Top 10 cryptocurrencies of 2024

Key points

• Bitcoin was the original cryptocurrency that launched in January 2009.
• Countless coins are traded on the crypto market.
• Most cryptocurrencies hold small market capitalizations.

The cryptocurrency market is known for its volatility and unpredictability. But it has also generated incredible gains for long-term investors. Crypto bulls believe the sky’s the limit for crypto prices.

Though thousands of cryptocurrencies are available today, bitcoin and ethereum still dominate the crypto world. Their market capitalizations comprise about 71% of the $2.13 trillion global crypto market.

Here’s a list of the 10 largest cryptocurrencies by market cap, excluding stablecoins.

1. Bitcoin (BTC)

Price: $57,640.27

Market cap: $1.1 trillion

Year-over-year return: 89%

Launched in 2009, bitcoin remains the most popular and valuable cryptocurrency. It was developed by an individual or a group under the pseudonym Satoshi Nakamoto. Its decentralized, blockchain-based system to verify transactions has transformed how people view digital security and currency.

But critics have raised several concerns about bitcoin. Its energy-intensive proof-of-work consensus mechanism may need help scaling the network. Several large-scale crypto projects also now have higher transaction speeds than bitcoin. Meanwhile, other projects have created blockchains with special designs to improve bitcoin’s functionality.

2. Ethereum (ETH)

Price: $3,153.03

Market cap: $379.0 billion

Year-over-year return: 65%

Ethereum was one of the first altcoins. Launched in July 2015, ethereum is the most valuable crypto besides bitcoin. The network’s native cryptocurrency is called ether. Ethereum’s blockchain was the first to introduce smart contracts, code that runs decentralized applications.

The ethereum blockchain is home to more than 4,400 dApps and developer tools. In 2023, ethereum transitioned from a proof-of-work consensus mechanism to a less energy-intensive, proof-of-stake transaction verification system. Ethereum is now a greener investment than bitcoin. But its blockchain functionality is its key differentiator.

3. BNB (BNB)

Price: $524.30

Market cap: $77.4 billion

Year-over-year return: 120%

Binance is one of the world’s largest cryptocurrency exchanges. BNB is its native crypto. BNB was initially created as a utility token built on the ethereum network. Its original purpose was to give users access to discounted trading fees on the Binance exchange.

The token has since transitioned to Binance’s blockchain and has evolved to serve several purposes. BNB can now be used for various applications, transactions and other purposes. Unfortunately, like other cryptos, Binance has run afoul of the U.S. Securities and Exchange Commission. The SEC sued the company in 2023 on charges of violating securities laws.

4. Solana (SOL)

Price: $132.63

Market cap: $61.4 billion

Year-over-year return: 610%

Designed to compete with the ethereum network, solana launched in March 2020. The crypto’s blockchain supports dApps, smart contracts and nonfungible tokens. SOL has a unique hybrid proof-of-stake and proof-of-history verification system. This hybrid system is a selling point because it makes solana cheaper and faster than ethereum.

Unfortunately, reliability has been solana’s downfall. The network has suffered several major outages since the beginning of 2022. At one point in February 2023, it was down for nearly 19 hours. Solana must improve stability and regain user trust to be an “ethereum killer.”

5. XRP (XRP)

Price: $0.45

Market cap: $25.2 billion

Year-over-year return: -5%

Ripple is a global payments network designed for institutional use. Its native cryptocurrency is XRP. The Ripple network offers an alternative to the Society for Worldwide Interbank Financial Telecommunications. SWIFT is the traditional system used by banks and other financial institutions for international money transfers.

Ripple claims its network is superior to SWIFT because it facilitates faster, cheaper and more secure transactions. The crypto scored a partial court win over the SEC in 2023 when a judge ruled that XRP is “not necessarily a security.” But Ripple is still battling the SEC over a nearly $2 billion fine concerning alleged XRP sales to institutional clients.

6. Toncoin (TON)

Price: $7.27

Market cap: $17.9 billion

Year-over-year return: 425%

Toncoin is a “layer 1” token developed in 2018 by encrypted messaging company Telegram. The toncoin network is known for its smart contract capability. It also has an advantage over ethereum with its impressive blockchain transaction speed of five seconds.

Toncoin’s speed makes it extremely useful. But its long-term success hinges on the network attracting more developers and growing its user base. Toncoin’s price and visibility got a boost from reports of Telegram considering an initial public offering. A successful Telegram IPO likely wouldn’t impact TON demand. But it could draw media attention to the crypto.

7. Dogecoin (DOGE)

Price: $0.11

Market cap: $16.1 billion

Year-over-year return: 66%

Created in 2013, DOGE was launched as a parody of bitcoin. But dogecoin investors are dead serious about its prospects today. DOGE has become one of the most popular meme coins with several high-profile supporters.

Tesla CEO and dogecoin investor Elon Musk is the cryptocurrency’s most visible supporter. The controversial Musk referenced the crypto several times, triggering extreme price volatility. Consequently, a group of dogecoin investors has sued Musk, alleging he manipulated prices deliberately. Billionaire entrepreneur Mark Cuban is also a DOGE supporter.

8. Cardano (ADA)

Price: $0.39

Market cap: $13.9 billion

Year-over-year return: 36%

Cardano is a decentralized proof-of-stake blockchain created by ethereum co-founder Charles Hoskinson. The crypto launched in 2017 and was designed to be more efficient than other proof-of-work blockchains at the time.
Like ethereum, the cardano network was designed for functionality. Its blockchain aims to facilitate dApp development and verifiable smart contracts. ADA is the native cryptocurrency of the cardano network, which is used to run dApps. By staking ADA, cardano users can help verify and facilitate transactions. They earn ADA tokens as a reward.

