Bitcoin has been the leading cryptocurrency since the start of the new financial wave in 2008. The first ever cryptocurrency created, its worth has grown over the past decade to hit an all-time high of over $68,000 in 2021.
Of course, with its boom came a multitude of alternatives called “altcoins .”The creators of these coins intend to bring more innovations to the cryptocurrency and overall blockchain-powered industry, apart from being just a means for payment.
As bitcoin has become almost synonymous with cryptocurrency itself, we can’t say for sure whether any of these other cryptocurrency prices will surpass its own. However, our article provides crucial information on the best of these altcoins that have the most growth potential in the crypto space, which include
- Coins powering the new decentralized-finance industry,
- Stablecoins, and
- Coins that are already adopted into the global payment system. Let’s get right in.
Ethereum
Ethereum is the defacto alternative to Bitcoin, as it is both the second most expensive cryptocurrency and has the second largest market cap in the crypto industry. Hitting an all-time high of $4,867 in 2021, Ethereum offers innovative solutions that have revolutionized the whole space.
The altcoin isn’t just a means of payment but is associated with a blockchain on which other coins and technologies have been deployed. The main focus of the new NFT (Non-Fungible Token) wave has been on Ethereum, and popular metaverse-based projects like Axie Infinity also make use of it.
Although Ethereum coins have been cut down to just over 120 million units, it is still nowhere as scarce as Bitcoin, which has a capped supply of 21 million. It also recently adopted the proof-of-stake framework in 2022, which means more supply, scalability, and reduced energy consumption.
However, these aren’t all why Ethereum is set to take over.
Ethereum Unique Properties
The Ethereum blockchain is the major deployment platform for innovations in decentralized finance. From coins like Uniswap to AAVE and AVA, users can access the most reliable solutions for loans, insurance, investment, and every other financial instrument seen in traditional systems.
All these DeFi coins also depend on paying gas fees using Ethereum before you may interact with any of them. You then understand that their increased adoption means more demand for Ethereum and a boost in its market cap and cryptocurrency prices.
Binance Coin (BNB)
Experiencing an even quicker growth than Ethereum is the Binance Coin (BNB), which is the native currency for Binance, the largest centralized cryptocurrency exchange on the planet. The coin grew by over 1300% in 2021, with Ethereum growing by just over 450% and Bitcoin growing by about 73%.
BNB holds a market cap of $39 billion, and its potential is all in the activities of its native payment platform. Binance is currently spreading its activities around the world, integrating with traditional payment solutions like VISA and Mastercard.
Binance also has a blockchain of its own called the Binance Smart Chain (BSC), which is a centralized alternative to Ethereum but with lower fees and more security. It makes use of the proof-of-stake framework featuring 21 validators.
BNB Unique Properties
There are currently over 160 million BNB coins in circulation today, and you’d see that this is more than the supply of Ethereum and Bitcoin. However, Binance implements a burning strategy to increase the coin’s value.
One-fifth of the profit made in the Binance exchange is spent on burning BNB tokens. This means the market cap stays the same while the coin supply decreases, increasing its value.
The reduced cost of transactions on BSC has also attracted a lot of individuals seeking financial solutions with cryptocurrency. As BNB is a must-have to interact with Binance’s centralized solutions, you expect an increased demand for it.
Stablecoins: USDT/USDC
One criticism of Bitcoin that works against its adoption is its volatility, as just in the year 2022 alone, its value dropped by over 50%. This begs the question of whether we would like to base real-world transactions on volatile assets like cryptocurrency. Well, we have solutions that exist in the cryptocurrency space; stablecoins.
Stablecoins are cryptocurrencies with their price pegged to the US Dollar and backed by massive reserves. The potential of stablecoins to replace Bitcoin isn’t about surpassing its value but lies in them being a less volatile alternative for cryptocurrency adoption.
What are the best stablecoins available? These are USDT and USDC.
About USDT and USDC
USDT (Tether) was first deployed in 2014 by iFinex Inc and has grown to attract investors and users. Today, it has a market cap of over $66 billion, making it the largest stablecoin and the third-largest cryptocurrency in the industry.
USDC (USD Coin), on the other hand, was more recently launched in 2018 by Circle and has a market cap of just over $52 billion today. It is the second-largest stablecoin and the fourth-largest cryptocurrency overall in market cap and trading volume.
XRP (Ripple)
Ripple is a highly adopted solution or platform for sending cross-border payments worldwide. Like SWIFT, the platform utilizes its native token or cryptocurrency, XRP, which makes payments much faster than legacy systems.
Although its market cap is just over $16 billion, XRP is rapidly becoming an integral part of the payment processing framework of many banks worldwide. These include popular establishments like Western Union, Barclays, Standard Chartered Bank, SBI Holdings, and The Royal Bank of Canada, to mention a few.
Although Bitcoin is the more popular asset used for general cryptocurrency payments, XRP offers a platform specifically dedicated to payment processing. As a result, it gives a faster processing time and is a more feasible crypto option for large payment processing institutions like banks.
Other Coins To Watch Out For
Some of the coins that also deserve honorable mentions include Solana, Algorand (from the Algorand DeFi framework), Cardano (which implements a more effective proof of stake framework), and Polkadot (which aims to support interoperability amongst different blockchains).
With all these in their early stages, adoption is set to be at a fast pace in the near future. As a result, you will surely see an increase in cryptocurrency prices.
Conclusion
Bitcoin is definitely going nowhere due to its massive adoption. However, the solutions accompanying some of the altcoins give them (as well as their cryptocurrency prices) a higher potential for growth in the far future. Of course, none of this is financial advice, and you are employed to do your research before investing in any of these.
