The market value of all cryptocurrencies has exceeded $2 trillion. As you may guess, half of the market value of all cryptocurrencies belongs to Bitcoin ($1.1 trillion).
The top 7 cryptocurrencies by capitalization also include: Ethereum ($241.3 billion), Binance coin ($58.5 billion), Tether ($43 billion), XRP ($40.8 billion), Polkadot ($40.6 billion), Cardano ($38.3 billion), Uniswap ($16.2 billion), Litecoin ($14.6 billion) and Chainlink ($13.1 billion).
So, how to identify a project worth investing in?
There are a couple of simple indicators that can give an idea of the potential of each cryptocurrency.
Now, it is time to look at the top cryptocurrencies that deserve to be in the portfolio of every crypto investor and trader.
No long-term bull market can have a single leader. There are periodic changes. It is this kind of rotation that is currently taking place in the cryptocurrency markets: ETH and XRP are leading, while BTC is slowing down.
Market cap: $68 million
ETH is the cryptocurrency that Ethereum runs on. It is a decentralized software platform that allows you to create and run smart contracts and decentralized applications (DApps). Ethereum is not just a platform, but a Turing-complete programming language.
The Ethereum 2.0 deposit contract now contains 739,520 ETH ($424 million) with the required 524,288 ETH. This exceeds the threshold required to activate the Ethereum 2.0 update.
Ethereum creator Vitalik Buterin said in his Twitter account that the system for launching ETH 2.0 had crossed the 50% mark. After that, the cost of ETH rose to $600.
The value of BTC locked in Ethereum has exceeded $3 billion. The current Bitcoin bull cycle has contributed to the increase in the number of tokenized BTC in Ethereum. After hitting an all-time high of 175k BTC last week, the number of blocked BTCs has dropped to 170k, according to DeFi Pulse.
If we compare the news agenda and technical analysis, we can come to a common denominator: in the long term, ETH is the most promising cryptocurrency. The only drawback is the high cost of fees within the network, but this problem should be solved in ETH 2.0.
Market cap: $30 billion
XRP is a centralized cryptocurrency created by Ripple Labs as a solution to enable banks and financial institutions to leverage the power of blockchain technology to improve cross-border transaction systems. XRP runs on the RippleNet digital payment platform on top of a distributed ledger database called XRP Ledger.
XRP price jumped by 91% over the past month as the digital asset caught on. The catalysts for strengthening XRP are the growth in the number of unique addresses, the buyback of tokens by Ripple and the possible launch of a new product.
Market cap: $6 billion
Chainlink is a decentralized network that aims to connect smart contracts with data from the real world.
From the point of view of fundamental analysis, LINK is currently susceptible to a wave of a bull market, but in a short time, it can expect a fall: the news agenda is silent, and there are no updated reports on the implementation of the project on the platforms. However, the trend indicates further growth. LINK's controversial position is the basis for short-term speculation in the wake of rising asset values.
Market cap: $5 billion
Litecoin is created on the basis of the Bitcoin protocol, but differs by the used hashing algorithm, hard limit, and block transaction time
Binance will add options contracts to Litecoin
Globally, LTC is still in a more bullish position, so a price drop could be a good investment opportunity. One of the reasons is the addition of option contracts to Litecoin by the Binance crypto exchange.
Market cap: $6 billion
Bitcoin Cash is a peer-to-peer system created to become a secure global money with fast payments, micro-fees, high levels of privacy and high transaction capacity.
Bitcoin Cash completely contrasts the news agenda with technical analysis. The coin has growth potential, but the split within the community is slowing the process down. BCH can be viewed as a long-term investment because many investors believe that it is subject to the “BTC effect”, that is, it grows following the first cryptocurrency, but with a belated effect.
Market cap: $3 billion
Stellar is an open-source, decentralized platform that connects banks, payment processors, and people. This platform was designed to facilitate cross-border transactions to make them faster, cheaper, and more secure.
Center Consortium announced that USD Coin (USDC) will soon be available on the Stellar blockchain. Plus, it has completed upgrade to Protocol 15.
XML tends to rise in the wake of XRP, so it could be considered for adding to an investment portfolio in the short term. After Stellar top manager Justin Rice announced that Stellar had upgraded its protocol from version 13 to version 15 on November 23, the price of XLM rose 68%.
Market Cap: $5 billion
Cardano is a Proof-of-Stake (PoS) blockchain platform used primarily by agricultural companies. It also allows you to store data in a tamper-proof way, and, for retailers, to stop counterfeit goods.
Regardless of the optimistic outlook shown by the news and ADA metrics, according to the technical analysis of the cryptocurrency rate chart, a correction may begin in the near future. From the point of view of long-term investment, Cardano can be considered.
Please note: purchasing or selling Cryptocurrency carry significant risk. Prices can fluctuate at any time.
Because of such fluctuations, Cryptocurrency may gain or lose value. This is your responsibility on how to handle your own assets.