Which cryptocurrency is currently the most important? A look at the market capitalization can help – these are the ten largest cryptocurrencies in 2021.
Of all cryptocurrencies, Bitcoin accounts for the largest share in terms of market capitalization. Ethereum and the digital currency Dogecoin, which was created as a parody of Bitcoin, also land in the top ten largest cryptocurrencies in 2021. An overview of which cryptocurrencies are also among the largest according to their current market capitalization.
These are the ten largest cryptocurrencies by market capitalization 2021
Rank 10: Polkadot (DOT)
The cryptocurrency Polkadot makes it to the tenth place in the current ranking with a market capitalization of around $26.9 billion. The digital currency was founded in 2017 and relies on blockchain technology. The special feature: With Polkadot, different blockchains are connected to each other, which together can communicate with each other as a network.
For experts, cryptocurrencies like Polkadot are considered the future of the financial world. In the future, bureaucracy and the associated fees can be gradually reduced and many processes automated.
9th place: USD Coin (USDC)
Making it to the ninth place of the largest cryptocurrencies is USD Coin with a market capitalization of $27.5 billion. Similar to other stablecoins, the cryptocurrency USD Coin is also tied to the exchange rate of the US dollar, which keeps the price of the digital currency largely stable and thus less volatile.
Rank 8: Solana (SOL)
Solana has only been in the top ten coins with the highest market capitalization for a short time. The cryptocurrency was founded by Anatoly Yakovenko in 2017 and is currently experiencing a price explosion.
Solana relies on a new timestamp algorithm called Proof-of-History. It allows to string together automated transactions that take place in fractions of a second.
Solana relies on proof-of-stake for this. It also makes staking possible. Proof-of-stake refers to a process by which a blockchain network reaches consensus on which participant may generate the next block. Staking, in turn, means that cryptocurrencies are stored in a proof-of-stake blockchain for a certain period of time. Individual transactions are thus visible to all.
The increasing interest in Solana is also reflected in its market capitalization. This currently stands at around 34.6 billion dollars – putting Solana in eighth place among the largest cryptocurrencies. At the beginning of January, the market capitalization was still at $85.5 million, which means an increase of more than 3900 percent since the beginning of the year. At the time, Solana’s price was $1.84, but it rose to its current all-time high of $116.85 on August 30.
Rank 7: Dogecoin (DOGE)
Dogecoin makes it to the seventh place of the largest cryptocurrencies in 2021 with a market capitalization of around $35.9 billion. This digital currency is based on the well-known “Doge meme”, which is why the logo of the currency also features the image of a dog of the Shiba Inu breed.
Dogecoin was created as a fun counterpart to Bitcoin, in order to offer a cryptocurrency outside of Bitcoin that is relevant to other audiences. Another difference to other cryptocurrencies is that Dogecoin uses the so-called Scrypt technology. Thus, the digital currency also has the property that transactions can be completed faster.
However, the number of Dogecoin is unlimited. Unlike Bitcoin, which is limited to 21 million digital coins, Dogecoin has no limit when mining, which is why the value of a coin also remains low.
Rank 6: XRP – Ripple (XRP)
One place ahead of Dogecoin is the cryptocurrency XRP. Its market capitalization is currently around $52.5 billion. The digital currency XRP was created by the founders of the payment platform Ripple and should be one of the great alternatives to other cryptocurrencies.
Ethereum and Bitcoin were primarily launched to create a money and payment system independent of banks and states. Ripple, on the other hand, works with various banks, including Unicredit and Santander, among others.
Rank 5: Tether (USDT)
In the fifth place of the largest cryptocurrencies by market capitalization, Tether makes it. Just like USD Coin, Tether is a stablecoin that is always pegged to the US dollar exchange rate. Due to the low volatility, crypto investors should get more security when investing in the digital currency.
However, there is always room for criticism, especially with the basic construction. This is because Tether is only issued by a company that itself has an opaque background. In addition, Tether is connected to the exchange Bitfinex, which causes skepticism in the crypto scene, among other things, due to addresses in the Caribbean.
Despite the negative headlines, the market capitalization of the cryptocurrency Tether is currently around 65.5 billion US dollars.
Rank 4: Binance Coin (BNB).
With a market capitalization of currently around 77.9 billion US dollars, the Binance Coin, also known as BNB, makes it to the fourth place in the ranking of the largest cryptocurrencies in 2021. The Binance Coin was created to support the company’s own cryptocurrency platform and thus contribute to the creation of a sustainable ecosystem.
However, there have also been negative headlines surrounding the cryptocurrency recently. For example, the associated crypto platform Binance was accused by British authorities of offering financial transactions without the necessary licenses. As a result, Binance has now come under the scrutiny of several regulatory authorities.
Rank 3: Cardano (ADA)
The third place in the ranking is occupied by the cryptocurrency Cardano. Among others, Ethereum founder Charles Hoskinson, who as CEO of IOHK also co-developed Cardano’s blockchain, was involved in its founding. The market capitalization of the digital currency, which is still being established, is currently around 89.7 billion US dollars. At the beginning of 2021, the market capitalization still amounted to 5.45 billion US dollars; only on August 27 did Cardano’s market capitalization peak at more than 94.64 billion US dollars.
The cryptocurrency aims to explore and solve problems with blockchain currencies. For example, back in 2020, an update was made that was supposed to make the blockchain “50 to 100 times more decentralized” than it already was.
Rank 2: Ethereum (ETH)
Second place among the largest cryptocurrencies is occupied by Ethereum, with a large gap between it and third place. At around $386.1 billion, Ethereum’s market capitalization is currently four times larger than Cardano.
Basically, Ethereum is a decentralized blockchain system that has its own cryptocurrency, Ether. The goal of the crypto platform is to become a decentralized application for users from all over the world. On the blockchain platform, it is therefore also possible not only to trade with the cryptocurrency Ether, but also to conclude so-called smart contracts. These automatically execute programmed agreements or contracts. This should make transactions cheaper and more reliable in the future.
1st place: Bitcoin (BTC)
In first place among the largest cryptocurrencies by market capitalization in 2021 is Bitcoin. The market capitalization of the oldest cryptocurrency is currently $890.7 billion. Bitcoin reached its previous record high in mid-April, when one Bitcoin was worth $64,895. At that time, the market capitalization of bitcoin was more than $1,000.18 billion.
If you calculate the sum of the market capitalization of Bitcoin and Ethereum together, first and second place in the current ranking account for more than 80 percent of the market capitalization of the other cryptocurrencies.
Source: coinmarketcap.com, as of Aug. 31, 2021; 9:47 a.m.