Cryptocurrency

10 Alternatives to Bitcoin | Top Cryptos other than Bitcoin (by Market Cap)

Top 10 Crypto Projects to Look at Other Than Bitcoin

INTRODUCTION

Over the past week and a half, the crypto market has been on a roll. Almost, since 10 July, the market has been improving both in terms of sentiments and in values of cryptos. Bitcoin has been leading the pack, not in terms of percentage gains but rather in terms of actual quantum. Thanks to its near 42% dominance in the market, its movements are largely picked up by the global crypto market cap charts. Hence, as a result both those charts look quite the same.

However, there is a whole world of cryptos that have given more than double, or even triple digit returns in the same time frame. So let us take a look at some of the other top cryptos you should definitely look at before you invest all your money in the biggest crypto by market cap. These can potentially give you better, market beating returns.

Also Read: Top 10 Crypto to Watch Out

KEY TAKEAWAYS

  • Crypto market cap has hiked 23% while Bitcoin has rallied only 17% in the same time frame (13-19 July)
  • This indicates there are other cryptos giving better returns than the flagship king coin, Bitcoin
  • Tokens like LDO, ETC & MATIC have rallied 150%, 77% and 60% respectively

Read more: How to Diversify your Crypto Portfolio

10 Important Cryptos other than Bitcoin (By Market Cap)

Token Name Current Price 7 DAY % CHANGE ATH Market Cap
ETHEREUM (ETH) $1530 44% $4891 $186 BILLION
BINANCE COIN (BNB) $260 17.2% $669 $42 BILLION
CARDANO (ADA) $0.48 12.5% $3.1 $16.3 BILLION
SOLANA (SOL) $45 33.4% $260 $15.4 BILLION
POLYGON (MATIC) $0.9 60% $2.9 $7.2 BILLION
AVALANCHE (AVAX) $24 34% $146 $6.7 BILLION
UNISWAP (UNI) $7.5 35.2% $43 $5.5 BILLION
LITECOIN (LTC) $57 18.2% $388 $4 BILLION
CHAINLINK (LINK) $7 13.26% $52 $3.2 BILLION
DECENTRALAND (MANA) $0.94 17% $5.9 $1.7 BILLION

Prices as of 19th July, 2022

1. ETHEREUM (ETH)

Top Bitcoin Alternative by Market Cap

Well, practically everybody knows about this coin. Anybody who is even faintly aware of what crypto is in today’s day and age, knows Ethereum. However, what many wouldn’t know is the what’s and how’s behind the second largest crypto by market cap.

According to definitions, Ethereum is a decentralized blockchain platform that works on a peer-to-peer network that securely executes and verifies application code, called smart contracts. In fact, Ethereum was the first smart contract platform in the crypto world, and is heralded as the ‘second generation’ of cryptos.

Smart contracts allow participants to transact with each other without a trusted central authority. Rather the intermediary is basically a piece of code that executes based on a collection of pre-determined rules. Transaction records are immutable, verifiable, and securely distributed across the network, giving participants full ownership and visibility into transaction data – as is with all blockchain networks.

Transactions are sent from and received by user-created Ethereum accounts. A sender must sign transactions and spend Ether, Ethereum’s native cryptocurrency, as a cost of processing transactions on the network.

This token was built by Vitalik Buterin and launched in July, 2015. It currently uses the proof-of-work (PoW) consensus mechanism, inspired from the grandfather of cryptos – Bitcoin but is actually in the process of transitioning to the more environment conscious proof-of-stake (PoS) consensus mechanism. This is being called the ‘Ethereum Merge’ and will usher in the next phase of Ethereum that fully runs on PoS and expected to be fully completed between August and September of 2022.

With an all-time-high of around $4900, the recent bear run in the market has caused it to lose over 80% of its value to fall to nearly $1000. However, it has recovered in the past week and a half and is currently trading near $1500.

Also read: Ethereum Merge Update

2. BINANCE COIN (BNB)

One of the Most Popular Alternative to Bitcoin

Binance coin is a crypto issued by the Binance exchange and trades with the BNB symbol, cerated by Changing Zhao, more commonly known as CZ. Initially based on the Ethereum network, it has now shifted to its own blockchain known as Binance Smart Chain.

It was created with the objective of being an utility token for discounted trading feed in 2017, but over time its use-cases have expanded greatly incline payments for transaction fees on BSC and also real world payments for travel, entertainment, online services and the likes.

One of the most unique features of BNB is that every quarter, it uses a fifth of its profits to repurchase and permanently destroy BNB tokens, also knows as the burning protocol. These coins are burnt from its own treasury to reduce the tokens from circulation and in effect increase its demand and value.

BSC works on a different kind of consensus mechanism, known as the Proof-of-staked authority (PoSA), which incorporates elements from both PoS and PoA. BNB is used for delegated staking on the authority validator that gives out staking rewards for users and validators.

