5 Most Influential Cryptocurrencies

At the end of 2021, the total capitalization of the cryptocurrency market exceeded $3 trillion. Digital money has long been a full-fledged participant in the global financial ecosystem. Today, there are more than 8,000 different cryptocurrencies.

In this article, we will tell you what cryptocurrency is, as well as consider some of the most notable digital coins with a capitalization of tens or even hundreds of billions of dollars.

Content:
1. What is cryptocurrency 
2. Bitcoin (BTC)
3. Ethereum (ETH)
4. Binance Coin (BNB)
5. Tether (USDT)
6. Solana (SOL)
7. Conclusion: the present and future of the crypto market

Digital money is not a new idea. The Internet has added a virtual dimension to the familiar world. The global network caters to our requests for information and entertainment, makes it easier to work with various services and provides ample opportunities for communication.

However, with the advent of blockchain technology, the virtual space has received new, larger opportunities. For example, to implement an independent financial system, which can not be directly influenced by the state, corporation, or any person. Blockchain technology and cryptographic currency became the basis for such an ambitious project.

A blockchain is a distributed ledger or a decentralized database. In simple words, copies with all the information are on a large number of computers. This ensures transparent storage and control of data by all network participants. It is impossible or economically unprofitable to change and forge records.

Cryptocurrency is an internal virtual currency on the blockchain platform. A digital coin is a value that can be exchanged within the system. At the moment, crypto money is a full-fledged payment instrument and is actively used as an object for investment. A large number of services (for example, PayPal) provide customers with the option of making payments with crypto money.

Virtual coins have become a prominent participant in the global financial system. Even people who are far from computer technology or trading are interested in studying what cryptocurrency is, how its rate changes and how the digital money market is developing.

Bitcoin is a pioneer in the cryptocurrency market. The decentralized Bitcoin payment system, along with the virtual coin of the same name, was created by Satoshi Nakamoto. This pseudonym hides a person or group of people who implemented the Bitcoin blockchain platform for digital money in 2009.

In January 2009, the first block of the network was formed and the debut Bitcoin cryptocurrency was generated in the amount of 50 units. A few days later, the first transaction was made. And in September of the same year, bitcoin was first exchanged for “money from the outside world” — dollars.

The first purchase of a real product (pizza) for the Bitcoin cryptocurrency was made in May 2010. The deal amounted to 10,000 digital coins. This story has already become legendary and has a special “taste” in the light of the current price for one BTC.

Bitcoins are generated using computer technology by miners who are members of the blockchain network, who create blocks. The maximum number of possible Bitcoins is 21 million. At the beginning of 2022, more than 90% of BTC has already been generated. According to reports of TheMoneyMongers.com: "The market capitalization of the Bitcoin cryptocurrency now exceeds $820 billion, and last year the price for one BTC digital coin exceeded $65,000 several times.

Bitcoin has become a catalyst for the development of digital money. Now many people are interested in cryptocurrency, crypto market news and the bitcoin rate. There are different views on the crypto money phenomenon. Some consider them to be the key to a free financial system, modern “gold”, and a value of the future. There are also a lot of those who treat the cryptocurrency market as a pyramid scheme or a “bubble”. You can think about digital currencies in different ways, but it's hard to deny that the emergence of Bitcoin has become one of the most significant events of recent decades.

Ethereum is a cryptocurrency operating on the platform of the blockchain of the same name. This digital coin takes a confident second place in the ranking of the most influential crypto money. The Ethereum network was launched in 2015. This blockchain is implemented as a decentralized virtual machine. The Ethereum system is a workspace for creating smart contracts and dApps (decentralized applications).

The Ethereum blockchain is a project with various applications and a high level of interest from the world's leading companies and other market participants. This status had a positive impact on the development of the internal digital coin.

Today, the capitalization of the Ethereum token ranges from $400 billion. In November last year, the price of the Ethereum cryptocurrency came close to $4.5 thousand per coin.

The Ethereum network has become the main one for the “NFT movement”. Non-fungible tokens (NFTs) have rapidly gained popularity and may be the reason transformation of the value system we are accustomed to by digitizing it.

In the near future, the Ethereum blockchain plans to switch to the Proof-of-Stake mining system. The “proof of share” method will significantly reduce the power consumption of the network for the formation of blocks. Experts suggest that with the transition to the PoS system, the rate of generation of new Ethereum coins will decrease.

Binance coin cryptocurrency is the third in terms of market capitalization at the moment (about $80 billion). BNB is the brainchild of the largest cryptocurrency exchange, Binance. The digital token, like the exchange itself, was launched in 2017. BNB was created as an internal payment unit of the Binance marketplace for trading and paying commissions. Now this cryptocurrency is one of the main market participants and is actively traded on other exchanges.

The Ethereum blockchain became the basis for launching Binance coin. Later, the exchange implemented the Binance Chain decentralized network project, to which it transferred its cryptocurrency. The Binance coin was trading at 10 cents at the dawn of its existence. And in November 2021, the price for one BNB surpassed the $600 mark.

Tether is a token from Tether Limited, which appeared in 2015. Bitfinex crypto exchange was one of the first to introduce USDT into its system. The Tether token is positioned as a stablecoin, a stablecoin. USDT is the first cryptocurrency to receive this status. A stablecoin is a digital asset that is tied to the fiat exchange rate. In the case of Tether, it is assumed that part of the token's value is provided by real bank accounts in dollars.

The USDT cryptocurrency does not have its own blockchain network. Third-party turnkey solutions are responsible for the implementation of the Tether token. Initially, the basis for the first stablecoin was the Omni Layer protocol, an add-on for interacting with the bitcoin blockchain. In 2018, USDT tokens began to be issued on the basis of the Ethereum network (ERC-20 standard). Later, other blockchains became the platform for the Tether token: Solano, Binance Chain, EOS, etc.

It should be noted that the percentage of providing USDT with fiat money has repeatedly become the object of discussion and mistrust. Nevertheless, the Tether cryptocurrency rate is really stable so far. For several years now, the price of one USDT coin has been fluctuating very close to $1. The total market value of Tether tokens at the beginning of 2022 is more than $78 billion.

SOL is a cryptographic token of the Solana blockchain system. This network is a promising innovative project. The Solana blockchain is designed to support decentralized applications (DApps). Among the advantages of the network are:

Various decentralized online services can be implemented and scaled on the Solana platform. This direction is in great demand, which has a positive effect on the positions of both the Solana blockchain itself and the SOL token.

Solana cryptocurrency was launched in 2020 and cost $74 cents. The SOL digital token showed impressive growth rates in 2021; in November last year, the price for one coin was more than $200. At the beginning of 2022, Solana is confidently included in the list of the most influential cryptocurrencies with a total market capitalization of more than $46 billion.

The emergence of Bitcoin has launched a process that has significantly changed the world's economic system. In a fairly short period of time, cryptocurrency has become a significant participant in financial processes. In different countries, there is no synchronization of the legislative framework for the use of digital money. However, in some countries, Bitcoin is already an official payment unit. Many countries are actively working to create national digital money. Some have already done so.

Currently, Bitcoin continues to be the main driving force in the cryptocurrency market. But competitors are gaining momentum, and the inviolability of the leadership position of the first digital coin no longer seems so obvious.

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