Top 10 cryptocurrencies of 2024

Key points

• Bitcoin was the first cryptocurrency and remains the most valuable.
• Since 2009, the cryptocurrency market has expanded to include countless coins.
• Most cryptocurrencies have small market capitalizations.

The cryptocurrency market is known for its unpredictability and volatility. But it has generated incredible gains for long-term investors. That’s probably why crypto bulls believe the sky’s the limit for crypto prices.

While there are thousands of cryptocurrencies on the market, bitcoin and ethereum still dominate. Their market capitalizations comprise about 71% of the $2.02 trillion global crypto market.

Here are the 10 largest cryptocurrencies by market cap, excluding stablecoins.

1. Bitcoin (BTC)

Price: $55,338.10

Market cap: $1.1 trillion

Year-over-year return: 79%

Since its inception in 2009, bitcoin has become the most popular and valuable cryptocurrency. It was created by an individual, or perhaps a group, operating under the pseudonym Satoshi Nakamoto.

Bitcoin’s blockchain-based, decentralized transaction verification and public ledger system revolutionized the world of digital security. But critics have raised environmental concerns about the energy-intensive, proof-of-work consensus mechanism. They also argue that bitcoin needs help scaling its current form. Plus, other cryptos have faster transaction speeds. These quicker speeds make their blockchains more functional than bitcoin’s. That said, bitcoin still dominates the crypto market, representing 53.91%.

2. Ethereum (ETH)

Price: $2,941.10

Market cap: $353.5 billion

Year-over-year return: 54%

Ethereum was one of the first altcoins. Launched in July 2015, ethereum is the most valuable crypto besides bitcoin. The network’s native cryptocurrency is called ether. Ethereum’s blockchain was the first to introduce smart contracts, code that runs decentralized applications.

The ethereum blockchain is home to more than 4,400 dApps and developer tools. In 2023, ethereum transitioned from a proof-of-work consensus mechanism to a less energy-intensive, proof-of-stake transaction verification system. Ethereum is now a greener investment than bitcoin. But its blockchain functionality is its key differentiator.

3. BNB (BNB)

Price: $483.44

Market cap: $71.3 billion

Year-over-year return: 101%

Binance is one of the world’s largest cryptocurrency exchanges. BNB is its native crypto. BNB was initially created as a utility token built on the ethereum network. Its original purpose was to give users access to discounted trading fees on the Binance exchange.

The token has since transitioned to Binance’s blockchain and has evolved to serve several purposes. BNB can now be used for various applications, transactions and other purposes. Unfortunately, like other cryptos, Binance has run afoul of the U.S. Securities and Exchange Commission. The SEC sued the company in 2023 on charges of violating securities laws.

4. Solana (SOL)

Price: $129.78

Market cap: $60.1 billion

Year-over-year return: 556%

Solana is a relatively new crypto, having launched in March 2020. Designed to compete with the ethereum network, solana’s blockchain supports smart contracts, dApps and nonfungible tokens. But solana’s hybrid proof-of-stake and proof-of-history verification system makes it cheaper and faster than ethereum.

Unfortunately, the solana network has struggled with outages that have undermined its credibility. It has suffered several major outages since the beginning of 2022. It was also down for around 19 hours in February 2023. Solana must improve its stability to be seen as an “ethereum killer.”

5. XRP (XRP)

Price: $0.42

Market cap: $23.2 billion

Year-over-year return: -12%

Created by Ripple Labs, this global payments network is designed to be an alternative to the Society for Worldwide Interbank Financial Telecommunications. SWIFT is the global system banks and other financial institutions use to transfer money.

Ripple Labs claims its technology is faster, cheaper and more transparent than SWIFT. XRP is the native cryptocurrency designed for the Ripple network and XRP Ledger blockchain. In 2023, a judge ruled that the crypto is “not necessarily a security” in certain circumstances. But the SEC seeks to levy a nearly $2 billion penalty against Ripple for allegedly selling XRP to institutional investors.

6. Toncoin (TON)

Price: $6.99

Market cap: $17.4 billion

Year-over-year return: 404%

In 2018, the developers of the encrypted messaging company Telegram developed the “layer 1” blockchain. The network behind TON is known for its smart contract capability and speed advantage over ethereum.

The blockchain speed for TON is a quick five seconds. But for the cryptocurrency to be competitive among crypto projects, it must attract more developers. Toncoin has generated impressive bullish momentum following recent reports that Telegram is considering an initial public offering.

7. Dogecoin (DOGE)

Price: $0.10

Market cap: $14.5 billion

Year-over-year return: 49%

Dogecoin was created in 2013 as a parody of bitcoin. But dogecoin enthusiasts argue that the popular meme coin is a legitimate investment. The crypto has the backing of several high-profile supporters.

Tesla CEO Elon Musk is among the cryptocurrency’s most visible investors. By simply mentioning the crypto, he has triggered extreme volatility in dogecoin prices. Musk faces a lawsuit by dogecoin investors who allege he illegally manipulated prices. Billionaire entrepreneur Mark Cuban is also a dogecoin supporter.

Another thing to note: DOGE has a valuable online brand and a famous Shiba Inu mascot.

8. Cardano (ADA)

Price: $0.35

Market cap: $12.5 billion

Year-over-year return: 21%

Cardano is a decentralized proof-of-stake blockchain that debuted in September 2017. The crypto is designed to be more energy-efficient than bitcoin and other proof-of-work blockchains. From the start, cardano’s founder, Charles Hoskinson, co-founder of ethereum, boosted its credibility.

