From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, potentially making it overwhelming when investors are first considering getting started in the world of crypto.
These are our pick of the top 10 cryptocurrencies based on their market capitalisation – the total value of all the coins currently in circulation.
What are cryptocurrencies?
A cryptocurrency is a high-risk digital asset that can circulate without the centralised authority of a bank or government.
To date, there are over 26,000 cryptocurrency projects out there that represent the entire £917 billion crypto market.
1. Bitcoin (BTC)
- Market cap: £443 billion
Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is intended to be kept secure and safe from fraudsters.
Bitcoin’s price has both skyrocketed and plummeted over its lifetime. In May 2016, the price of a single Bitcoin was worth about £370. As of 4 October 2023, the figure is around £22,793.
2. Ethereum (ETH)
- Market cap: £163 billion
Both a cryptocurrency and a blockchain platform, Ethereum is a favourite of some programme developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).
Ethereum’s price has also experienced tremendous highs and lows. From April 2016 to the 4 October 2023, its price went from about £8 to around £1,360.
3. Tether (USDT)
Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s pegged to fiat currencies like US dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s preferred by some investors who are wary of the extreme volatility of other coins.
4. Binance Coin (BNB)
Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.
In 2017 it was priced under 10p. By 28 September 2023, its price had risen to around £175. As with other cryptocurrencies, the ride along the way has been highly volatile
5. XRP (XRP)
Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.
At the beginning of 2017, the price of XRP was £0.004. As of 4 October 2023, its price reached £0.43.
6. US Dollar Coin (USDC)
Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s theoretically pegged to the currency of the US dollar and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and can be used to complete global transactions.
7. Solana (SOL)
Developed to help power decentralised finance (DeFi) uses, decentralised apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms aimed to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.
When it launched in 2020, SOL’s price started at £0.57. By October 2023, its price was around £19.30.
8. Cardano (ADA)
- Market cap: £7.4 billion
Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method is designed to expedite transaction time and decrease energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralised applications, which ADA, its native coin, powers.
In 2017, Cardano’s ADA token’s price was about £0.015. As of 4 October 2023, its price was at £0.21.
9. Dogecoin (DOGE)
Market cap: £7.1 billion
Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.
Dogecoin’s price in 2017 was £0.00016. By October 2023, its price was at £0.05.
10. TRON (TRX)
- Market cap: £6.5 billion
Much like Solana, TRON is a blockchain designed to run smart contracts and other DeFi applications. TRX is the platform’s native cryptocurrency, which powers its proof-of-stake consensus algorithm.
TRON was founded in 2017, and TRX was initially valued at 0.015p per token. TRX is currently valued around £0.07.
*Market caps and pricing sourced from coinbase.com, current as of 4 October, 2023.
Crypto FAQs
What are cryptocurrencies?
Cryptocurrency is a form of currency that exists solely in digital form, and is a high risk investment. Cryptocurrency can be used to pay for some purchases online without going through an intermediary, such as a bank, or it can be held as an investment.
