In our previous article, we talked about the rapid fluctuations that leading cryptocurrencies underwent in 2022 and sent the crypto market into turmoil. As a result, investors have thrown caution to the wind. They are now monitoring movements in the crypto market with greater scrutiny. Moreover, the US Fed’s rate hikes have renewed the interest in bonds, which is unlikely to bode well for unstable, non-securitised assets like crypto. Nonetheless, investors haven’t yet abandoned the crypto ship, and 2023 could be the do-or-die year for digital currencies. With that in mind, let’s look at the top 10 cryptocurrencies in the world in 2023.
Launched in 2009 as the first crypto, Bitcoin quickly became a household name. It was crucial for beginner knowledge of cryptocurrency on the whole. However, like many other cryptos, Bitcoin, too, witnessed massive ups and downs in 2022, especially when the bear market hit. After seeing an impressive high of around $45,000 in June 2022, its value fell sharply to just $16,680 in mid-November, dropping by more than 50% in six months. As of January 19, 2023, Bitcoin is trading at around $20,800, a marginal increase from November 2022. But even besides that, the upward climb of Bitcoin is a positive signal for potential investors, securing its position as one of the top 10 cryptocurrencies in the world.
Ethereum (ETH) is a fan-favourite of crypto programmers and developers. Its broad applicability and capability to function as a cryptocurrency and a blockchain platform have ensured sustained interest in ETH. The confidence in Ethereum’s stable performance is evident in its pricing over the last five years. From a modest $1,100 in January 2018, ETH peaked at $4,600 in November 2021. In 2022, when most cryptos faced extreme volatility, ETH’s price has been hovering around the $1,500 mark since August. One development that ETH investors are looking forward to in 2023 is the Shanghai upgrade, which will make Ethereum units more liquid, making it possible to use them in all kinds of transactions.
3. Tether (USDT)
Launched in 2014, Tether is a stablecoin, combining the decentralised aspects of a cryptocurrency with the stability of being backed by the US dollar. True to its name, Tether showed remarkable steadfastness in 2022, with its price fluctuating just below the $1 mark. This platform’s market cap currently stands at $66.5 billion. The stability of the USDT has ensured that it is likely to remain resilient in the face of external forces, such as the increasing returns on US Fed bonds. If you are thinking of diversifying your crypto portfolio, Tether is a must-have.
4. Binance Coin (BNB)
Based solely on daily trading volume, BNB leads the charge hands down and is fourth on our list of the top 10 cryptocurrencies in the world. With a market cap of $45.5 billion, Binance Coin is en route to becoming a pioneer in providing infrastructure services to blockchain platforms across the board. Even though BNB’s price fell by nearly 38% in 2022, the platform touched $300 per unit in January 2023. Given its perseverance in the choppy crypto waters, BNB is well-positioned to emerge as a go-to cryptocurrency in 2023.
The founders of Ripple, a payment processing company, designed XRP as a crypto exchange platform. The platform surged from a humble $0.006 in January 2017 to $0.37 in January 2023. At present, XRP’s market capitalisation stands at a little over $19 billion. However, 2023 will not be smooth sailing for the platform. XRP’s fate is currently riding on the expected outcome of the lawsuit between Ripple and the US Securities and Exchange Commission (SEC). An unfavourable verdict will dampen investor confidence in the platform and hinder its performance in 2023, with fallouts spilling over to 2024.
6. Cardano (ADA)
Cardano has been one of the few standouts in the crypto market and is sixth on our list of the top 10 cryptocurrencies in the world. Functioning in a fashion similar to Ethereum, ADA offers high value to its investors. In addition, the platform has been an early adopter of the proof-of-stake validation system designed to remove the tedious transaction verification process. The method also consumes less energy, making it attractive to climate-conscious investors. Finally, its predicted recovery in 2023 from 2022 losses has given ADA the necessary boost in the eyes of potential investors. Currently, Cardano’s market cap is a few clicks over $11 billion.
7. Solana (SOL)
After a rather grim 2022, Solana’s token (SOL) is ready for a resurgence in 2023. Two rapidly developing areas in the tech world—non-fungible tokens (NFTs) and Web3—are anticipated to carry SOL this year. In the NFT space, Solana is making substantial headway, occupying second place to Ethereum in the NFT market. Furthermore, Helium’s blockchain platform will officially migrate to Solana in 2023, enhancing the latter’s capability to mint NFTs. In the Web3 space, Solana is fiercely developing Web3 applications and end-to-end transaction systems. These developments have created enough buzz for SOL among investors, and 2023 is looking bright for the platform. Its current market cap stands at $7.7 billion.
8. Polkadot (DOT)
Integrating the various benefits of decentralised finance (DeFi) with a user-friendly interface, Polkadot’s multi-chain blockchain technology is one of a kind. DOT, the platform’s native token, has experienced sizeable fluctuations since its launch in 2017. However, this crypto has experienced an unwavering upward trajectory since November 2020. As of January 19, 2023, DOT’s price was $5.74, while its market cap stands at $6.59 billion. Suppose you are looking to make long-term investments in crypto. In that case, Polkadot is a serious contender and is eighth on our list of the top 10 cryptocurrencies in the world.
9. Litecoin (LTC)
Litecoin has successfully held its place as one of the most reliable digital assets since its introduction in October 2011. LTC’s most significant pull for investors is the accelerated speed at which it can process transactions. This speed has given Litecoin an edge over its competitors in the payments ecosystem. In terms of price volatility, however, LTC fared no better than other tokens. While its value touched $136.20 in January 2022, it dropped by 38.41% in January 2023. Still, industry experts predict Litecoin’s value will likely double in the first half of 2023. So, we are yet to see if it will retain its spot in the top 10 cryptocurrencies in the world.
10. Avalanche (AVAX)
Avalanche utilises blockchain algorithms to facilitate secure and fast decentralised financial transactions. The start of 2023 has been exciting for AVAX. Its value jumped from $10.87 on January 1, 2023, to $15.90 on January 19, 2023, exhibiting an increase of nearly 55%. The ace up Avalanche’s sleeve is its upcoming collaboration with Amazon. Avalanche will become the official blockchain solutions provider to Amazon Web Services (AWS). This collaboration will undoubtedly skyrocket the platform’s market cap, which currently stands at just a little over $5 billion.
Knowing the top 10 cryptocurrencies in the world, you must still tread with caution.
Platform crashes and doomsday predictions by influential industry leaders further hyped the scepticism surrounding cryptocurrencies in 2022. Investors are, therefore, being extra careful about crypto while keeping interest in these assets alive in the financial market. However, with several crypto platforms showing encouraging signs, 2023 could be the year of the crypto rebound. So make sure to keep track of these top 10 cryptocurrencies in the world, and decide if you want to have diamond hands or paper hands this year.