Like most other cryptos in the market, BNB coin has also suffered a huge value erosion in the bear run that began in 2022. From its all-time-highs, this token has lost over 72% of its market cap and is now trading at around $260 after a week and a half of some bullish momentum creeping into the market.

Also read:  Top Cryptos to Invest under $1

3. CARDANO (ADA)

Important Alternative to Bitcoin under $1

Cardano is a publicly accessible, open-source and decentralised blockchain platform with a proof-of-stake consensus mechanism under the hood. It can facilitate peer-to-peer transactions with its internal crypto token – ADA.

Cardano was founded in 2015 by Ethereum co-founder Charles Hoskinson. The development of the project is overseen and supervised by the Cardano Foundation based in Zug, Switzerland. It is the largest crypto to use a proof-of-stake blockchain, which is seen as a greener alternative to energy heavy proof-of-work protocols. 

Cardano is a very unique coin, referred to as the third generation of cryptos after Bitcoin and Ethereum – and it doesn’t have a whitepaper. Instead, it uses design principles intended to overcome issues faced by other cryptos such as scalability, interoperability, and regulatory compliance. Cardano claims that it overcomes problems in the crypto market: mainly that Bitcoin is too slow and inflexible, and that Ethereum is not safe or scalable.

Cardano has been one of the worst hit major cryptos in the list. It began its own downward journey way before the rest of the market fell prey to the bear run that we are seeing right now. Down 87% from its all time highs, it is currently trading at about $0.5, still immune to the bullishness the rest of the market has shown over the past week and a half.

4. SOLANA (SOL) –

High Transaction Speed Blockchain Platform 

Solana, back in the time when it was launched in March 2020 – was all the rage. It was one of the few blockchain platforms in the market that was able to deliver extremely high transaction speeds with no loss of decentralisation at its core. It is able to do so thanks to a bundle of new technologies including a consensus mechanism known as proof-of-history. Solana can process around 50,000 transactions per second, compared to 15 or less for Ethereum as of now.

Thanks to its speed, it is also able to ensure that network congestion and transaction fees remains low. Developers hope high speeds and low fees will eventually enable Solana to scale to compete with centralized payment processors like Visa.

Like Ethereum, Solana is a blockchain platform that can work and interact with smart contracts. These smart contracts, or also known as programmable money – powers a wide range of applications, from NFT markets and DeFi to games and decentralised lotteries.

Quite similar to Cardano, Solana has been another crypto token that has taken a beating in the market even before the bear run began. From its all time highs, it has fallen over 90%. From its all time highs of $260, it fell to below $25 before recovering to around $45 in the past week.

5. POLYGON (MATIC) –

Important Alternative to Bitcoin under $1

Polygon, which was earlier known as the MATIC Network – is an Ethereum token that powers the Polygon network – a scaling solution for Ethereum. Polygon was started with the aim of providing faster and cheaper transactions on the Ethereum blockchain network using layer 2 sidechains – which are basically blockchains that run alongside the Ethereum main chain.

Users can deposit Ethereum tokens to a Polygon smart contract, interact with them within Polygon, and then later withdraw them back to the Ethereum main chain. The MATIC token is used to pay transaction fees and participate in proof-of-stake consensus.

Founded by Sandeep Nailwal back in 2017, Polygon is one of the most popular L2 solutions on Ethereum and has gained global recognition. It even became the only blockchain company to be selected for the Disney Accelerator Program 2022. It is also becoming the home to some of the biggest the NFT collections and projects on the flailing Terra network along with its own.

MATIC too has recorded a rather large fall from its all time highs amid the 2022 bear run. It has lost over 89% since then but since mid-June, thanks to a bunch of positive announcements has managed to recover over 176% from its lows, quite literally leading the rally.

Additional Read: Ethereum vs Solana vs Polygon

6. AVALANCHE (AVAX)

One of the Top Alternative to Bitcoin under $100

Avalanche is a blockchain network that describes itself as an open, programmable smart contracts platform for decentralised applications. AVAX is used to pay transaction fees and can be staked to secure the network. Avalanche is compatible with Solidity, Ethereum’s programming language, and can be used to deploy custom private or public blockchains as “subnets.”

Founded by Emin Gun Sirer in September 2020, this became wildly popular amongst Ethereum sidechains, and it works on a network that consists of three components – the the Platform Chain (P-Chain) which coordinates validators and the creation of subnets, the C-Chain for the creation of smart contracts, and the X-Chain for managing and exchanging assets.

Quite like Solana, Avalanche has also lost over 90% since the beginning of the current bear market from its all-time-highs, down from $150 to $13. However, in line with the broader market, AVAX has managed to secure some gains and is currently trading around $25.

7. UNISWAP (UNI)

Top DAO Project to Swap ERC-20 Tokens without any Intermediary

Very different from the rest of the tokens in this list, Uniswap is a crypto exchange which uses a decentralised network protocol. Uniswap is the name of the company that initially built the network. The protocol is responsible for automated transactions between crypto exchanges on the Ethereum blockchain through the use of smart contracts.

