First of all, it is important to understand how cryptocurrencies work, which are nothing more than a valuable asset that exists only in digital format. That is, unlike the dollar, euro or real, they do not exist physically and are not issued by banks or centralized bodies.
The issuance of these assets is done by automated mechanisms in blockchain networks through mining or staking. While a conventional currency has its circulation volume controlled by the government, assets like Bitcoin and Ethereum are issued in a computerized way.
Cryptocurrency trading can be done directly between users (peer-to-peer method) or via specialized exchanges.
Cryptocurrency ranking: the 10 most valuable of 2023
The global ranking of cryptocurrencies varies greatly, as assets are volatile and depend on a number of factors to remain at the top. In 2023, these are the 10 most valuable cryptocurrencies on the market:
1. Bitcoin (BTC)
The forerunner of the crypto universe remains at the top and is far from leaving office. Bitcoin may have swung negatively in 2022, but it remains the most traded cryptocurrency globally .
The coin created by Satoshi Nakamoto is the main decentralized asset on the market and has become the basis for thousands of other cryptos that have emerged since then.
2. Ethereum (ETH)
Second place is also increasingly consolidated by Ether , the most widely used blockchain network cryptocurrency on the market. More than a digital asset, the Ethereum platform is the basis for building countless decentralized projects and applications (dApps), becoming a milestone for the second generation of cryptocurrencies.
With the advent of Ethereum 2.0, new functionalities must be implemented in the network, making it even stronger in the global crypto market.
3. Tether (USDT)
The third position in the cryptocurrency ranking belongs to the most consolidated stablecoin in our economy. Tether is the first cryptocurrency backed by a physical currency ever created.
Its value is pegged to the US dollar 1 to 1: that is, 1 USDT will always be worth the same as US$ 1. This is the best crypto alternative for those who want to explore the crypto market in a solid way and without major fluctuations.
4. USD Coin (USDC)
In the wake of stablecoins, USD Coin also stands out and is in the top 5 of the main cryptocurrencies today. Also paired with the US dollar, the cryptocurrency stands out for having a more agile mechanism compared to Tether, with greater expectations of consolidation in the future.
The supply of USDC exceeds the 40.6 billion tokens issued on the Ethereum network, while the amount of USDT is slightly lower at around 39.8 billion.
5. Binance Coin (BNB)
Binance Coin (BNB) is the utility token of Binance, one of the largest crypto exchanges in the world. Focused on the execution of smart contracts, its network has become an alternative to Ethereum.
The use of BNB skyrocketed in early 2021 along with the growth of DeFis applications and served as the basis for several projects.
6. Binance USD (BUSD)
Another Binance asset is the stablecoin Binance USD (BUSD), which has a US dollar trail, just like USDT and USDC. Its main purpose is to be a bridge between the traditional financial sector and the decentralized one.
One of the great advantages of this asset is the fact that it is approved and regulated by the New York Department of Financial Services (NTFS), ensuring more security for users.
7. Ripple (XRP)
While Bitcoin is a digital currency, Ripple is a currency exchange and settlement system. The XRP token serves as a liquidity asset for banks and financial agents in this network.
Used by over 100 companies worldwide, the Ripple system offers lower fees compared to other exchange tools.
8. Cardano (ADA)
ADA is the native governance token of Cardano , a proof-of-stake blockchain platform that is based on scientific and mathematical methods. One of the main objectives of the project is to integrate payment services to the issuance of smart contracts, especially for financial institutions.
The token also ensures fast sending and receiving of values through transparent transactions, strengthening the security and sustainability of decentralized societies.
9. Solana (SUN)
Solana is one of the so-called “Ethereum killers”, as it was designed to fix flaws in the Ethereum network and expand its functionality. In 2021, its native token SOL recorded an impressive performance in the market.
Using smart contracts to validate its transactions, the Solana network allows the integration of NFTs and alternative tokens, making niche communities seek the system to develop their protocols. It is used, for example, by the creators of play-to-earn games and metaverse tokens.
10. Dogecoin (DOGE)
One of the most controversial cryptos on the market, Dogecoin is treated as a “meme coin” and is usually inflated by the free lobby of billionaire entrepreneur Elon Musk, strong name of Tesla and SpaceX.
Known in the market by the code DOGE, the crypto emerged in an unpretentious way, almost as a criticism of the crypto universe in general. Currently, it is used on social networks such as Reddit and Twitter, as a reward for users who produce good publications.