Like ethereum, cardano is focused on functionality, appealing to developers building dApps and verifiable smart contracts. ADA is the primary cryptocurrency used on the network to run dApps and facilitate transactions. By staking cardano, users can help verify the network’s transactions. They then earn additional tokens as a reward for participating in the proof-of-stake system.

9. TRON (TRX)

Price: $0.13

Market cap: $11.0 billion

Year-over-year return: 61%

Toncoin is a “layer 1” token developed in 2018 by encrypted messaging company Telegram. The toncoin network is known for its smart contract capability and transaction speed. It has an impressive blockchain speed of just five seconds.

Despite the network’s speed, it must attract more developers to compete with ethereum in the long term. Toncoin has generated impressive bullish momentum following reports that Telegram is considering an initial public offering. A successful Telegram IPO likely wouldn’t impact TON demand. But it would significantly increase Telegram’s visibility.

10. Avalanche (AVAX)

Price: $24.30

Market cap: $9.6 billion

Year-over-year return: 89%

Avalanche is a 2020-launched ethereum network competitor. Its goal is to create the fastest, most secure network that supports smart contracts, dApps and autonomous blockchains.

AVAX is the native token of the avalanche network. Avalanche users can vote on platform governance and pay transaction fees using the token. Coin creation is limited to 720 million tokens. Avalanche users can vote to alter the rate that AVAX is created. This gives them control over the crypto’s inflation rate. AVAX also has a unique consensus mechanism for verifying transactions. The process involves a sufficient majority of validators approving a transaction.

*Market caps and pricing are sourced from CoinMarketCap.com, current as of 8:07 a.m. ET on July 5, 2024.

What is cryptocurrency?

Cryptocurrency is digital money that can be held as an investment or used to purchase goods or services.

Banks or other financial institutions aren’t needed to verify or complete transactions. Cryptocurrency transactions are verified via a consensus mechanism and recorded on a blockchain. These are permanent ledgers that track and record trades and assets.

Cryptocurrencies are essentially self-contained, digital payment platforms. They are typically not issued or controlled by central governments or other authorities. Instead, they’re controlled by a transparent software protocol that leverages the power of peer-to-peer networks of computers. The primary goal of cryptocurrencies is to give individuals complete control over their assets.

What is crypto trading?

Crypto trading is buying and selling cryptocurrencies to generate a profit. There are several types of crypto trading:

• Long-term crypto traders buy and hold cryptocurrency for years or even decades. These investors ignore the booms and busts of crypto market cycles and focus on the potential for prices to increase over time.
• Crypto swing traders attempt to capitalize on medium-term crypto market trends and momentum. They buy and hold crypto for days or weeks.
• Crypto day traders buy and sell crypto within the same day.
• Crypto scalp traders often buy and sell crypto several times a day. They focus on small gains and aim to accumulate a sizable net profit over time.

Pros and cons of crypto trading

The volatility of the cryptocurrency market presents opportunities to generate significant gains in a short time. But extreme volatility also makes the crypto market dangerous for inexperienced traders.

Brian Dixon is CEO of Off the Chain Capital, which invests in digital assets. Dixon said he wouldn’t recommend attempting crypto trading if you’re new to the market.

“I see a lot of people listen to social media influencers (who) market crypto trading, attempting to make it look easy,” he said. “It is far from easy and requires great skill, time and dedication to become more advanced.”

Here are several pros and cons of crypto trading:

Pros

• Top cryptos have performed extremely well over long periods.
• Many cryptos have a capped supply.
• Rising global cryptocurrency adoption and further institutional investment could boost demand.

Cons

• The extreme volatility and unpredictability of the crypto market make trading a high-risk endeavor.
• Crypto prices may suffer from global regulatory crackdowns.
• The value over the long term hinges almost exclusively on demand.

How to buy cryptocurrency

Cryptocurrencies trade on exchanges, similar to stocks. But not all exchanges and brokerages support cryptocurrencies, especially altcoins.

To buy cryptocurrency, first identify a broker or exchange that offers crypto trading. Leading crypto brokers include SoFi and Robinhood. Popular cryptocurrency exchanges include Binance and Coinbase.

Steps to opening a cryptocurrency exchange account

Once you choose a crypto broker or exchange, you must create and verify a trading account. The process may vary depending on the platform. But it typically includes the following steps:

1. Create an account. You may need to choose the appropriate account type and submit personal information.
2. Verify your identity. This process may involve submitting a copy of a bank statement, photo ID or other documents.
3. Read and agree to a user agreement. User agreements typically spell out the terms of service associated with your account. These include any penalties or fees you may need to understand.
4. Link a payment method. Choose a bank account or other account type to link to your crypto trading account. This will allow you to transfer money in and out of the account.

Fund your account. Consider how much money you want to start with in your crypto trading account. Then, initiate a transfer from your linked account.

Frequently asked questions (FAQs)

Why are there so many cryptocurrencies?

It’s relatively cheap and easy to create a new cryptocurrency. So there’s a low barrier to entry. Many crypto projects have also sought to improve upon bitcoin over the years. These projects have unique aspects to their designs.

Are cryptocurrencies a good investment?

Bitcoin, ethereum and most other top cryptos have been good long-term investments. But past performance is no guarantee of future returns. And many altcoins with smaller market caps have generated abysmal performances.

What are the top cryptocurrencies by market cap?

The top cryptocurrencies by market cap are bitcoin and ethereum. They have long been entrenched among cryptocurrencies as No. 1 and No. 2. After that, a collection of cryptocurrencies jostle for position, including BNB, solana, XRP and dogecoin.