Altcoins are alternative digital currencies to Bitcoin. The name Altcoins was coined from the words alternative coin, which refers to a group of currencies other than Bitcoin. Today, there are more than 5000 of these alternative currencies that exist. The functionality of most of the Altcoins is based on Bitcoin–their primary functions are similar. The advancement of technology, which has seen more and more transactions being done online, has increased the popularity of Altcoins. Altcoins are said to rule out volatility due to the stability of fiat currencies and the proven stability of Blockchain. In this article, we will discuss the top 7 Altcoins in 2021.
In terms of valuation and popularity, Ethereum is the largest and oldest Bitcoin alternative, second to Bitcoin in valuation and the first of all other Altcoins. Ether is the transactional token that facilitates interaction on the Ethereum network.
Ethereum is a decentralized platform that establishes a peer-to-peer network that securely executes and verifies application code, called smart contracts. According to https://learn.bybit.com/altcoins, there are currently 2921 dApps running on the Ethereum network. Ethereum is used in gaming, gambling, socializing, decentralized finance, and non-fungible tokens.
The value of Ethereum as of today is $3084 per coin. The recent continued surging in inflation has seen a drop in Ethereum and Bitcoin value.
Solana is a relatively new Altcoin compared to Ripple and Ethereum. However, since its inception, it has gained a massive following in the market to become the sixth most valuable cryptocurrency globally. Solana supports dApps and NFTs. Slana offers a combination of proof of history and proof of stake and point of sale verification which gives it an advantage over Ethereum. Mining Solana is also relatively easier than Bitcoin and Ethereum and consumes less energy. Visit https://learn.bybit.com/altcoins for an in-depth analysis of Solana and its fluctuation trends. Today, Solana is valued at $101.
Ripple is a payments settlement system and currency exchange network that can process transactions worldwide. The intention of developing Ripple was to replace the swift transfer system or otherwise replace the settlement layer between financial institutions. Ripple is one of the most successful Altcoins that has started to be noticed by big banks. According to https://learn.bybit.com/altcoins, XRP bypassed the $1 mark, hitting $2 in April 2021 for the first time since its introduction to the market. However, Ripple’s future is questionable due to the lawsuit with SEC and previous delisting among major exchanges.
Some of the advantages of using Ripple include; fast settlement, low fees, and a versatile exchange network. Large enterprises also use Ripple as a transaction platform.
Polkadot is an open-source project powered by the Web3 Foundation launched in 2020 by Gavin Wood, also Ethereum’s co-founder. It operates the main network blockchain, where transactions are permanently recorded. Polkadot has a unique technology of user-created blockchains called parachains that can be customized while still benefiting from the same security measures as the main Polkadot chain. Polkadot’s uniqueness is that it operates two blockchains–Parachain and Relay chain. Polkadot’s unique design allows secure transactions using only the computing resources required to run the main chain.
Many users view Polkadot as an improvement to Ethereum because they both use sharding to circumvent scalability and transactional issues. Visit https://learn.bybit.com/altcoins for Polkadot’s detailed price analysis.
Dogecoin was created in 2013 as an alternative to Bitcoin. Dogecoin has become one of the most popular Altcoins in the market, thanks to Tesla’s CEO, Ellon Musk, a heavy investor in Dogecoin. Ellon Musk urged McDonald’s Corp to accept Dogecoin as payment. Dogecoin is intentionally abundant–with over 10000 coins being mined every minute and maximum supply. With the increase in Dogecoin’s popularity, small-time miners with regular hardware have found it more challenging to mine. One would need an ASIC to mine Dogecoin profitably. The current market value of one Dogecoin is $ 0.17.
Litecoin was created in 2011 by Charlie Lee, a former Google engineer. Charlie Lee’s intention was for Litecoin to be a second to Bitcoin. Compared to Bitcoin, Litecoin has a faster blockchain transaction rate, making transaction processing when using Litecoin faster than Bitcoin. In November, AMC entertainment announced that they plan to accept Bitcoin, Litecoin, Ethereum, and Bitcoin cash at its theatres, which gave Litecoin a significant boost. Litecoin’s value has tripled in the past three years, but it lost a fair share of its market to Ethereum. There is more than four times the number of Bitcoin than Bitcoin. Litecoin is the number five cryptocurrency in the market, totaling around $5.4 Billion by January 2021.
The Litecoin platform has recently seen the launch of LiteBringer, which is an RPG video game running on its platform.
FTX Token is a cryptocurrency derivative offering tokens, futures, and OTC trading. FTX helps investors or users reduce transaction fees and acts as an excellent investment. Investing in FTX has been a profitable venture because of its 100% rise in value year over year compared to 62% gain for Ethereum and loss for Bitcoin. FTX value as of today is $46.
There exist more than 5000 Litecoins in the market today. Most Litecoins were developed with Bitcoin in mind, as far as their mode of operation is concerned. However, some Altcoins like Ripple were developed as payment settlement systems. In terms of popularity and valuation of these Altcoins, Ethereum tops the list. However, Dogecoin has also gained popularity over the past years, thanks to votes of confidence and investments by known billionaires and celebrities like Ellon Musk, Snoop Dogg, and Mark Cuban.
Before investing or trading in some of these Altcoins, it’s advisable to do proper online research to gauge their level of volatility and ascertain whether the chosen cryptocurrency can offer a return on investment.