Alternatives to the original cryptocurrency Bitcoin, altcoins feature the same basic functions as the original, among which the majority are based on the Bitcoin blockchain.
Although thousands of altcoins exist as of now, only a few of them were able to establish themselves as viable options for investors.
Here is a list of the top seven that you would need to keep an eye on in 2024 as they show great potential to become worthy investments in the present as well as in the future.
1. Ethereum
Market Cap: USD 388.05B
Ethereum, which currently is the most popular altcoin, was launched in 2015 with the intention of expanding the possibilities of blockchain technology beyond financial transactions.
The native token of the platform Ether is now valued at USD 3168.52, making it the most valuable altcoin of the present.
Unlike Bitcoin, which is a store of value, Ethereum hosts smart contracts and offers a vast platform that allows users to run decentralized applications or dApps on the blockchain.
Although criticized for high transaction fees, Ethereum has evolved into a comparatively greener and more sustainable network over the years.
2. Solana
Market Cap: USD 60.49B
Launched in 2020, Solana is a decentralized altcoin platform that supports smart contracts, dApps, and non-fungible tokens.
The platform features a hybrid proof-of-stake and proof-of-history mechanism that makes it unique, and faster than other cryptocurrency networks including Ethereum.
The platform is highly scalable and has a comparatively lower transaction fee.
One factor that affects its popularity is the occasional outages and downtime, undermining its credibility among investors. Except for this occasional lack of consistency, Solana is a great option for investment in 2024, especially considering the market cap and returns.
3. BNB
Market Cap: USD 88.73B
Native to the cryptocurrency exchange Binance, BNB is a utility token created by the platform originally on the Ethereum network to pay trading fees and get discounted trades on the exchange.
However, its use is not restricted to the native platform but outside it for activities like payment processing.
BNB now runs on Binance’s own blockchain and is not as decentralized as the rest of the altcoins. Although it took a hit in 2023 due to the Exchange’s issue with the US SEC, it is on the path to gaining more investors and growing into one of the top altcoins of the year 2024.
4. XRP
Market Cap: USD 28.53B
One of the oldest cryptocurrencies, developed by the payment processing company Ripple Labs, XRP was released in the year 2012 as a native token of the platform.
XRP ledger, the virtual ledger of the token that allows custom tokenization, is known as the first-ever decentralized exchange.
The present popularity of the coin is due to two reasons – the coin, with its open source technology, is greener when compared to several other digital currencies, and the ruling of the court in favor of cryptocurrencies, declaring them “not necessarily a security” and putting it outside the jurisdiction of SEC.
5. Dogecoin
Market Cap: USD 20.62B
Dogecoin is an altcoin created as a joke in 2013, the first meme coin. However, the token evolved into one of the most prominent digital currencies of the time, owing to a dedicated follower base and creative memes.
Unlike Bitcoin, Dogecoin does not have a maximum supply, and on average 14,400,400 new coins are created every day, where the miners earn 10,000 tokens per block.
In terms of volatility, Dogecoin is far more volatile than Bitcoin, increasing the associated risk to investors.
Having said that, those who could take advantage of this issue could earn a good amount trading on the coin, making it one of the popular choices today.
6. Cardano
Market Cap: USD 16.05B
Cardano is a network created by Charles Hokinson, the co-founder of Ethereum. Unlike Ethereum or Bitcoin which are proof-of-work blockchains, Cardano is a proof-of-stake network that features faster and cheaper transactions.
The platform was launched in 2017 with ADA as its native token that facilitates transactions on the network and runs decentralized Applications.
The token can also be used to create income through staking, which in turn verifies and secures the network’s transactions.
7. Shibu Inu
Market Cap: USD 14.11B
Shiba Inu is another Ethereum-based meme coin, launched in 2020. The coin was developed as an experiment by an anonymous creator known as ‘Ryoshi’ to see whether such a network could work without a central leadership.
The network is named after a Japanese dog breed of the same name and has the dog as its mascot.
At one point, in October 2023, Shibu Inu even surpassed Dogecoin as the most valuable meme coin of the time.
The native coin of the platform SHIB is widely used today, especially since crypto promoters like Elon Musk and Vitalik Buterin invested in the currency, proving the founder’s point.
The Bottom Line
One noticeable thing regarding these top currencies is that, although most provide the same basic functions, the more they differ in additional utilities, the more popular they are.
Ethereum is the primary example of this. Apart from this, new technologies like the proof-of-stake mechanism that offers cheaper and faster transactions have also added to the popularity of some of these tokens.
Anyway, the above seven are the ones that top the list of altcoins for the year 2024, and with informed investment decisions, investors could earn a good amount trading on these tokens.
