With the increasing popularity of cryptocurrencies, many investors are exploring altcoins as a way to diversify their portfolios and potentially invest in unique technologies and use cases. Altcoins, which refer to any digital currencies that are not Bitcoin, offer a wide range of features and functions that could make them appealing investment options. In this blog, we’ll explore the top 10 altcoins that you should be aware of this year by looking at each coin’s history, technology, community, and market performance.
Whether you are a seasoned crypto investor or just starting out, this blog will help you stay informed about the latest developments in the altcoin market. So let’s dive in and discover the top 10 altcoins of 2023!
Note: We’ve organized this list by smallest to largest market capitalization, and excluded stablecoins.
Ethereum (Market Cap: $199 billion)
Ethereum is one of the most popular altcoins and a leading blockchain platform that enables developers to create decentralized applications (DApps) and smart contracts. Its popularity stems from its versatility, as it provides a flexible and programmable blockchain that can be customized to meet various use cases.
The Ethereum platform has also become a hub for the development of other altcoins, known as ERC-20 tokens, which can be built on top of the Ethereum blockchain. As a result, the popularity of Ethereum has led to the creation of many other altcoins that leverage its technology and infrastructure. This has established Ethereum as a critical player in the cryptocurrency market, and its influence is expected to continue to grow in the years to come.
Binance Coin (Market Cap: $47 billion)
Binance Coin is another popular altcoin that has gained significant popularity in recent years. Binance is one of the world’s largest cryptocurrency exchanges, and BNB is the exchange’s native token. BNB has many use cases, including trading fee discounts, access to certain features on the Binance exchange, and payment for goods and services on platforms that accept BNB.
XRP (Market Cap: $19 billion)
XRP is a popular altcoin that was created by Ripple, a fintech company that focuses on cross-border payments. XRP is unique in that it is designed to facilitate fast and inexpensive cross-border transactions, making it an attractive option for businesses and individuals looking to send money across borders. XRP’s popularity also stems from the fact that it is not mined like other cryptocurrencies but instead relies on a network of validators to verify transactions. Additionally, Ripple has partnered with many major financial institutions, which has helped to increase the adoption of XRP as a payment option. Despite facing some legal challenges from the U.S. Securities and Exchange Commission (SEC) in recent years, XRP remains a popular altcoin with a strong community of supporters.
Cardano (Market Cap: $12 billion)
Cardano is a popular altcoin that was founded by Ethereum co-founder Charles Hoskinson. Cardano aims to provide a more secure, sustainable, and scalable blockchain platform that can be used to build decentralized applications and services. Its unique proof-of-stake consensus mechanism, known as Ouroboros, is designed to be energy-efficient and eco-friendly, making it an attractive option for those concerned about the environmental impact of cryptocurrency mining. According to Charles Hoskinson, “Cardano is a third-generation blockchain, which means it’s designed from first principles to be sustainable, secure, and scalable. It’s a very different animal from the first- and second-generation blockchains that came before it.”
Dogecoin (Market Cap: $10 billion)
Dogecoin has emerged as a popular altcoin, despite its origins as a meme-inspired cryptocurrency. Its appeal lies in its unique branding, celebrity endorsement, and growing acceptance as a payment option. Elon Musk, the CEO of Tesla and a prominent figure in the crypto industry, has been a vocal supporter of Dogecoin. In a tweet from February 2021, Musk stated, “Dogecoin is the people’s crypto,” alongside a photo of a rocket taking off with the Dogecoin logo superimposed on it. Musk’s comments and tweets have been known to influence Dogecoin’s price, as seen in the surge following his tweets.
Polygon (Market Cap: $10 billion)
Polygon, formerly known as Matic, is a popular altcoin that aims to provide a scaling solution for Ethereum. Its innovative technology allows for faster and cheaper transactions on the Ethereum blockchain, making it an attractive option for developers and users alike. One of the creators of Polygon, Sandeep Nailwal, has stated, “Polygon is Ethereum’s internet of blockchains. It provides a multi-chain system and framework for building scalable decentralized applications and interoperability between chains.” Nailwal’s vision for Polygon has resonated with many in the cryptocurrency community, and its growing popularity is a testament to the success of its technology and potential for future growth.
Solana (Market Cap: $8 billion)
Solana is a popular altcoin that aims to provide a faster and more efficient blockchain for decentralized applications. Its unique technology, known as “Proof of History,” allows for faster transaction processing and lower costs than other blockchain networks. Its success has also been attributed to its growing ecosystem of decentralized applications and its support from major players in the industry. Solana has been referred to as the “Ethereum Killer” by some in the cryptocurrency community, as it offers a viable alternative to Ethereum’s high transaction fees and slow processing times.
Polkadot (Market Cap: $7 billion)
Polkadot aims to provide a more interconnected and scalable blockchain ecosystem. Polkadot’s popularity has been on the rise in recent years, with many investors and developers showing interest in its potential for growth and scalability. Its growing ecosystem of decentralized applications, such as Acala and Moonbeam, is also contributing to its success. In a tweet from June 2021, Gavin Wood, the founder of Polkadot, stated, “Polkadot is becoming the foundation of a new wave of open-source innovation.” Wood’s vision for Polkadot as a platform for decentralized innovation has resonated with many in the cryptocurrency community.
Litecoin (Market Cap: $6 billion)
Litecoin is a popular altcoin that was created as a “lighter” version of Bitcoin. Its technology is based on the same underlying principles as Bitcoin, but with some key differences, such as faster block generation times and a different mining algorithm. Litecoin’s popularity has been on the rise in recent years, with many investors and traders showing interest in its potential for growth and use as a transactional currency. Its success can also be attributed to its high liquidity and adoption by merchants and payment processors.
Shiba Inu (Market Cap: $6 billion)
Shiba Inu is a relatively new altcoin that has gained significant attention and popularity in the cryptocurrency market. It is a meme-inspired cryptocurrency created in August 2020 and is designed to be the “Dogecoin Killer,” as it is also based on the popular dog breed. Shiba Inu’s popularity can be attributed to its strong community and its use in various decentralized finance (DeFi) applications. The altcoin’s price soared in October of 2021, reaching an all-time high of $0.000086. While the altcoin’s popularity has somewhat faded since its price surge, it remains a popular option for traders and investors in the cryptocurrency market.