1. Ethereum (ETH)
The first Bitcoin alternative on our list, Ethereum (ETH), is a decentralized software platform that enables smart contracts and decentralized applications (dApps) to be built and run without any downtime, fraud, control, or interference from a third party. The goal behind Ethereum is to create a decentralized suite of financial products that anyone in the world can freely access, regardless of nationality, ethnicity, or faith. This aspect makes the implications for people in some countries more compelling because those without state infrastructure and state identifications can get access to bank accounts, loans, insurance, or a variety of other financial products.Â
Ethereum uses ether, its platform-specific cryptographic token. Ether (ETH) is used to pay validators who stake their coins for their work for the blockchain, as a payment method off-chain, and as an investment by speculators.
On Sep. 15, 2022, Ethereum completed its long-anticipated transition to the proof-of-stake (PoS) validation method. PoS is less energy intensive because it removes incentivized mining, makes the blockchain more efficient, and allows it to scale better.
Ether (ETH), launched in 2015, is currently the second-largest digital currency by market capitalization after Bitcoin, although it lags behind the dominant cryptocurrency by a significant margin. Trading at around $1,652 per ETH on August 25, 2023, Ether's market cap of almost $199 billion was less than half of Bitcoin's.
2. Tether (USDT)
Tether (USDT) was one of the first and most popular of the stablecoinsâalternative cryptocurrencies that aim to peg their market value to a currency or other external reference point to reduce volatility. Because most digital currencies, even major ones like Bitcoin, have experienced frequent periods of dramatic volatility, Tether and other stablecoins attempt to smooth out price fluctuations to attract users who may otherwise be cautious.
Tetherâs price is tied directly to the U.S. dollar because the developers claim to hold one U.S. dollar for every circulating USDT. This system allows users to more easily make transfers from other cryptocurrencies back to U.S. dollars in a more timely manner than actually converting to standard currency.#Â
Launched in 2014, Tether describes itself as âa blockchain-enabled platform...to make it easier to use fiat currency digitally.â Effectively, this cryptocurrency allows individuals to utilize a blockchain network and related technologies to transact in traditional currencies while minimizing the volatility and complexity often associated with digital currencies.
On July 22, 2023, Tether was the third-largest cryptocurrency by market capitalization, with a market cap of $83.8 billion and a per token value of $1.00.$
3. XRP
XRP is the native token for the XRP Ledger, created as a payment system by Ripple in 2012. The XRP Ledger uses a consensus mechanism called the XRP Ledger Consensus Protocol, which doesn't use proof-of-work or proof-of-stake for consensus and validation. Instead, client applications sign and send transactions to the ledger servers. The servers then compare the transactions and conclude whether they are candidates for entry into the ledger.
The servers then send the transaction candidates to validators, who work to agree that the servers got the transactions right and record the ledger version.
On July 22, 2023, XRP had a market cap of about $39.3 billion and traded around $0.74.
4. Binance Coin (BNB)
Binance Coin (BNB) is a utility cryptocurrency that operates as a payment method for the fees associated with trading on the Binance Exchange. It is the third-largest cryptocurrency by market capitalization. Those who use the token as a means of payment for the exchange can trade at a discount.
Binance Coinâs blockchain is also the platform on which Binanceâs decentralized exchange operates. The Binance Exchange was founded by Changpeng Zhao and is one of the most widely used exchanges in the world based on trading volumes. Â
Binance Coin was initially an ERC-20 token that operated on the Ethereum blockchain. It eventually launched a mainnet and uses a PoS consensus model. On July 22, 2023, Binance Coin had a $37.3 billion market capitalization, with one BNB valued at around $242.55.
5. USD Coin (USDC)
Another stablecoin, USD Coin, also pegs its price to the U.S. dollar using fiat-collateralized reserves, which means it holds an amount of fiat currency equal to the amount of USD Coin in circulation. USD Coin was launched in 2018 by the Centre Consortium, which consists of Circle and Coinbase. Because Circle is based in the U.S., it is subject to regulation, making USDC a regulated stablecoin.
As of July 22, 2023, USD Coin had a market cap of $30.8 billion and a price per coin of $0.9999.