At one point in time towards the end of 2020, Uniswap was the largest decentralised crypto exchange and the fourth largest crypto exchange overall in terms of trading volumes.

Created by Hayden Adams and launched in November 2018, Uniswap quickly became extremely popular among those wanting to trade through a decentralised crypto exchange to avoid government hassles. But despite its popularity and use, Uniswap has been the hardest hit crypto in this entire list, having fallen over 93% from its all-time highs. Also, this token touched its ATH back in June 2021, and since then has been on a downward trajectory, much against the rest of the market which created new ATHs between October and November 2021.

Also Read: UniSwap Whitepaper Summary

8. LITECOIN (LTC)

Popularly referred to as the silver to Bitcoin’s gold

Litecoin was created by Charlie Lee and was launched just 2 years after the launch of Bitcoin, in 2011. It was created through a hard fork from the Bitcoin blockchain network in 2011. It was initially designed to address developer’s concerns that Bitcoin was becoming too centrally controlled and hence it prevented other large-scale mining firms to gain the upper hand in the mining process.

While eventually unsuccessful in preventing enterprise miners from taking over the lion’s share of Litecoin mining, the crypto has reworked itself into a minable coin and a peer-to-peer payment system. So it largely shares characteristics of Bitcoin but works on an entirely different algorithm. It was built with the goal of becoming a medium for daily transactions.

Down 89% from its ATHs, Litecoin has followed a similar chart trajectory to that of Uniswap’s. It created its last ATH back in May 2021 and since then hasn’t been able to reach those heights again.

Additional Read: Top DeFi Tokens 

9. CHAINLINK (LINK)

This is another one of the cryptos in this list that was built with a completely different use-case in mind. Chainlink is essentially a crypto that aims to incentivise a global network of computers to provide reliable, real-world data to smart contracts running on top of blockchains.

So basically, smart contracts on blockchains tend to need information from outside the network and that’s where these oracle networks come in, to basically become a conduit of information into the smart contract in a decentralised manner. For example, smart contracts seeking to replicate bonds or insurance agreements may need access to APIs reporting on market prices or Internet of Things data.

Hence, Chainlink was created to solve this problem by incentivising data providers – also known as oracles – to act as a bridge between the blockchain smart contracts and external data sources.

Following the footsteps of outlier coins like Litecoin and Uniswap, Chainlink has also fallen over 89% from its ATHs, which was created back in May 2021. However, in terms of utility, these oracles are needed by all smart contract blockchain network and thus despite poor price action, LINK basically has a monopoly over the business.

10. DECENTRALAND (MANA)

One of the Top Alternative to Bitcoin under $10

Decentraland is one of the most popular metaverse tokens in the crypto space. It is a 3D, virtual world, browser-based platform. Users can choose to buy virtual plots of land on the platform as NFTs using the blockchain network’s native crypto – MANA. This blockchain is based on the Ethereum blockchain and was launched to the public in February 2020 and is overseen by the non-profit organisation ‘Decentraland Foundation’.

This game was built by Ari Meilich and Esteban Ordano and has been in development since 2015. In Decentraland, the space that a user interacts with is known as LAND. According to the project’s whitepaper, this LAND is a finite and transferable 3D virtual space (an ERC-721 token) that is a non-fungible digital asset (NFT) that users can purchase and is permanently owned by them.  The total number of plots is capped at 90,601 and can be bought using MANA tokens.

It touched its all-time-high in late November 2021, soon after social media company Facebook announced that it was rebranding its parent company to Meta. But since then, MANA has been on a downward slide and has shed over 88% of its value from the ATH.

CONCLUSION

In conclusion, this is a list of tokens an investor should consider before buying into cryptos, or just buying Bitcoin based on its market cap. A diversified portfolio, that balances out different cryptos over its various utilities will provide for a margin of safety going forward. Thus relying on a single coin can result in poorer returns and also risk downside without any hedge. You can also consider investing via the Crypto SIP feature CoinDCX provides, to ensure a systematic investment into a portfolio of cryptos for proper wealth creation.


Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. In case you have any queries, write to [email protected].

The above information represent the independent views of Primestack Pte. Ltd, Neblio Technologies Pvt. Ltd, and/or their affiliate entities and are for informational & educational purposes only. The content, information or data provided above is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or shares, virtual digital assets/ crypto products or securities, or to participate in any investment or trading strategy. Any statement or communication made above shall not be treated as a legal, financial, investment or tax advice by the reader. The calculations, data, risk-return formulations, performance or market capitalization indicators captured above are based on the independent data sourcing including collation of public information and/or analysis performed by analysts, advisors or employees of Primestack Pte. Ltd/ Neblio Technologies Pvt. Ltd and/or their affiliate companies and/or any third party. Past performance is not indicative of any future results. The reader(s) are hereby advised to consult their financial/ legal/ tax advisor(s) before making any investment.


 

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