Bitcoin remains the king of cryptocurrencies, but there are many other popular options
Bitcoin’s market dominance has been on the rise in recent weeks, as investors have sought out the largest cryptocurrency as a safe haven amid growing risks for the rest of the cryptocurrency sector.
The Bitcoin market dominance rate, which tracks the largest cryptocurrency’s share of the total digital asset market, rose to 50.2% earlier on Monday, its strongest level in a month and near a 26-month high of 52% reached at the end of June.
Analysts attributed the rise in Bitcoin’s market dominance to a number of factors, including:
- The potential for increased buying pressure from ETF listings
- Risks to altcoins posed by factors such as bankrupt exchange FTX’s token sales, declining Ethereum protocol revenues, and upcoming token unlocks
- Regulatory changes proposed by the New York Department of Financial Services (NYFDS) that would green-list Bitcoin as a digital asset that license holders can list or custody without further regulatory hurdles.
The rise in Bitcoin’s market dominance suggests that investors are becoming more risk-averse and are seeking out the largest cryptocurrency as a hedge against volatility in the rest of the cryptocurrency market.
Bitcoin may be the most well-known cryptocurrency, but there are thousands of others available. These are often referred to as altcoins, or alternatives to Bitcoin.
Here are the top 12 cryptocurrencies by market capitalization, as of September 18, 2023:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- XRP (XRP)
- USD Coin (USDC)
- Cardano (ADA)
- Dogecoin (DOGE)
- Toncoin (TON)
- Solana (SOL)
- Tron (TRX)
- Dai (DAI)
What are some of the key features of these cryptocurrencies?
- Bitcoin (BTC) is the first and most popular cryptocurrency. It is known for its scarcity and security.
- Ethereum (ETH) is a platform that allows developers to build decentralized applications. It is also the second-largest cryptocurrency by market capitalization.
- Tether (USDT) is a stablecoin, meaning that its value is pegged to the US dollar. This makes it a popular choice for investors who want to avoid the volatility of other cryptocurrencies.
- Binance Coin (BNB) is the native cryptocurrency of the Binance exchange. It can be used to pay trading fees and get discounts on Binance products and services.
- XRP (XRP) is a cryptocurrency that is designed for fast and cheap cross-border payments.
- USD Coin (USDC) is another stablecoin that is pegged to the US dollar. It is backed by fully reserved assets or those with “equivalent fair value” and those assets are held in accounts with regulated U.S. institutions.
- Cardano (ADA) is a platform that is similar to Ethereum, but it is designed to be more energy-efficient and scalable.
- Dogecoin (DOGE) is a meme cryptocurrency that was created as a joke. However, it has gained a large following and is now one of the most popular cryptocurrencies in the world.
- Toncoin (TON) is a cryptocurrency that was developed by Telegram. It is known for its fast transaction speeds and low fees.
- Solana (SOL) is a newer cryptocurrency that is known for its speed and scalability.
- Tron (TRX) is a platform that is designed to decentralize the internet. It is also the largest host of circulating stablecoins in the world.
- Dai (DAI) is a decentralized stablecoin that is backed by a collateral of other cryptocurrencies.
Is cryptocurrency a good investment?
Cryptocurrency is a volatile asset class, and its value can fluctuate wildly. As a result, it is important to do your own research before investing in any cryptocurrency.
If you are considering investing in cryptocurrency, it is important to remember that this is a high-risk investment. You should only invest money that you can afford to lose.
Here are some tips for investing in cryptocurrency:
- Start small. You don’t need to invest a lot of money to get started.
- Do your research. Learn as much as you can about the cryptocurrencies you are interested in investing in.
- Diversify your portfolio. Don’t put all your eggs in one basket.
- Invest for the long term. Cryptocurrency is a volatile asset class, so it is important to have a long-term investment horizon.
Conclusion
Cryptocurrency is a new and rapidly evolving asset class. It is important to do your own research before investing in any cryptocurrency.
Shayne Heffernan