6. Cardano (ADA)
Cardano (ADA) is an "Ouroboros proof-of-stake" cryptocurrency created with a research-based approach by engineers, mathematicians, and cryptography experts. The project was co-founded by Charles Hoskinson, one of the five initial founding members of Ethereum. After disagreeing with the direction that Ethereum was taking, he left and later helped to create Cardano.
The team behind Cardano created its blockchain through extensive experimentation and peer-reviewed research. The researchers behind the project have written more than 120 papers on blockchain technology across various topics. This research is the backbone of Cardano.
Due to this rigorous process, Cardano stands out among its PoS peers and other prominent cryptocurrencies. Cardano has also been dubbed an "Ethereum killer" because its blockchain is said to be capable of more. That said, Cardano is still in its early stages, with a long way to go regarding DeFi applications.Â
Cardano aims to be the world's financial operating system by establishing DeFi products similar to Ethereum's. It hopes to provide solutions for chain interoperability, voter fraud, and legal contract tracing, among other things. On July 22, 2023, Cardano had the seventh-largest market capitalization at $10.9 billion, and one ADA traded for around $0.31.
7. Solana (SOL)
Founded in 2017, Solana is a blockchain platform designed to support decentralized applications (dApps). Also referred to as an 'Ethereum killer,' Solana performs many more transactions per second than Ethereum. Additionally, it charges lower transaction fees than Ethereum.
Solana and Ethereum can utilize smart contracts, which are essential for running cutting-edge applications, including decentralized finance (DeFi) and non-fungible tokens (NFTs).
The cryptocurrency running on the Solana Blockchain is called Solana (SOL). Since its inception, its price has risen tremendously. Solana had a market capitalisation of $8.4 billion and was valued at around $21 on July 22, 2023, making it the eighth-largest cryptocurrency by market cap.
8. Dogecoin (DOGE)
Dogecoin (DOGE), seen by some as the original âmemecoin,â caused a stir in 2021 as its price skyrocketed. The coin, which uses an image of the Shiba Inu as its avatar, is accepted as a form of payment by some major companies.
Dogecoin was created by two software engineers, Billy Markus and Jackson Palmer, in 2013. Markus and Palmer reportedly created the coin as a joke, commenting on the wild speculation of the cryptocurrency market.
As of July 22, 2023, Dogecoinâs market capitalization was $ 9.9 billion, and one DOGE was valued at around $0.07, making it the ninth-largest cryptocurrency.
9. Tron (TRX)
The TRON Foundation launched in 2017 to provide digital content makers full ownership rights through tokenization and dApps. The thought behind TRX's launch was to give developers a way to create dApps. In 2018, TRON purchased BitTorrent, a popular file-sharing program, and integrated it into the TRON blockchain.
TRON's native token, TRX, is used to pay for on-chain transactions and as a payment method on exchanges. Anyone holding TRX can apply to become a Super Representative, someone with the authority and obligation to validate transactions and create new blocks for the blockchain. The cryptocurrency's consensus mechanism is a tweaked version of Ethereum's proof-of-stake called designated proof-of-stake (DPoS), where the network votes in the super reps.
On July 22, 2023, TRX had a value of $0.085 and a market cap of $7.64 billion.
10. Polygon (MATIC)
Polygon (MATIC) was initially developed as a layer-2 solution to address the issues with Ethereum network congestion and traffic. Recent innovations have allowed it to become a multi-chain system where blockchains can work together using Ethereum's virtual machine.
Polygon uses three layers: Ethereum, Heimdall, and Bor. Bor is a block-producing layer that compiles transactions into blocks and creates a periodic snapshot of the blockchain. The validators on the Bor layer are called block producers. The blocks from the producers are aggregated by the Heimdall layer, which validates all of the blocks created since the Bor layer's last snapshot. It then creates a Merkle tree and publishes the Merkle root to the Ethereum mainnet.
Polygon hosts smart contracts, dApps, NFTS, and has several other solutions for developers to choose from.
On July 22, 2023, MATIC traded at $0.76 and had a market cap of $7.09 billion.
