Ever since the concept of decentralized currencies first entered mainstream consciousness, Bitcoin has dominated the landscape. Being the first blockchain-based system of financial currency, having launched in 2009, BTC is often lauded as a trendsetter and widely regarded as the most popular crypto coin across the globe. Certainly, the record-breaking returns it has been able to generate support its status as the top-performing coin, but while it is synonymous with cryptocurrency, it’s not the only option available.
BTC may have impressive utility, but the decentralized ecosystem has undergone massive expansion over the past decade, resulting in some 21,000 different cryptocurrency coins being launched — a number of which possess unique features that actually make them more versatile than Satoshi Nakamoto’s original crypto. These alternative coins and stablecoins are, in many cases, as widely accepted as Bitcoin as a payment method across the globe.
Altcoins being used for entertainment purposes highlight the versatility of cryptocurrencies. From gaming platforms integrating digital currencies for in-game purchases to NFT marketplaces revolutionizing the art industry, these alternative coins offer diverse utility beyond traditional payment methods. Whether that’s being used to play online slots for real money in Canada or to purchase a one-of-a-kind artwork in London, altcoins continue to redefine the boundaries of digital transactions.
Everything You Need to Know about Altcoins
‘Altcoins’ is the umbrella term used to describe any cryptocurrency that’s not BTC. Altcoins first emerged in 2011 — of course, there are now tens of thousands of them — with developers launching alternative coins in a bid to address some of the limitations of Bitcoin. Being decentralized currencies built on distributed ledger technologies, most altcoins naturally share similarities with BTC, but they also possess unique features and functionalities to bring different value propositions to the crypto ecosystem.
Some altcoins, such as the ones mentioned below, actually outperform bitcoin on certain parameters, such as faster transaction speeds and lower processing costs. They’re also playing a crucial role in powering new sectors including Decentralized Finance (DeFI), GameFi, and the Metaverse.
Altcoins typically fall under one of the following categories:
- Payment tokens that facilitate a value exchange between two parties.
- Security tokens that act as tokenized asset classes, such as real estate or stock tokens.
- Utility tokens can be used to provide services across a specific blockchain network, such as paying for virtual transactions.
- Meme coins that are inspired by internet culture and usually act as collectors’ items.
Market Leading Altcoins
Ethereum (ETH)
The second most ubiquitous crypto platform in the world, Ethereum is a renowned bitcoin alternative with a blockchain network that’s at the heart of numerous smart contracts and dApps and powers several sidechains like the burgeoning Polygon (MATIC) network.
Although its token Ether was initially launched to enable on-chain processes, it’s since grown into a coin with a market cap (at the time of writing) of $371.73B USD.
Binance Coin (BNB)
Another utility crypto, Binance Coin (BNB) was designed as a payment method to facilitate trading on the Binance Exchange since it shares the same blockchain. Founded by Changepen Zhao, Binance Coin initially operated on the Ethereum network, but eventually carved out its own main net. BNB currently has a market cap of $58.08B USD, making it the third-most-popular crypto coin in the world.
Solana (SOL)
Solana is a relative newcomer to the crypto space, with both the coin and the blockchain platform launching in 2020. Like Ethereum, the platform was designed to host
Scalable, decentralized applications (dApps). The blockchain itself runs on a proof-of-stake (PoS) mechanism, which has contributed to the rising value and popularity of SOL — the coin currently has a $45.46B USD market cap
Everything You Need to Know About Stablecoins
Stablecoins are a distinct group of alternative cryptocurrencies that, as the name suggests, deliver a more stable option to the volatility of other cryptocurrencies. It’s well known that crypto prices are subject to extreme fluctuations at any given moment, which can make them challenging for day-to-day use. The value of a stablecoin, however, is tied to more robust assets such as fiat currencies, ensuring that it maintains its price over time.
Compared to other crypto types, stablecoins can be more suitable for common transactions such as paying for goods and services. They effectively offer a “bridge” between conventional currencies like the US dollar and the decentralized landscape, improving the on-ramp and off-ramp processes for individuals. For example, a coin that’s pegged to a fiat currency is a lot easier to convert between the two mediums, often happening instantly with very low transaction fees.
Although the market is undergoing continuous evolution, there are, at present, three widely recognized stablecoin categories :
- Fiat-collateralized coins maintain a reserve as collateral to ensure their long-term value, such as coins that are pegged to commodities, fiat currencies, and precious metals.
- Crypto-collateralized coins are stablecoins that are backed by another altcoin.
- Algorithmic stablecoins often don’t hold reserve assets as their robustness is maintained by an algorithm-controlled supply.
Stablecoins to Watch
Tether (USDT)
The leading stablecoin, with a market cap at present of $97.92B USD, Tether was among the first alternative cryptocurrencies to peg its market value to a fiat currency. Tether’s value is tied to the U.S. dollar, which allows for seamless conversions from other crypto coins to the USD.
USD Coin (USDC-USD)
As the name suggests USD Coin is also pegged to the U.S. Dollar. Although it’s a relatively new entrant to the stablecoin market, it has a market cap of $28.177B USD.
