As we enter February 2023, the cryptocurrency landscape is continuing to evolve. The cryptocurrency market offers more than just Bitcoin, with a wide variety of altcoins that can serve different purposes. This article takes a glance at the 10 most capitalized altcoins outside of stablecoins.
1. Ethereum (ETH)
Ethereum (ETH) is currently the biggest altcoin on the market, with a market cap of $148 billion and representing over 17% of the total crypto asset market capitalization. It is often referred to as a distributed computing network that enables users to run decentralized applications (dApps) and host smart contracts. Ethereum has been criticized for its high fees for conducting transactions, but this hasn't stopped thousands of apps and other altcoins from being powered by its blockchain. Despite any criticisms, it looks like Ethereum is here to stay as a major player in the cryptocurrency space.
2. Binance Coin (BNB)
Binance Coin (BNB) is a utility token that has gained immense popularity as a payment solution on the Binance Exchange, allowing users to pay for trading fees at discounted rates. The coin has grown in value significantly, with its market cap reaching an impressive $39 billion. While some critics have argued that BNB is not as decentralized as other altcoins, it remains one of the most popular and trusted tokens in the crypto world. However, there is some risk associated with BNB due to an ongoing investigation by the Securities and Exchange Commission (SEC) into whether Binance should have registered it during its initial coin offering. Nevertheless, with its increasing usability and popularity, BNB is expected to remain one of the top altcoins to watch in 2023.
3. XRP (XRP)
XRP, sometimes called Ripple, is an altcoin with a market capitalization of $17.3 billion. It is used to facilitate international payments and currency exchanges between different currency types enabled by the digital technology of payment processing company Ripple Labs. XRP has extremely low transaction fees compared to other cryptocurrencies, but it faces legal challenges. The SEC is currently engaged in a lawsuit against Ripple and two of its executives for allegedly failing to register XRP as a security instead of a currency. Despite these legal issues, XRP remains one of the top 10 altcoins to watch out for in 2023 as it continues to develop its technology and become more widely accepted by businesses and investors alike.
4. Dogecoin (DOGE)
Dogecoin (DOGE) is a prime example of how far a meme coin can come. Originally started as a joke in 2013, its market cap has since risen to an impressive $9.3 billion. While it remains riskier than Bitcoin due to its lack of real-world use cases, DOGE has had the backing of some major players in the crypto space and continues to be popular among traders and investors.
Moreover, its dedicated community and creative memes have allowed Dogecoin to stay relevant throughout the years. As Garry Krugljakow, founder of 0VIX Protocol, explains: “Altcoins like DOGE can fluctuate to extreme lows and highs depending on market volatility since they have yet to prove real-world use cases”. Despite this uncertainty, DOGE looks set to be one of the top altcoins for 2023—watch this space!
5. Cardano (ADA)
Cardano (ADA) is one of the most promising altcoins for 2023. With a market cap of $8.7 billion, ADA has been an early adopter of the proof-of-stake consensus mechanism, which drastically speeds up transaction time and offers higher security than many of its counterparts. According to blockchain network provider and consultancy LedgerByte’s CEO Daniel Logvin, ADA has “promised too much and has yet to deliver”. Despite this, industry expert Chris Holmes believes that Cardano is a thought leader in the industry that will continue to be influential in the years to come. With its low fees, high levels of security and innovative consensus mechanisms, Cardano is sure to be one of the top altcoins to watch in 2023.
6. Polygon (MATIC)
Polygon (MATIC) is an Ethereum-based scaling platform that is gaining momentum in the cryptocurrency market. With a current market cap of $6.8 billion, Polygon has become a popular choice for developers to build dApps with low transaction fees. It allows people to process transactions on top of the Ethereum network, reducing gas fees significantly compared to Ethereum's own network. By utilizing Polygon's solution, developers are able to save money and increase efficiency when creating new applications. As more projects begin to use this platform, it is expected that its value will continue to grow, making it one of the top 10 altcoins to watch in 2023.
7. Litecoin (LTC)
Litecoin (LTC) is one of the original altcoins, designed to improve several of Bitcoin's perceived shortcomings. Its market cap is currently $5.4 billion and it has some notable differences from Bitcoin. LTC is built to be used in everyday transactions, whereas Bitcoin has evolved into more of a “store of value”. One major difference between the two cryptocurrencies is the issue of supply: while Bitcoin is capped at 21 million coins, Litecoin has a maximum supply of 84 million coins. This means that Litecoin can be used for larger transactions without experiencing liquidity issues. In addition, its faster transaction processing speeds make it ideal for day-to-day payments and transfers. With its increased utility, lower fees and greater scalability, Litecoin stands out as one of the top altcoins to watch in 2023.
8. Polkadot (DOT)
Polkadot (DOT) is an altcoin that has been steadily gaining traction in the market with a current market cap of $5.2 billion. It powers the Polkadot ecosystem, where developers can connect and build specific-purpose blockchains onto the main Polkadot blockchain hub. DOT is the native token for Polkadot, and there is a sustained demand for it from projects aiming to use its platform. Moreover, this altcoin has better-shared security and is leading the way in developer activity and many projects. However, project progress has been slow, preventing it from having any star applications that could boost its ecosystem. With these factors considered, Polkadot (DOT) looks to be one of the top 10 altcoins to watch in 2023.
9. Tron (TRX)
Tron (TRX) is a blockchain that developers can use to share media content and create decentralized applications. In terms of market cap, it currently stands at $5.1 billion. Moreover, Tron also has a healthy total value locked (TVL) of $5.2 billion, according to DeFi Llama. This high TVL indicates the popularity of the protocol and the adaption rate of TRX as a cryptocurrency. With these impressive figures and its potential to revolutionize the media industry, TRX is definitely one of the top 10 altcoins to watch in 2023.
10. Solana (SOL)
Solana (SOL) is an up-and-coming altcoin with a current market cap of $4.7 billion. Developed to help power decentralized finance, apps and smart contracts, Solana runs on a hybrid proof-of-stake and proof-of-history mechanisms to provide fast and secure transactions. It's one of the fastest blockchains available, but has faced criticism for being too centralized with very few validating nodes compared to Ethereum. Despite this, it's highly scalable with low fees - although there have been some outages and downtime reported. SOL is definitely one of the top altcoins to watch in 2023 due to its innovative technology and potential for growth in the future.
