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The case for cryptocurrencies as a legitimate asset class remains strong in 2024. Investors have witnessed significant developments aimed at making cryptocurrencies more accessible to the everyday investor. Notably, sizable Bitcoin ETFs have been launched in the US by reputable asset management companies such as BlackRock and Fidelity. However, Bitcoin is just one of many cryptocurrencies available for investment. Numerous alternative cryptocurrencies are traded on specialised crypto exchanges. Ethereum stands out as a prominent alternative to Bitcoin despite being launched relatively recently in 2015. But what about other major cryptocurrencies? For those interested in understanding the largest cryptocurrencies by market capitalization, here are the top 10 in the world. Bitcoin, widely recognized as the default cryptocurrency, holds the position of the world’s largest by market capitalisation. It is the only cryptocurrency with a market cap exceeding US$1 trillion, currently standing at approximately US$1.36 trillion. Bitcoin emerged from a free-market ideology. It operates via an electronic ledger and is independent of any fiat currency. This decentralised nature allows Bitcoin to be traded in fractions, making it highly accessible. Created in 2008 by the pseudonymous Satoshi Nakamoto, Bitcoin entered the trading scene in 2009 at a value of $0. Initially, its price remained relatively stagnant until late 2010. However, strong gains by mid-2011 propelled its value to US$26.90. Since then, Bitcoin has experienced several significant booms and busts. Despite these fluctuations, the overall trend has been upward. Today, Bitcoin trades at just under US$70,000. In 2024, Bitcoin has already risen by 57%. Ethereum, one of the most significant alternatives to Bitcoin, holds the second-largest market capitalization at approximately US$441 billion. Created by Russian-Canadian programmer Vitalik Buterin in 2013 and launched in 2015, Ethereum was designed as an open-source blockchain capable of securely executing “smart contracts.” These contracts have terms of agreement written directly into code, allowing for automated and trustworthy transactions without intermediaries. Initially intended for financial transactions, Ethereum pioneered the concept of smart contracts. While Bitcoin operates on a “proof-of-work” mechanism, where miners solve complex algorithms to add new blocks to the blockchain, Ethereum transitioned to a “proof-of-stake” system in 2022. This consensus mechanism processes transactions and validates entries, enhancing the security of the distributed database. The switch to proof-of-stake has also made Ethereum more scalable and energy-efficient through staking. Currently, Ethereum trades at around US$3,680. In 2024, Ethereum’s performance has paralleled Bitcoin’s, with both cryptocurrencies up by 57%. Tether, founded in 2014, is best known for its USDt token, which currently boasts a market capitalisation of US$112 billion. Its primary design is straightforward: it was created to maintain a peg of USD 1 per token. This means that Tether holds USD 1 worth of reserve assets for each USDt token issued. Tether provides stability as a “stablecoin” by offering tokens pegged to various currencies. However, due to the importance and size of the US Dollar, the USDt token is the largest and most significant of Tether’s offerings. Tether USDt aims to mitigate the short-term volatility typically associated with broader cryptocurrencies. Its prominence grew significantly after it began trading on the BitFinex exchange in 2015. All stablecoins, including Tether USDt, are designed to trade at a consistent value of USD 1, providing a reliable alternative to the cryptocurrency market. Binance Coin, or BNB, is the cryptocurrency that powers the BNB Chain ecosystem. It was created in July 2017 and has a total market capitalisation of US$101 billion. BNB has multiple uses beyond being a cryptocurrency. Primarily, it supports a wide range of applications and use cases within the BNB Chain, a blockchain ecosystem designed for the decentralised web, also known as Web 3.0 or Web3. BNB can be used to pay for goods and services, settle transaction fees on Binance Smart Chain, and participate in exclusive token sales. BNB trades for approximately US$690, and its price has increased by 120% so far in 2024. Solana, a cryptocurrency created to improve upon Ethereum, has a market capitalisation of US$75 billion. Named after a small coastal city in Southern California, Solana launched in March 2020 and has quickly become popular for conducting transactions on its network. The Solana blockchain primarily uses a “proof-of-history” consensus mechanism, which utilises timestamps to define the next block to be created in the chain. This system offers Solana faster transaction speeds than Ethereum at a lower cost. Currently, Solana costs around US$163 and has risen by 60% so far this year. USD Coin (USDC), like USDt, is a digital stablecoin pegged to USD 1, with a market capitalisation of US$32 billion. It was started in 2018 by the Centre Consortium, a partnership between peer-to-peer payments provider Circle and crypto exchange operator Coinbase, as an alternative to USDt. USDC first appeared on the Ethereum blockchain but is now available on several other blockchains. Functioning similarly to USDt, USDC offers cryptocurrency traders a safe haven during periods of market volatility by being backed by US Dollar cash. Ripple’s XRP, a cryptocurrency launched in 2012, operates on a blockchain-based digital payments network. XRP has a market capitalisation of US$28 billion and is primarily used to facilitate cross-border payments and provide crypto liquidity to businesses. Built specifically for payments, XRP has grown to help Ripple serve as a payment settlement asset exchange and remittance system. XRP currently trades for US$0.50 and has declined by 21% in 2024. Dogecoin (DOGE), known as a “meme coin,” has a market capitalisation of US$21 billion. Created by two software engineers in late 2013, the coin features a dog as its mascot and was initially intended as a joke to mock the speculation in cryptocurrencies at the time. Dogecoin gained fame when Tesla CEO Elon Musk tweeted, “Dogecoin might be my fav cryptocurrency,” in 2019. Currently, Dogecoin trades for around US$0.15 and has risen by 61% in 2024. Toncoin is the native cryptocurrency of Telegram Open Network (TON), created by messaging service provider Telegram in 2018. It has a market capitalisation of US$18 billion. Telegram raised US$1.7 billion to fund its blockchain development, aiming to compete directly with Ethereum. Toncoin is used for various purposes, including processing fees for transactions and smart contracts. Toncoin trades for around US$7.40 and increased by 219% in 2024. Cardano (ADA), rounding out the top 10, was founded in 2015 and has a market capitalisation of US$16 billion. It is an open-source, smart-contract-enabled blockchain that uses a proof-of-stake consensus mechanism to ensure transaction validation. Cardano was created with sustainability and stability in mind, prioritising these factors over speed. Cardano trades for around US$0.44 and has declined by 29% in 2024. Receive a Welcome Rebate of up to $150 when you trade with IG. Simply your account, and trade CFDs during your Welcome Period.* *T&Cs apply. CFD Losses can exceed deposits. Refer to Risk Disclosure Statement and Risk Fact Sheet at IG.com/sg