Cryptocurrencies have become essential to the financial world, offering a digital alternative to traditional currencies. Built on blockchain technology, they allow people to make direct transactions without needing intermediaries like banks. Cryptocurrencies are changing how we handle money, whether you’re using them to make purchases or invest in them for long-term gains. As Anthony Pompliano, podcaster, and CEO of Pomp Investments, said, “Cryptocurrency will be the biggest opportunity for wealth creation in our lifetime.”

With over 9,000 cryptocurrencies available as of 2024, it can be challenging to determine which ones are worth following. Two key factors, market capitalization, and circulation, provide valuable insights into their potential.

This article highlights the top five cryptocurrencies that stand out based on these metrics, giving you a clear understanding of which ones to watch closely.

Bitcoin (BTC)

Bitcoin isn’t just the first cryptocurrency, but the foundation upon which the entire crypto market is built. Created in 2009 by the mysterious figure Satoshi Nakamoto, Bitcoin was designed to be a decentralized currency free from the control of governments or financial institutions. 

Bitcoin’s underlying technology, blockchain, keeps transactions secure and transparent. All new entries are validated by proof of work, which ensures that Bitcoin remains resilient to fraud and tampering.

What makes Bitcoin such a  lucrative asset is its dominance in terms of market cap. At over $1 trillion, no other coin comes close to matching its financial footprint. Its limited circulation—capped at 21 million coins—only adds to its allure. As demand grows, scarcity plays a significant role in its value proposition. This has made Bitcoin a popular value store, often called “digital gold.”

The price growth of Bitcoin is staggering. Back in 2016, one Bitcoin could be bought for about $500. Fast forward to 2024, and the price has surged to over $67,000. Such phenomenal growth, over 13,000%, has made it one of the best-performing assets of the last decade. 

Bitcoin’s wide adoption by financial institutions and retail investors suggests that its position at the top is unlikely to wane anytime soon. For those looking to invest in Bitcoin without immediate funds, exploring options like loans online can be a helpful way to get started and take advantage of opportunities in the cryptocurrency market.

Ethereum (ETH)

Ethereum revolutionized the cryptocurrency world by being much more than just digital money. It introduced a platform developers could use to build decentralized applications (DApps), with smart contracts being one of its standout features. These contracts automatically execute when pre-defined conditions are met, making Ethereum a critical player in decentralized finance (DeFi) and non-fungible tokens (NFTs).

Ethereum boasts a market cap of over $300 billion, cementing it as the second-largest cryptocurrency. Unlike Bitcoin, Ethereum has no hard cap on its supply, though its circulation remains high due to the continuous demand for its network’s services. This adaptability has allowed Ethereum to maintain a leading role in blockchain innovation, attracting developers and businesses looking to build decentralized systems.

Since its early days, Ethereum’s growth has been extraordinary. Its price leaped from a mere $11 in 2016 to over $2,600 by 2024, marking an increase of nearly 24,000%. This rapid growth reflects Ethereum’s broad utility and future potential, especially with Ethereum 2.0 on the horizon, a significant upgrade to make the network more scalable and environmentally friendly.

Tether (USDT)

Tether stands out in the cryptocurrency space for one crucial reason: stability. While most cryptocurrencies are notoriously volatile, Tether is pegged to fiat currencies, such as the U.S. dollar or the euro. This makes Tether a “stablecoin,” designed to maintain a one-to-one value with the underlying currency, providing a safe harbor for investors looking to avoid wild price swings.

Tether’s market cap currently sits at over $100 billion, underscoring its role as a liquidity provider for the entire crypto market. It’s widely used in exchanges to move in and out of trades without needing to convert to traditional currency, helping maintain smooth trading activities. Its consistent value also makes it a popular choice for those looking to hold cryptocurrency without the risk of significant losses due to price fluctuations.

Though Tether doesn’t offer the same price growth potential as other cryptocurrencies, its real strength lies in providing stability in a market known for its unpredictability. For investors seeking a reliable asset in a sea of volatility, Tether serves as an essential tool.

Binance Coin (BNB)

Launched in 2017, Binance Coin initially functioned as a utility token for one of the largest cryptocurrency exchanges in the world, Binance. Users would receive discounts on trading fees when using BNB on the platform. 

However, its uses have significantly expanded since then. Binance Coin can now be used for payment processing, travel bookings, and even for trading or exchanging other cryptocurrencies, making it a versatile asset.

Binance Coin’s over $85 billion market cap speaks to its explosive growth. It has seen a remarkable price surge since its inception. Back in 2017, BNB could be purchased for a mere $0.10. Today, its price hovers around $594, showcasing an astronomical increase of over 593,000%. Such massive growth is a testament to Binance’s expansion and BNB’s utility within the crypto ecosystem.

The rapid adoption of BNB can be attributed to Binance’s status as a global exchange leader, with millions of users worldwide. Its wide range of applications and strong backing from the Binance platform ensure that BNB remains a crucial player in the crypto market.

Solana (SOL)

Solana is a newer entrant into cryptocurrency, but it has quickly become one of the most promising projects. Launched in 2020, Solana was developed to solve two of the biggest challenges in blockchain technology: scalability and speed. Through a unique combination of proof-of-stake and proof-of-history mechanisms, Solana can process transactions incredibly fast, far outpacing many of its competitors.

Solana’s market cap has surged to over $70 billion, solidifying its place as a top cryptocurrency. It’s particularly favored in decentralized finance, where its speed and low fees provide a more efficient alternative to Ethereum. Its native token, SOL, powers this ecosystem, making it a key component of Solana’s value proposition.

SOL’s price growth has been phenomenal. Starting at just $0.77 in 2020, the price had skyrocketed to around $166 by 2024, a gain of over 21,000%. Solana’s role within the blockchain ecosystem will only increase as decentralized finance and apps grow.

Conclusion

Market cap and circulation remain critical factors when assessing a cryptocurrency’s potential. These five cryptocurrencies—Bitcoin, Ethereum, Tether, Binance Coin, and Solana—demonstrate strong fundamentals in both areas, making them worth watching. Each offers something unique, from Bitcoin’s unrivaled dominance and Ethereum’s innovative contract capabilities to Tether’s stability, Binance Coin’s versatility, and Solana’s speed.

Investors should continue to follow these assets as they evolve. Though the crypto market can be volatile, researching and staying informed can help you navigate this exciting space confidently.