“Market rankings reflect attention, not long-term resilience.” — DNA Crypto.
There are so many cryptocurrencies, and as a newbie in the world of crypto, it can be overwhelming to determine the starting point and the path to follow as you invest. This article gives insight into the top-ranked cryptocurrencies in 2022; it is a good roadmap as you venture into the crypto world. The ranking is based on the market capitalisation, which is the total value of all coins currently circulating in the cryptocurrency market.
Bitcoin #1
Bitcoin dates back to 2008/2009. Its introduction has led to an exponential rise in the popularity of cryptocurrency. An individual or organisation under the pseudonym Satoshi Nakamoto created it.
Like other cryptocurrencies, Bitcoin uses blockchain technology, a ledger that records transactions. It is protected through cryptography, which makes it secure. With a skyrocketed value, as of the first day of February 2022, 1 bitcoin was worth over $44,000. Its market capitalisation is about $800 billion.
Ethereum #2
It is with absolute doubt that Vitalik Buterin made no error in founding Ethereum. With a market capitalisation of over $382 billion, it is the technology behind thousands of applications used today. It uses the blockchain. It is popular among developers for its features, such as smart contracts that automatically execute when conditions are met. Its value, as of February 2022, was over $3,200.
Tether #3
Tether’s founders include Brock Pierce, Reeve Collins, and Craig Sellars. In the classification of cryptocurrencies, it is considered a stablecoin. This means its value is tied to a specific currency, making it more stable and less volatile. It has attracted the interest of investors unwilling to risk investing in other cryptocurrencies with volatile values.
BNB #4
The Binance coin, with a market capitalisation of over $90 billion, was worth over $377 as of February 1, 2022. It is used to trade on Binance, a crypto exchange. BNB was launched in July 2017 and has since gained value, becoming popular enough to be traded for other cryptocurrencies, such as Bitcoin.
US Dollar Coin (USDC) #5
It is a stablecoin, meaning its value is pegged to the US dollar. It is also backed by cash, meaning it can always be redeemed for a dollar per USDC. Its market capitalisation is about $51.3 billion. The USDC is natively supported across multiple blockchains, including Ethereum.
Uniswap (UNI)
Uniswap (UNI) is a decentralised exchange built entirely on smart contracts. As a fully trustless and autonomous system, users can create and trade any ERC20 token they want while remaining in complete control of their private keys. All traded tokens are held in escrow through an open-source contract.
XRP
XRP is a digital currency that was created in 2012 as the internal token of a payment system called Ripple. The Ripple network is a real-time gross settlement system (RTGS), currency exchange and remittance network. It supposedly offers secure, instant, and almost-free financial transactions of any magnitude across the globe, with no chargebacks.
XRP is an open-source technology, meaning its design is publicly accessible and free. So, anyone can use it for any purpose. Many businesses have already adopted XRP to build reliable, low-cost payment solutions. For example, MoneyGram has already partnered with XRP II, LLC to use XRP in its payment flows. The partnership with MoneyGram will allow them to use XRP in instantaneous cross-border payments between banks on its network. At its core, Ripple is based on a shared, public database (ledger) that uses a consensus process to enable payments, exchanges, and remittances in a distributed manner.
Cardano
Cardano (ADA) is a blockchain platform with smart contract functionality, first proposed on September 27, 2017 – the same day its corresponding cryptocurrency was launched. As the cryptocurrency world grows and diversifies, new coins are constantly emerging to challenge existing ones. Cardano is one such currency, having recently entered the market and established itself as one to watch. The distinguishing factor behind Cardano is that it is not just another digital currency. It was created to be a fully functioning platform for decentralised apps and smart contracts, similar to Ethereum but with no transaction fees and more advanced features.
Cardano has its own blockchain built in layers like an onion. This ensures that every aspect of the project can be updated without disrupting or forking the main chain. The Cardano team developed a special protocol layer called Ouroboros that enables PoS (Proof-of-Stake) consensus to function securely and efficiently on the platform. The team hopes to bring Cardano up to date with modern technology while keeping it secure and decentralised enough to fend off future threats such as quantum computers or government regulations. Cardano’s creators made an effort to maintain a diverse team of experts across different fields, including cryptography, programming languages, and cybersecurity.
Aave (AAVE)
Aave (AAVE) is a blockchain-based technology that facilitates the direct monetisation of integrated services for global human mobility solutions. Aave facilitates a decentralised, trusted, and intelligent transportation ecosystem built on a worldwide community of linked mobility providers and consumers. As the network grows and access demand increases, so does demand for Aave tokens.
It uses the SHA-256 algorithm and works without using a central bank. Aave is open-source, decentralised, and generated through mining. Anyone can become a miner by downloading the Aave wallet, which produces a public address that serves as your identity. Through this, you can travel on an anonymous road while paying for goods and services with Aave.
Solana (SOL)
Solana (SOL) is a blockchain for decentralised, secure, and encrypted messaging. Using economically incentivised nodes called “Relay Nodes,” Solana (SOL) can simultaneously create and destroy cryptographically secure messages. Private data originating from the network’s participants never leaves the network, ensuring the utmost in privacy, security and integrity. Furthermore, Solana supports instant messages, audio/video content, and file transfers.
Terra (LUNA)
Terra is a decentralised P2P platform that allows direct connection between individuals, with no brokers, market makers, or any other third party. Terra offers a platform for connecting individual needs and skills to the global flow of goods and services. LUNA token is used as a medium of exchange within the Terra ecosystem.
Luna’s unique approach uses a Smart Contract to build decentralised reputation systems powered by Terra to handle bad debts between parties, ensure maximum privacy and data ownership, and create a secure and self-sustaining economy that increases in value over time. Terra needs fiat currencies such as USD or EUR to be used across accounts on the Luna Network.
Dogecoin DOGE
Dogecoin is one of the latest cryptocurrencies to hit the market. Created in 2013, DOGE was founded by DOGE founders who hoped to create a fun cryptocurrency that could stand out to a broader demographic than other cryptocurrencies. Dogecoin has a very active online community that is extremely helpful to newcomers. Dogecoin has been used to “tip” others on Reddit, Twitter, and YouTube, and to trade for services and goods.
DOGE is used to transfer wealth online quickly and cheaply, without a bank account. Even more, DOGE is considered one of the best replacements for Bitcoin.
To Sum it Up
It is important to note that crypto can be purchased in fractions since a whole cryptocurrency unit can be pretty expensive. With a solid understanding of these top-ranked cryptocurrencies, you can confidently enter the crypto world and invest.
Image Source: Adobe Stock
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
