From Bitcoin and Ethereum to Solana and Cardano, the world of cryptocurrencies is vast and can be overwhelming for newcomers. To help you navigate, here are the top 5 cryptocurrencies to consider investing in, based on their market capitalization.
- Bitcoin (BTC)
Market cap: $1.2 trillion
Year-over-year return: 101%
Overview: Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. It runs on a blockchain, a ledger that logs transactions distributed across a network of thousands of computers. Bitcoin’s proof-of-work process ensures security and prevents fraud. Over the years, Bitcoin’s value has soared. From around $500 in May 2016, it reached approximately $58,948 by August 13, 2024, marking a growth of 11,690%.
- Ethereum (ETH)
Market cap: $317.5 billion
Year-over-year return: 43%
Overview: Ethereum is both a cryptocurrency and a blockchain platform, popular among developers for its potential applications like smart contracts and non-fungible tokens (NFTs). Since April 2016, Ethereum’s price has grown from about $11 to around $2,640 by August 2024, reflecting a 23,900% increase.
- Solana (SOL)
Market cap: $68.1 billion
Year-over-year return: 499%
Overview: Solana is designed to support decentralized finance (DeFi) uses, decentralized apps (DApps), and smart contracts. It utilizes a hybrid proof-of-stake and proof-of-history mechanism to process transactions quickly and securely. SOL, its native token, has seen significant growth, rising from $0.77 in 2020 to around $145.93 by late August 2024, a gain of 18,852%.
- Cardano (ADA)
Market cap: $12.1 billion
Year-over-year return: 16%
Overview: Cardano is known for its early adoption of proof-of-stake validation, which speeds up transactions while reducing energy usage. Cardano also enables smart contracts and decentralized applications, powered by its native coin, ADA. Since 2017, ADA’s price has increased from $0.02 to $0.34 by August 13, 2024, a rise of 1,577%.
- Polygon (MATIC)
Market cap: $3.9 billion
Year-over-year return: 16%
Overview: Polygon, previously known as Matic Network, aims to improve Ethereum’s scalability. Its framework allows for building and connecting Ethereum-compatible blockchain networks, offering lower fees and faster transactions. Since its launch, MATIC has become a key player in the crypto space, contributing to the broader adoption of decentralized finance and applications.
These cryptocurrencies represent some of the most prominent and promising investments in the market today.
