Bitcoin is the king of the crypto space and even Ether has seemed unable to dethrone it for quite some time. Yet, recently, some altcoins have made a breakthrough.
Bitcoin remains the number one cryptocurrency with a market share of 38.95% of the total crypto market, valued at $1.98 trillion, according to CoinGecko. Bitcoin is followed by Ether, Ethereum’s own blockchain token, with a market share of 18.51%.
At the time of writing, bitcoin is down in value again to $38,971.75. However, it is still the most expensive cryptocurrency in the world. Ether has not been able to reach the same heights for a few years, but it confidently holds second place, currently valued at $2,905.59.
It has to be kept in mind that cryptocurrency is a very volatile asset. Their prices can suddenly go up and down in a few minutes with no logical explanation. The market does not often develop according to fundamentals.
These cryptocurrencies, like Ether, carry value for users. They are the result of a project that aims to solve one or more problems related to the crypto space.
Solana is Solana’s own blockchain token. Thanks to its technology, this platform allows developers to create various applications. These are applications for decentralized financial services (dApps), projects with non-exchangeable tokens (NFT) or projects related to web3, the new iteration of the Internet that will replace web2, the centralized Internet that we currently know.
Solana also boasts of being the fastest blockchain – up to 710б000 transactions per second. This is important because Bitcoin and Ethereum blockchains are notoriously slow. In addition, Solana charges low transaction fees, another advantage over its predecessors.
These parameters are important because they are attractive to developers. The more people who use Solana, the better for the platform’s token, because the usefulness of the blockchain also guarantees its future, at least in the medium term.
However, Solana is vulnerable to hacker attacks. Hackers attack bridges, the infrastructure that establishes the connection between blockchains.
SOL currently has a market share of 1.73%, but it is expected to increase. The value of the token is $96.
Cardano blockchain offers almost the same services as Solana. However, developers claim it is faster.
The native token is Cardano or ADA. ADA currently has a market share of 1.54%. Reaching a peak of nearly $3 in September 2021, the token is now worth $0.88.
“Cardano is restoring trust in global systems by creating a more secure, transparent and sustainable foundation for transactions and human exchanges, management systems and enterprise growth through science,” the platform says.
This is yet another blockchain for creating DeFi projects and DApps. And yes, they also call themselves the fastest. Still, the presence of competitors only proves the success of the niche.
The native token is Avalanche (AVAX). AVAX currently has a market share of 1.06%. The token is worth $73.09.
“Launch Ethereum dApps that instantly confirm transactions and process thousands of transactions per second, far beyond any decentralized blockchain platform today,” the platform developers urge.
The site also suggests, “Deploy blockchains that fit your own application needs. Create your own virtual machine and dictate exactly how the blockchain should work.”
Polkadot presents itself as a blockchain of blockchains, or a parachain. Essentially, the protocol allows blockchains to communicate with each other. Polkadot says it has achieved interoperability between blockchains. As a matter of fact, it allows you to switch from one network to another without crashing.
“Polkadot allows any type of data or asset to be transferred across the blockchain, not just tokens,” the website says. “Connecting to Polkadot gives you the ability to interact with a wide range of blockchains across the Polkadot network.”
Its native token is Polkadot (DOT). DOT currently has a market share of 1.03% and a value of $17.34.
Polygon offers almost the same services as Solana, Cardano and Avalanche. However, the system claims to be faster. Its native token is Matic (MATIC).
MATIC currently has a market share of 0.48% and a price of $1.31.
The platform says that it “allows developers to build scalable, user-friendly dApps with low transaction fees without sacrificing security.” NFT minting platforms on this blockchain are proof of this. Their commissions are very low indeed, tending towards zero.
As the decentralized finance market develops, tokens gain real value. They do not work for their owners speculatively but allow them to earn extra income. By purchasing tokens in DApps, you can participate in trades, lock them into a liquidity pool and exchange them for other tokens. Cryptocurrency in DeFi is full-fledged money, not just hype.
Of course, bitcoin remains the leader, being a measure of the value of the blockchain as such. But it may be worth topping up your wallet with alternatives as well.