6 Cryptocurrencies That will Rule the Finance Sector
Experts believe that cryptocurrencies will become a major part of the financial industry within 15 years. However, the evolution of cryptocurrencies could not curb its extremely volatile nature even now. Last year, the crypto market witnessed a series of huge breakdowns, losses, and frauds. 2022 was a year that led the crypto market to suffer a loss of 63% in its value. But, cryptocurrency can come back strongly, which is evident from the rise of 34.5% in just the first two months of 2023. If you cannot handle such fluctuations, you have to stay away from cryptocurrencies. However, there are many crypto coins ideal for such people. Every cryptocurrency is different from others. Here are some of the best cryptocurrencies with great potential.
As mentioned earlier, cryptocurrencies are extremely volatile assets. As 2022 experienced a total collapse in the crypto market, investors are looking for established crypto coins that offer more safety. Bitcoin is the first choice when considering established cryptocurrencies. It is the first cryptocurrency ever launched in the market and according to market capitalization, it is the largest with a value of approx, $450 billion and contributes to a total of 42% of the whole crypto market. BTC is the major factor that helps in the acceptance of other cryptocurrencies. Many publicly traded tools track the performance of BTC and there are popular stocks in the market that keep it on their balance sheets.
Ether is the second in terms of market capitalization. It is the native token of the popular Ethereum blockchain network. Ether is often referred to as Ethereum. The market capital of Ethereum comes to around $200 billion and holds a share of 19% in the whole crypto market. The difference between Ethereum and Bitcoin is that ETH is more than a peer-to-peer payment tool. It is made specifically for decentralized finance instruments and smart contracts. It is also a supportive platform for NFT trading and Web 3.0 applications. The transition of Ether from a proof-of-work protocol to a proof-of-stake system gives ETH a chance to gain the upper hand over BTC in the coming years.
One thing crypto investors must keep in mind is that apart from BTC and ETH, all the other cryptocurrencies have their risks. AVAX is the native token of Avalanche and the reason it is regarded worthy are the goals Avalanche blockchain puts forward. The subnets feature of Avalanche helps users to utilize their mini-blockchains in addition to its network.
MATIC is the crypto token of Polygon and in terms of market capitalization, it is the seventh largest cryptocurrency. The capitalization of MATIC is over $10 billion. However, the market contribution of this cryptocurrency is just 1% of the total market size.
Cardano is supported by a proof-of-stake blockchain and is considered to be one of the biggest blockchains that runs the energy-efficient protocol successfully.
ATOM also has the least market cap and is the native token of the efficient Cosmos Hub blockchain. ATOM is also a popular governance token that allows holders to say their opinion on the evolution of the Cosmos ecosystem.