Top Cryptocurrencies Explained: What You Need To Know

A look at Bitcoin, Ethereum and more

The cryptocurrency market has exponentially grown over the past decade, evolving from a technological breakthrough into a trillion-dollar global phenomenon. There have been numerous cryptocurrencies that have become prominent due to their innovation, robust technology, market value and utility.

Here’s an overview of some of the top cryptocurrencies in 2024:

Bitcoin (BTC)

Bitcoin is the original cryptocurrency, created in 2009 by an anonymous entity known as Satoshi Nakamoto. It operates on a decentralized ledger called blockchain. It has become the mainstream cryptocurrency, to the point that all other cryptos are called Altcoins, as alternatives to Bitcoin. The Bitcoin Whitepaper mentions that Bitcoin was an answer to the financial sovereignty of traditional ways of exchange.

Bitcoin's distribution supply is capped at 21 million coins, making it a deflationary asset. The highest price it has reached so far is $73,780.07 per Bitcoin, and is often referred to as "digital gold" due to its store-of-value properties. Bitcoin's network uses a proof-of-work consensus mechanism, requiring miners to solve complex puzzles to validate transactions​.

Ethereum (ETH)

Ethereum was launched in 2015 by Vitalik Buterin. It extends blockchain technology beyond financial transactions to support smart contracts and decentralized applications (dApps). In other words, it’s not just a cryptocurrency but a powerful platform for multiple applications, even for creating new cryptocurrencies within it. This is why Ethereum’s native currency, Ether, plays a crucial role within the Ethereum ecosystem, as it’s used to pay for transaction fees and computational services. 

In 2022, the Ethereum network transitioned from a proof-of-work to a proof-of-stake consensus mechanism to improve scalability and reduce energy consumption​​​.

Tether (USDT)

Tether is a blockchain-enabled platform designed to facilitate the digital usage of fiat currencies. It is a stablecoin, meaning that its value is pegged to a fiat currency, in this case, the US dollar. It was introduced in 2014 to provide stability in the volatile crypto market. 

USDT is widely used in trading and to move money between exchanges without the risk of significant price fluctuations. Tether claims that each token is backed by reserves of fiat currency and other assets​​.

Binance Coin (BNB)

Binance Coin is the native cryptocurrency of the Binance Exchange, one of the largest crypto exchanges globally. It was initially created on the Ethereum blockchain in 2017 but has since migrated to Binance's own blockchain, the Binance Chain.

BNB can be used to pay transaction fees on the Binance platform, participate in token sales, and many more ways. It also uses an Auto Burn system that reduces the coin supply over time, which can increase its value.

Solana (SOL)

Solana is an open-source project that provides a blockchain built for mass adoption. It’s known for its high performance and scalability, supporting thousands of transactions per second with low fees. 

Solana's blockchain uses a unique consensus mechanism called Proof of History (PoH) combined with Proof of Stake (PoS), which enhances its speed and efficiency. It’s a popular platform for decentralized applications and DeFi projects​.

USD Coin (USDC)

USD Coin is a major stablecoin. It’s pegged to the US dollar and widely used in the crypto ecosystem for trading, lending, and borrowing. 

USDC is issued by regulated financial institutions and is backed by fully reserved assets, ensuring transparency and trust. It aims to provide a stable and secure digital currency for the global economy​​.

XRP (Ripple)

XRP and Ripple are two different entities, although they are closely related. Ripple is a technological company that aims to provide fast,  low-cost international payments and crypto-enabled business solutions.

XRP is the native cryptocurrency of XRP Ledger, an open-source public Ledger launched in 2012. Ripple products use XRP as a bridge asset to ensure quick liquidity. It uses a unique consensus algorithm rather than mining to validate transactions, making them faster and more energy-efficient. XRP aims to serve as a bridge currency in cross-border transactions​.

Dogecoin (DOGE)

Dogecoin has been created in a more lighthearted spirit than most cryptocurrencies. It was launched in 2013, based on Litecoin’s protocol, and it aimed toward being a more fun crypto that would have greater appeal beyond the core Bitcoin audience. It is a memecoin, a coin designed based on a popular meme, specifically the Doge meme of Kabosu. It has gained a significant following and community support, and Tesla CEO Elon Musk has promoted it.

Dogecoin uses a proof-of-work consensus mechanism similar to Bitcoin but has a faster block time and unlimited supply, which keeps its price relatively low​​. It has been inactive for several years and was relaunched in 2021.

Cardano (ADA)

Cardano is a blockchain open-source platform launched in 2017 that is focused on sustainability, scalability, and transparency in its development.

Its proof-of-stake consensus protocol, called Ouroboros, aims to improve the security guarantees and be more energy efficient than proof-of-work. Cardano's development is divided into stages, each focused on enhancing different aspects of the network​​.

Shiba Inu (SHIB)

Shiba Inu is another memecoin inspired by Dogecoin. It’s known for its vibrant community and lack of central leadership. Founded in 2020, Shiba Inu is a community-driven, decentralized organization.

It operates on the Ethereum blockchain and has introduced various tokens within its ecosystem, including LEASH and BONE tokens, as part of its decentralized exchange platform, ShibaSwap​​.

Toncoin (TON)

TON stands for The Open Network, a decentralized open platform. Initially developed by the team behind Telegram, Toncoin aims to provide fast and secure transactions. It utilizes a unique consensus mechanism and a scalable blockchain design, making it suitable for a wide range of decentralized applications​​.

Tron (TRX)

Tron is a blockchain-based platform that aims to build a decentralized internet and support decentralized applications (DApps). 

It uses a delegated proof-of-stake consensus mechanism, which allows for high transaction throughput and efficiency. Tron also focuses on content sharing and entertainment applications​.

Bitcoin Cash (BCH)

Bitcoin Cash was created as a hard fork of Bitcoin to address scalability issues by increasing the block size limit. Its creation followed a debate within the Bitcoin community in 2017 when the SegWit change was applied to  Bitcoin. 

It aims to provide faster and cheaper transactions compared to Bitcoin. The Bitcoin Cash block size is 32MB as of 2023. Until now, Bitcoin Cash has been the most successful hard fork originated from Bitcoin.