Altcoins are cryptocurrencies that were developed after the success of Bitcoin, and they were meant to address some of the limitations of Bitcoin or provide novel capabilities and use cases. These can range from different transaction speed, privacy enhancements, different consensus mechanisms, and so on. As of 2023, the top 10 altcoins are:
1.Ethereum (ETH) – Market cap: $199 billion. Ethereum is the largest altcoin and is a distributed computing network that runs decentralized applications (dApps) and smart contracts.
2. Binance Coin (BNB) – Market cap: $47 billion. Binance Coin is a utility token for the Binance exchange, which can also be used for payment processing outside the exchange.
3. XRP – Market cap: $19 billion. XRP is used to facilitate exchanges of different currency types with Ripple Labs, a digital technology and payment processing company.
4. Cardano (ADA) – Market cap: $12 billion. Cardano was an early adopter of the proof-of-stake consensus mechanism, which speeds up transaction time and provides higher levels of security.
5. Dogecoin (DOGE)– Market cap: $10.6 billion. Dogecoin, initially started as a meme coin, has evolved into a prominent cryptocurrency.
6. Polygon (MATIC) – Market cap: $10.5 billion. Polygon is an Ethereum-based scaling platform that allows developers to build dApps with low transaction fees.
7. Solana (SOL) – Market cap: $8.3 billion. Solana is designed to power decentralized finance, apps, and smart contracts. It runs on a unique hybrid proof-of-stake and proof-of-history mechanisms.
8. Polkadot (DOT) – Market cap: $7.3 billion. Polkadot allows developers to build specific-purpose blockchains that connect to the main Polkadot blockchain hub.
9. Litecoin (LTC) – Market cap: $6.9 billion. Litecoin is one of the original altcoins, designed to improve several of Bitcoin’s perceived shortcomings such as slow transaction processing speeds and mining monopolies.
10. Shiba Inu (SHIB) – Market cap: $6.5 billion. Like Dogecoin, Shiba Inu started as a meme coin. It is based on the Ethereum blockchain and is known for its high volatility.
It’s important to note that the value and utility of altcoins can vary greatly, and they should be researched thoroughly before any investment is made.