Bitcoin has not only been a forerunner, bringing in a wave of cryptocurrencies based on a distributed peer-to-peer network, but it has also become the dominant model for cryptocurrencies, encouraging plenty of followers and franchises.
Bitcoin is today valued at $1.04 trillion, while Ethereum is at $289 billion. The overall market worth of all cryptos – and there are over 5000 of them – has surpassed $2 trillion, implying that bitcoin represents approximately half of that kind of crypto market. This is a significant shift from five years ago when bitcoin accounted for around 82 percent of total market value. This indicates that the value of alternative cryptocurrencies, defined as altcoins, which comprise all cryptocurrencies other than bitcoin, has climbed substantially faster than bitcoin.
However, market share does not always correspond to the number of cryptocurrencies. Depending on which crypto market data source you select, there are thousands of them. CoinMarketCap counts 5,130, whereas Statista counts slightly more than 4,500. In any case, if you seek in the appropriate places, you’re bound to find some hidden jewels – and perhaps even the ideal cryptocurrency to invest in 2021.
Here is a compiled list of the 10 most important cryptocurrencies other than bitcoin
Dogecoin did begin as a joke in 2013, but investors are enjoying the final laugh. DOGE has grown to become one of the most popular cryptocurrencies ever, owing in large part to the support of billionaire entrepreneur Elon Musk. The Tesla CEO is collaborating with Dogecoin developers to make the cryptocurrency more sustainable, positioning DOGE as one of the cryptocurrencies to look at in 2021. When you notice that DOGE returns have surpassed those of practically every other cryptocurrency during the first five months of 2021, it is evident that it is one of the cryptocurrencies to look for. DOGE has been the greatest cryptocurrency to purchase in 2021 thus far, with gains of more than 6,500 % by May 21, outperforming both BTC and Ether.
Ethereum has been nicknamed a supercomputer because to the introduction of smart contracts, which are digital renditions of traditional contracts that are resolved on the blockchain using code in a trustless manner, implying that no third-party provider is required. Smart contracts are utilised in marketplaces like as DeFi, where code is recorded on the blockchain and terms are performed when predetermined criteria are satisfied.
Ethereum developers are also working on ETH 2.0, the first phase of which was announced in December 2020, which would improve network scalability and lead to faster and cheaper blockchain transactions. This is largely expected to strengthen the network’s position in the industry among both individual and institutional market players, benefiting the cryptocurrency that drives the network, Ether.
Casper describes itself as a “future-proof blockchain” and a “blockchain for builders.” Mati Greenspan, a bitcoin expert, praised the initiative as an energy-efficient blockchain. CSPR, the network’s digital currency, entered our list of the top ten most important cryptocurrencies other than bitcoin. Casper Labs promotes its green approach by providing enterprises with the “best of both worlds” in terms of decentralization and sustainability.
Casper held its initial public offering in March 2021, and the project and cryptocurrency are still in their early stages. It has received the backing of crypto investment businesses such as Evangelion Capital, which stated at the time that it had “invested considerable capital” in the project. Casper is unquestionably one of the cryptocurrencies to keep an eye on.
4. Energy Web Token
Energy Web also fits under the green energy investment category because it is involved in the worldwide power business. The Energy Web Decentralized Operating System (EW-DOS) is the driving force behind the Energy Web Decentralized Operating System (EW-DOS), which aims to accelerate low-carbon energy transmission using open-source digital technologies. Energy Web has firms like Shell, Engie, Elia Group, and PTT Group as members and project partners, to mention a few, and it is expected to play a role in the future of bitcoin.
The project was included in Bloomberg NEF’s research “Blockchain Opportunities in Power Still Abound,” which found that the total addressable market for blockchain in the power industry may approach USD 100 billion in less than a decade.
Polkadot has attained cult-like reputation in China, due in part to the project’s originator, Gavin Wood, who maintains a dual-residence in China. Polkadot had a more than 40% increase in the number of developers developing on the protocol in the year leading up to May 2020, whereas the Bitcoin and Ethereum networks both saw reductions. Polkadot, on the other hand, has been identified as a promising project for smart contracts and decentralised applications by Outlier Ventures (dApps).
Polkadot is one of the most popular cryptocurrencies and looks to have cemented a position in the cryptocurrency market’s future based on its popularity and involvement in the DeFi field.
Zcash (ZEC) is a privacy coin, a sort of cryptocurrency that was “developed on the original Bitcoin core.” One significant distinction is that Zcash, which was developed by experts from MIT and Johns Hopkins, uses zk-SNARKs, a kind of zero-knowledge cryptography, to preserve a user’s anonymity.
The allure of Zcash is that it can deliver shielded transactions via blockchain encryption while simultaneously confirming transactions according to “consensus rules” using zk-SNARK proofs. Given that most blockchain transactions are public, Zcash’s ability to mask user information makes it valuable to a cryptocurrency ecosystem that values anonymity.
Aave is a non-custodial transparent DeFi technology, including AAVE as its native coin. Users may earn interest on deposits and borrow assets via smart contracts, all without the need for a bank. Aave, which is built on the Ethereum network, offers a variety of cryptocurrencies and stablecoins for borrowing and lending, including Ethereum (ETH), Basic Attention Token (BAT), and Decentraland (MANA), all of which are various forms of cryptocurrency. Aave is significant to the cryptocurrency ecosystem since it is one of the DeFi protocols, allowing the unbanked or underbanked to obtain access to financial instruments that would otherwise be unavailable to them.
Solana is a high-speed blockchain with the native coin SOL. Solana engineers, who come from digital behemoths such as Intel, Google, and Twitter, are noted for their ingenuity, and the Solana Foundation has been able to raise millions of dollars in fundraising rounds as well as assist initiatives in the SOL ecosystem. Its distinguishing feature is its capacity to increase transaction throughput more efficiently than major blockchains Bitcoin and Ethereum. Solana can process more than 50,000 transactions per second and scale without relying on security-compromising sharding. As a result, Solana is unquestionably one of the cryptocurrencies to keep an eye on.
Tether was the first and most popular stablecoin, and it is expected to play a part in cryptocurrency’s future. Tether is an excellent substitute for fiat money since it is tied 1:1 to the US dollar, allowing traders to transfer cash between exchanges or people without relying on sluggish and inefficient institutions.
This attribute makes it a popular choice among institutional investors as well. While Tether is a contentious stablecoin whose US dollar reserves have been called into question, it is readily available to large investors on trading platforms such as CoinbasePro and is thus unlikely to lose its status as one of the top cryptocurrencies very soon.
10. Binance Coin
Binance not only hosts a spot exchange, but also a decentralised exchange (DEX) and the platforms Binance Chain and Binance Smart Chain, all of which rely on BNB Coin to pay for trading and transaction fees. Token holders may now use BNB Coin to participate in token sales on Binance Launchpad. Furthermore, BNB Coin might be used as a form of payment at specific shops and when travelling. All of these applications increase demand for BNB Coin, making it one of the most popular cryptocurrencies to date.
Clearly, there are several sorts of cryptocurrencies, each of which adds something unique to the greater crypto ecosystem. While the cryptocurrencies to watch are subjective, any of these coins might be argued to be among the top ten cryptocurrencies. Just keep in mind that cryptocurrencies may be dangerous investments, so do your own research before investing.