9. TRON (TRX)

Price: $0.13

Market cap: $11.0 billion

Year-over-year return: 64%

Toncoin is a “layer 1” token developed in 2018 by encrypted messaging company Telegram. The Toncoin network is known for its smart contract capability. It also has an advantage over ethereum with its impressive blockchain transaction speed of five seconds.

Toncoin’s speed makes it extremely useful. But its long-term success hinges on the network attracting more developers and growing its user base. Toncoin’s price and visibility got a boost from reports of Telegram considering an initial public offering. A successful Telegram IPO likely wouldn’t impact TON demand. But it could draw media attention to the crypto.

10. Avalanche (AVAX)

Price: $25.85

Market cap: $10.2 billion

Year-over-year return: 104%

The avalanche mainnet went live in September 2020. Avalanche is a competitor to the ethereum network. Its goal is to establish itself as the fastest, most secure blockchain. The avalanche smart contract platform supports dApps and autonomous blockchains. Users can vote on governance issues and pay transaction fees with avalanche’s native AVAX token.

AVAX’s circulation is capped at 720 million tokens. But avalanche users control the token creation rate. This allows them to increase or decrease the inflation rate. Avalanche also has a unique consensus mechanism. A transaction is finalized only when a sufficient majority of validators approve it.

*Market caps and pricing are sourced from CoinMarketCap.com, current as of 8:07 a.m. ET on July 4, 2024.

What is cryptocurrency?

Cryptocurrency is digital money that can be held as an investment or used to purchase goods or services.

Banks or other financial institutions aren’t needed to verify or complete transactions. Cryptocurrency transactions are verified via a consensus mechanism and recorded on a blockchain. These are permanent ledgers that track and record trades and assets.

Cryptocurrencies are essentially self-contained, digital payment platforms. They are typically not issued or controlled by central governments or other authorities. Instead, they’re controlled by a transparent software protocol that leverages the power of peer-to-peer networks of computers. The primary goal of cryptocurrencies is to give individuals complete control over their assets.

What is crypto trading?

Crypto trading involves buying and selling cryptocurrencies to generate profits from the transactions. There are several strategies for crypto trading:

• Long-term traders buy and hold crypto, hoping its popularity and price will trend higher over the years or decades.
• Crypto swing traders attempt to capitalize on market trends and momentum by buying and selling cryptocurrencies over a period of days or weeks.
• Crypto day traders aim to buy and sell within a single-day period.
• Crypto scalp traders attempt to buy and sell cryptos throughout the day to accumulate many minimal gains.

Pros and cons of crypto trading

To be a good crypto trader, you must treat the endeavor as your primary job.

“Because the crypto market is so volatile, the rewards from trading can be immense — but so too are the risks,” said Christian Quiver, CEO of League.Tech.

Crypto trading has risks and challenges you should understand before placing an order.

Here are several pros and cons of crypto trading:

Pros

• Most top cryptos have solid long-term performance.
• Supply restrictions limit dilution.
• Demand for cryptocurrencies could grow significantly as institutional investment increases.

Cons

• The crypto market has a record of extreme volatility and unpredictability.
• Crypto may face growing regulatory scrutiny, including potential government bans.
• Crypto doesn’t represent ownership in tangible goods or revenue-generating companies.

How to buy cryptocurrency

Popular cryptocurrencies trade on online exchanges just like stocks and bonds. But not all exchanges and brokerages support cryptocurrency trading, especially among altcoins.

The first step is choosing a broker or exchange that supports your cryptocurrencies of choice. Popular crypto brokers include Robinhood and SoFi. Leading crypto exchanges include Binance and Coinbase.

Steps to opening a cryptocurrency exchange account

You must create and verify an account once you choose a crypto broker or exchange. The process varies from platform to platform but generally includes the following steps:

1. Choose an account type. Brokerages may offer different account types. Make sure to open an account that serves your goals.
2. Verify your identity. Platforms often require users to submit a government photo ID or other proof of identification.
3. Read and agree to the terms of service. Each platform has a set of rules and fees you must understand and agree to.
4. Link a bank account. You’ll need to link your new account to a bank account or other account type. This will facilitate deposits and withdrawals.

Fund your account. Decide how much money you want to start trading with. Then, transfer it into your new account.

Frequently asked questions (FAQs)

Do cryptocurrency exchange-traded funds (ETFs) exist?

Yes. The ProShares Bitcoin Strategy ETF (BITO), which invests in bitcoin futures, launched in 2021. The first crypto spot ETFs that hold cryptocurrency launched directly in early 2024. Examples include the Grayscale Bitcoin Trust ETF (GBTC) and iShares Bitcoin Trust (IBIT).

What is the safest crypto to invest in?

Every investment has risks. But crypto traders can limit their risk by sticking to popular cryptocurrencies with plenty of liquidity. It’s also a good idea to consider crypto with large market caps and coverage by media and analysts.

Bitcoin is likely the least risky crypto these days, followed by ethereum and the other major cryptocurrencies.

Will crypto boom in the future?

Given so many unknowns, it’s tough to predict how cryptocurrency will perform in the future. Factors include the global regulatory environment, U.S. dollar stability and crypto integration into the existing financial system.

Bitcoin and other leading cryptos have performed extremely well up to this point. Their capped or restricted supplies create significant potential for a boom under the right circumstances.

Why are there so many cryptocurrencies?

Cryptocurrencies are run on blockchain technology and are open source, meaning the code behind them is fully public and visible to all. Creating a cryptocurrency can be as simple as copying and pasting an existing blockchain or changing the name.