We know Bitcoin is up and is already past its previous all-time high set in 2021. Crypto gurus think that the first and largest cryptocurrency is heading toward the $100,000 mark. But what about others, the so-called altcoins?
In this article, I will introduce you to some cryptocurrencies that are expected to make large strides in April 2024. Buckle up and let’s get started.
Ether (ETH)
Market cap: $432 billion
Ether is the native cryptocurrency of the Ethereum blockchain. Launched in 2015, it is probably the first altcoin to take off. It has retained the position of the second most valuable cryptocurrency, for as long as we can remember.
At $432 billion, Ether constitutes over 16% of the market cap of the entire cryptocurrency market capitalization. Unlike Bitcoin, Ethereum is not just a blockchain that offers a rock-solid payment system.
Ethereum has introduced something called smart contracts. These are computer programs that allow the deploying of applications known as dApps on top of the blockchain.
Recently, Ethereum transitioned from a proof-of-work verification mechanism to an energy-efficient proof-of-stake consensus.
BNB (BNB)
Market cap: $86.4 billion
BNB was originally created by the crypto exchange Binance as the platform’s utility token. Built on the Ethereum network, BNB has since become Binance’s blockchain and its applicability has expanded to other use cases, including offers and discounts on the Binance exchange.
BNB is a deflationary token that is programmed to automatically burn its supply each time a new block is created. After a standalone SEC crackdown that has caused BNB prices to crash, the token has become a value buy.
Solana (SOL)
Market cap: $84.6 billion
The Solana network offers smart contracts and it was launched in 2020 as an alternative to then-resource-intensive Ethereum. The platform allows the development of dApps and NFTs.
The mainnet uses a combination of proof-of-stake and proof-of-history verification systems as its consensus mechanism. This attribute makes Solana faster and cheaper compared to other platforms that offer smart contracts.
However, the network has witnessed quite a few outages, most notably a 20-hour downtime in 2023, since its inception.
Cardano (ADA)
Market cap: $23.5 billion
Cardano was launched in 2017 as a reply to the energy-intensive nature of the incumbent blockchains like Bitcoin and Ethereum which were using proof-of-work (PoW) consensus verification at the time.
Cardano introduced the proof-of-stake (PoS) consensus, which consumes less than 1% of electricity compared to its predecessor.
Notably, the platform was founded by Charles Hoskinson, one of the co-founders of Ethereum. Cardano focuses on dApp development and smart contracts.
Cardano is powered by its native cryptocurrency ADA which primarily serves as the default means of exchange within the chain. ADA is also used for staking, which is pivotal in the chain’s PoS consensus.
XRP (XRP)
Market cap: $34.5 billion
XRP is often referred to as Ripple, the global payments company behind the project. XRP was designed as a faster and more transparent alternative to SWIFT, the most widely used international payment method.
XRP is the preferred means of exchange on the Ripple platform. However, XRP is built on a blockchain with the same name, not Ripple.
However, this blockchain operates differently from the others. Though anyone can download its validation software, it maintains a list of nodes that users can select to verify their transactions, according to credibility. Though this aspect makes the blockchain less decentralized, it makes the platform more efficient and quick.
Polkadot (DOT)
Market cap: $13.7 billion
The Polkadot blockchain was launched in 2020 by Gavin Wood, another Ethereum co-founder. The platform serves as a bridge between multiple blockchains.
This will allow better market exploration, allowing value and data to be transferred between chains. The network features something called parachains, which are user-created blockchains that can leverage the security of the mainnet.
These smaller chains will allow it to take off and compute the transactions from the Polkadot mainnet, thereby improving its efficiency. The network uses an improvised form of PoS, known as nominated proof-of-stake consensus.
Conclusion
After the launch of Bitcoin ETFs in the US and the speculations surrounding the upcoming Bitcoin halving event, the cryptocurrency market, altogether, is getting heated up. Along with the market leader Bitcoin, other cryptocurrencies and tokens are making news.
Owing to the larger practical upside potential, some altcoins are giving bigger returns to investors compared to Bitcoin. All being said, the crypto market continues to be highly volatile and unpredictable.
