In 2021, cryptos had their most successful period in terms of the percentage increase in price. This year, the trend continues, although the epidemic, the war in Ukraine, and the instability of global stock exchanges do not predict the future 100%. One thing is for sure: cryptocurrencies fascinate investors. However, caution is still required before investing.
Today, there are more than 10,000 cryptocurrencies with nearly 2.4 trillion USD in market capitalization. For beginners, it can be challenging to know which ones are the most promising. To help you out, here is a list of the top cryptocurrencies in 2022 with the highest market capitalization.
Not surprisingly, Bitcoin comes in first place. Created in 2009 by Satoshi Nakamoto, this cryptocurrency is a peer-to-peer and decentralized electronic currency. All transactions are made, without intermediaries, between two members of the Bitcoin network. Indeed, despite the competition, it remains the crypto asset with the highest exchange volume.
Since the first transaction in Bitcoin in 2010, the crypto has continued to attract interest from investors and financial services. 1 bitcoin was worth $500 in 2016. Thanks to events such as the launch of Paypal’s cryptocurrency buying and selling service, the support of the American car manufacturer Tesla and its acceptance in El Salvador as FIAT currency, its price has risen sharply. Thus, at the end of October 2021, 1 Bitcoin was worth 605,000 USD.
In 6 years, the value of this digital currency has increased by 300%. In 2021 alone, Bitcoin recorded an 80% increase. Today, Bitcoin is the only virtual currency with a market capitalization of more than 1 trillion USD on the stock market. So, while its price remains volatile, Bitcoin is a stable investment, less susceptible to market vagaries. Indeed, this crypto deserves its nickname: “digital gold.”
Created in 2013 by the Russo-Canadian Vitalik Buterin, Ethereum is the main alternative to Bitcoin. It is a blockchain, a decentralized software platform that allows the execution of smart contracts. These contracts reduce the number of intermediaries between the buyer and the seller during transactions. But also to eliminate bureaucracy. Thanks to blockchain technology, Ethereum guarantees unbreakable security.
ETH has been the second-largest cryptocurrency in market capitalization for over five years. In 2021, it recorded an increase of +400.49%. Ethereum has a market capitalization of 344,863,791,586,9 USD, and 120,517,568.56 ETH tokens are outstanding. Its price is currently at 2,854.52 USD with a forecast of 3,000 USD or even 4,000 USD by the end of 2022.
Unlike Bitcoin, Ether is not deflationary, as its supply is not limited. Some experts are even putting forward figures of up to USD 8,000. Smart contracts are what Ethereum is known for. Indeed, they have enabled many blockchains and their crypto assets to come into existence. Moreover, Ethereum is leading the development of blockchain technology.
BNB (Binance Coin)
Founded in 2017 by Changpeng Zhao, Binance is the world’s most widely used cryptocurrency exchange and trading platform. It offers a range of features for its users to facilitate their transactions. Binance also has its token, the Binance Coin (BNB), initially built on the Ethereum blockchain. And launched a few days before the Binance platform. At the time, 200 million tokens were created.
Initially, this crypto was created to reduce trading fees. It was later used to pay reduced transaction fees on its network, book travel, pay for entertainment, online services via the Binance Visa card, and financial services (exchange fees, listing fees, etc.).
Currently, the BNB token ranks third in market capitalization at USD 75.8 billion. It costs 460.05 USD. However, BNB is the cryptocurrency with the highest increase between 2021 and 2002, with +1300%. The exchange platform destroys a portion of the outstanding tokens every three months to limit their number (about 100 million) and thus maintain their value at a high level.
Ripple is a cryptocurrency that circulates on the digital payments platform RippleNet, created by Ripple Labs. XRP is used to make contracts or settle financial transactions. It is also used for speculative purposes.
Since its inception, the price of XRP has continued to rise. The technology it uses is 100 times more efficient and less expensive than currently used by banks worldwide. Of the 100 billion tokens issued by the company at its inception, 43.7 billion are currently in circulation. One XRP token was worth USD 1.07 by 2021, with a market capitalization of approximately USD 44 billion.
However, this does not prevent hundreds of financial institutions from using it to speed up their flow processing, thus offering competitive prices to their customers. XRP is often referred to as the cryptocurrency of banks. Today, XRP is one of the most essential cryptos being watched very closely by investors.
Tether USD (USDT)
Tether USD is a stablecoin issued on different blockchains to protect itself from the volatility of the virtual currency market. It does not depend on the stock market. Created in 2014, Tether USD is the first and largest stablecoin. It accounted for about 75% of the market in 2020.
To offer investors the ability to sell volatile virtual currencies without going through fiat currencies, Tether is based on the reserve collateralization principle. Its value is backed by the U.S. dollar. Thus, 1 Tether is equivalent to 1 USD. In other words, one USDT created corresponds to 1 USD.
This stability reassures investors. Despite difficulties in 2017, many continue to trust stablecoin to secure their positions. This confidence will likely continue if investors do not find more attractive alternatives. By 2021, Tether had a market capitalization of over $68 billion. This year, the virtual currency is expected to continue its momentum.
Born in 2017, Cardano is a blockchain proof of stake (POS) project. It is a protocol that allows a new block to be mined without having to solve any calculations first. Instead, the miner has to stake a portion of their cryptocurrencies.
Cardano is accessible to all users worldwide, and transactions are secured and permanently recorded on the Cardano platform. Its digital currency is ADA. It can be traded on the most popular digital currency exchanges for investors.
Cardano offers a large multi-asset account book as well as verifiable intelligent contracts. In other words, the platform offers many other cryptocurrencies besides ADA. Currently, the price of ADA is 1.19 USD with a market capitalization of 40.49 billion USD. In March 2022, ADA recorded its highest increase of 35%.
Launched in 2011 by Google alumnus Charlie Lee, Litecoin is one of the most promising cryptocurrencies in the long run. It is inspired by Bitcoin but differs in a few ways. Notably from a hash algorithm point of view or even transaction time per block. Litecoin is the improved version of Bitcoin, faster, lighter, and cheaper. Dubbed “digital money,” LTC aspires to provide a solution to the shortcomings of other virtual currencies.
Like Bitcoin, Litecoin can be mined. This guarantees its 100% availability. 2017 is the year of all success for Litecoin. After starting the year at USD 4 per token, LTC ends the year with a price amounting to USD 371. In 2018, Litecoin continued its rise. It is considered by Google as a financial instrument for currency conversion.
In 2022, LTC will start the year with a price of 528.76 USD, a 78% increase in the exchange rate. The total number of Litecoin tokens, 85 million, has yet to be reached. Thus, crypto promises a great prospect of evolution.