A lot of things have happened in the last week, a cryptocurrency named Terra(LUNA) has gone from being a top 10 cryptocurrency to worthless shit within a span of four days. At its peak, the market cap of Terra was around $45 billion and it was reduced to $6 million due to a massive sell-off led by the de-pegging of the stable coin UST.
The total cryptocurrency market capitalization stands at $1.289 trillion. The total cryptocurrency market cap has topped $3 trillion in November 2021 and has fallen more than 50% since then. Here are the top 10 cryptocurrencies in market cap(Data as of May 24, 2022).
Top 10 Cryptos
1. Bitcoin(BTC)
- Price: $29,332
- Market Cap: $550,183,061,164
Bitcoin is the first and number one cryptocurrency as always. There is no particular reason for the recent price action of Bitcoin because Bitcoin is running the way it has been programmed and there are no major flaws so far. Bitcoin price in correlation with US indices such as S&P 500 recently. S&P 500 depends on top US tech companies and global economic conditions. So both S&P 500 and Bitcoin have been in a downtrend since the beginning of 2022 and with the rise of interest rates, things are only going to get worse in the next few months.
2. Ethereum(ETH)
- Price: $1,958
- Market Cap: $232,480,267,365
Ethereum as we know is a smart contract platform. The price of altcoins mostly follows Bitcoin and has been the trend with Ether. A lot of dapps have been developed in the last year on Ethereum and along with NFTs, the network has been stressed. The gas fees or the transaction fees are all still a bit on the higher side costing more than $5 for a simple transfer. Ethereum 2.0 was supposed to launch in July or August of 2022 and it is uncertain at this point whether is good or bad for Ether price.
3. Tether(USDT)
- Price: $1
- Market Cap: $73,335,795,095
Tether(USDT) is a stable coin pegged to US Dollar. USDT is backed by actual US Dollars in the bank of the institution which makes it centralized. UST is an algorithmic stable coin that has failed and the price went to as low as $0.04. As long as there are actual USD to back the USDT tokens in circulation, it is good to go and the founder of Tether has produced the assets which are used to back USDT.
4. USD Coin(USDC)
- Price: $1
- Market Cap: $53,426,717,649
USDC is another stable coin pegged to US Dollar. Stable coins are very much necessary when there is a market downturn and investors chose stable coins to buy the dips later or use them to hedge their portfolio from the downside. USDC is the most trusted stable coin which is controlled by an institution called Circle.
5. Binance Coin(BNB)
- Price: $322
- Market Cap: $52,858,194,433
Binance Coin is the exchange token of the largest cryptocurrency exchange, Binance. Binance has had a trading volume of $15 billion dollars in the last 24h. Binance coin(BNB) helps users to get discounts on trading fees. Users can also stake their BNB to earn rewards and participate in the Binance Launchpad. Binance Smart Chain(BSC) is a smart contract platform on which transaction fees are paid using BNB. BNB has many use cases and it is backed by the largest crypto exchange.
6. Ripple(XRP)
- Price: $0.4
- Market Cap: $19,451,057,445
Ripple XRP is the native token of the open-source distributed ledger XRPL. Ripple Net is the global payment network that is built on the XRP ledger. XRP is used for cheap and faster transactions across borders. XRP has once been the second-largest cryptocurrency.
7. Binance USD(BUSD)
- Price: $1
- Market Cap: $18,338,487,404
Binance USD or BUSD is another stable coin pegged to US Dollar. Binance USD is backed by assets like USD in their bank and it is one of the trusted stable coins as Binance issues it. Anyone can redeem one BUSD for one USD.
8. Cardano(ADA)
- Price: $0.5
- Market Cap: $17,287,674,710
Cardano is a smart contract platform to build decentralized applications. Cardano was supposed to be better than Ethereum, with faster and cheaper transactions. But the platform is not yet built and the tech behind it is said to be not feasible for a large number of transactions. Yet it is popular on crypto twitter and the newcomers are always attracted to buy it. ADA is the native token of the Cardano ecosystem.
9. Solana(SOL)
- Price: $49.56
- Market Cap: $16,660,079,203
Solana is another smart contract platform but it works. Transactions of Solana are very much cheaper costing less than $0.01 and faster. A lot of good decentralized applications are built on Solana. Solana often has a degraded performance and goes offline sometimes. SOL is the native token of the Solana blockchain, which is used to pay the transaction fees.
10. Polkadot(DOT)
- Price: $10
- Market Cap: $11,118,964,352
Polkadot aims to build interoperable blockchains through specialized chains called Parachains. Transactions would be faster and cheaper than Ethereum. Polkadot mainnet will be launched in a few years. It is in its building phase and Polkadot has conducted parachain auctions recently. DOT is the native token of the Polkadot ecosystem.
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