s blockchain project known as Telegram Open Network. The goal of TON is to build out a fast, scalable blockchain that allows for smart contracts and decentralized applications. It is used for network operations, transactions, games or collectibles built on the platform.
- Created: 2018
- Important people: Telegram founders Pavel Durov and Nikolia Durov. Revived by Anatoly Yakovenko and Kirill Emelyanenko.
- Why it’s popular: TON can leverage Telegram’s more than 900 million monthly active users, as well as its channels that generate more than 1 trillion views each month. In February, Telegram announced that it plans to share advertising revenue with channel partners and reward users with Toncoin.
- Maximum supply: 5.11 billion
View Toncoin on CoinMarketCap.com
9. Dogecoin (DOGE)
Market cap: US$21.57 billion
Dogecoin is interesting in that it is functionally the same as Bitcoin, with the only difference being the removal of a maximum supply. The coin was originally launched as a memecoin, i.e. a joke, leveraging the then-popular meme of a Shiba Inu with grammatically incorrect captions. It was designed to be a low-value, high-supply coin for community use.
The coin remained relatively obscure until Elon Musk began tweeting about it, beginning boom-bust cycles powered primarily by Musk’s tweets and other public statements. Its latest big bump came in early May, with Tesla’s (NASDAQ: TSLA) announcement that Dogecoin is now a payment option on its website.
- Created: 2013
- Important people: Musk, while having nothing to do with the initial development of the coin, adopted it for unknown reasons and began promoting it. His interest catalyzed a significant increase in value and gave new life to the dying memecoin. The actual founders are Billy Markus and core developer Max Keller, who returned to the project in its recent resurgence.
- Why it’s popular: Musk, memes and theorized widespread usage.
- Maximum supply: No maximum
View Dogecoin on CoinMarketCap.com
10. Cardano (ADA)
Market cap: US$16.41 billion
Cardano, or ADA, prioritizes scientifically backed development. Rather than rushing new features and intense marketing campaigns, developers conduct peer-reviewed research before implementing new features.
Some believe Cardano is a long-term winner, while others criticize its slow development process. Ultimately, Cardano is the only top coin with a well-documented and strict development process that gives confidence in its long-term success.
- Created: 2017
- Important people: Founded by Charles Hoskinson, a mathematician, and maintained by a series of scientifically driven foundations.
- Why it’s popular: The token has a strong base of “true believers” due to Cardano’s deliberately slow, scientifically-backed development methodology. Currently, the proof-of-stake coin is used by agricultural companies to track produce supply chains; it is also used to store education credentials, and it enables retailers to combat counterfeit products. Its solid technical backing could give rise to new use cases.
- Maximum supply: 45 billion
View Cardano on CoinMarketCap.com
Conclusion
Cryptocurrencies are still relatively new, meaning the risks around investing are heightened. However, looking at the top 10 coins by market cap minimizes risks as these cryptocurrencies have already proved themselves and have a solid user base and existing use cases. Even so, investors should keep in mind that cryptocurrencies overall require caution.
This article was originally published on InvestingNews.com.
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Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
