Top 10 cryptocurrencies of 2024

Key points

• Bitcoin was the first cryptocurrency and remains the most valuable.
• Since 2009, the cryptocurrency market has expanded to include countless coins.
• Most cryptocurrencies have small market capitalizations.

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

While there are thousands of cryptocurrencies on the market, bitcoin and ethereum still dominate. Their market capitalizations comprise about 71% of the $2.16 trillion global crypto market.

Here are the 10 largest cryptocurrencies by market cap, excluding stablecoins.

1. Bitcoin (BTC)

Price: $58,611.86

Market cap: $1.2 trillion

Year-over-year return: 91%

Since its creation in 2009, bitcoin remains the most popular and valuable cryptocurrency. Bitcoin was created by a person, or possibly a group, using the pseudonym Satoshi Nakamoto. It’s a blockchain-based, decentralized transaction verification system that has revolutionized how we think about digital security.

Bitcoin’s decentralization and transparency make it appealing to investors and users. But critics have raised concerns about its energy-intensive, proof-of-work consensus mechanism and difficulties scaling the network. Several large-scale crypto projects also have faster transaction speeds than bitcoin. Other blockchains even have special designs to improve bitcoin’s functionality.

2. Ethereum (ETH)

Price: $3,142.24

Market cap: $377.7 billion

Year-over-year return: 66%

Ethereum was one of the first altcoins. An altcoin is an alternative to bitcoin. The leading altcoin debuted in 2015 and ranks second to bitcoin in market capitalization.

What sets the ethereum blockchain apart is its introduction of smart contracts. These contracts are pieces of code that run decentralized applications. The ethereum blockchain now supports over 4,400 dApps and developer tools.

The native cryptocurrency of the ethereum network is ether. In 2023, ethereum transitioned from a proof-of-work consensus mechanism to a less energy-intensive, proof-of-stake transaction system. Ethereum is now a greener investment than bitcoin.

3. BNB (BNB)

Price: $535.81

Market cap: $79.1 billion

Year-over-year return: 116%

BNB is a cryptocurrency issued by Binance, one of the largest cryptocurrency exchanges. It was created as a utility token built on the ethereum network. Users can use it to access discounted trading fees on the Binance.US cryptocurrency exchange.

The token has since transitioned to Binance’s blockchain. BNB can now be used for a wide range of transactions, applications and other purposes. Unfortunately, Binance’s U.S. market share took a hit in 2023 after the U.S. Securities and Exchange Commission sued the exchange for allegedly violating securities laws.

4. Solana (SOL)

Price: $143.49

Market cap: $66.6 billion

Year-over-year return: 548%

Solana is a relatively new crypto, having launched in March 2020. Designed to compete with the ethereum network, solana’s blockchain supports smart contracts, dApps and nonfungible tokens. But solana’s hybrid proof-of-stake and proof-of-history verification system makes it cheaper and faster than ethereum.

Unfortunately, the solana network has struggled with outages that have undermined its credibility. It has suffered several major outages since the beginning of 2022. It was also down for around 19 hours in February 2023. Solana must improve its stability to be seen as an “ethereum killer.”

5. XRP (XRP)

Price: $0.45

Market cap: $25.0 billion

Year-over-year return: -5%

Created by Ripple Labs, this global payments network is designed to be an alternative to the Society for Worldwide Interbank Financial Telecommunications. SWIFT is the global system banks and other financial institutions use to transfer money.

Ripple Labs claims its technology is faster, cheaper and more transparent than SWIFT. XRP is the native cryptocurrency designed for the Ripple network and XRP Ledger blockchain. In 2023, a judge ruled that the crypto is “not necessarily a security” in certain circumstances. But the SEC seeks to levy a nearly $2 billion penalty against Ripple for allegedly selling XRP to institutional investors.

6. Toncoin (TON)

Price: $7.19

Market cap: $18.0 billion

Year-over-year return: 435%

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

Despite the network’s speed, it must attract more developers to compete with ethereum in the long term. Toncoin has generated impressive bullish momentum following reports that Telegram is considering an initial public offering. A successful Telegram IPO likely wouldn’t impact TON demand. But it would significantly increase Telegram’s visibility.

7. Dogecoin (DOGE)

Price: $0.11

Market cap: $15.9 billion

Year-over-year return: 68%

Dogecoin was created in 2013 as a parody of bitcoin. But dogecoin enthusiasts argue that the popular meme coin is a legitimate investment. The crypto has the backing of several high-profile supporters.

Tesla CEO Elon Musk is among the cryptocurrency’s most visible investors. By simply mentioning the crypto, he has triggered extreme volatility in dogecoin prices. Musk faces a lawsuit by dogecoin investors who allege he illegally manipulated prices. Billionaire entrepreneur Mark Cuban is also a dogecoin supporter.

Another thing to note: DOGE has a valuable online brand and a famous Shiba Inu mascot.

8. Cardano (ADA)

Price: $0.40

Market cap: $14.2 billion

Year-over-year return: 35%

Cardano is a decentralized proof-of-stake blockchain that debuted in September 2017. The crypto is designed to be more energy-efficient than bitcoin and other proof-of-work blockchains. From the start, cardano’s founder, Charles Hoskinson, co-founder of ethereum, boosted its credibility.

Like ethereum, cardano is focused on functionality, appealing to developers building dApps and verifiable smart contracts. ADA is the primary cryptocurrency used on the network to run dApps and facilitate transactions. By staking cardano, users can help verify the network’s transactions. They then earn additional tokens as a reward for participating in the proof-of-stake system.

9. TRON (TRX)

Price: $0.13

Market cap: $11.7 billion

Year-over-year return: 72%

Tron is a cryptocurrency platform that aims to decentralize the internet using blockchain technology and dApps. Launched in August 2017, the network has over 228 million accounts as of May 2024. The tron network uses a delegated proof-of-stake verification system. Its native cryptocurrency is TRX.

TRX was originally an ethereum-based token but transitioned to its own blockchain in 2018. Tron specializes in decentralized entertainment, such as gaming and gambling applications. The network allows content creators to sell their work directly to consumers. In March 2023, the SEC charged tron founder Justin Sun with fraud and other securities law violations.

10. Avalanche (AVAX)

Price: $25.78

Market cap: $10.2 billion

Year-over-year return: 94%

Avalanche’s mainnet went live in September 2020. Like many other cryptos, avalanche aims to become a fast, secure blockchain. The crypto is a contract platform developers can use to build dApps.

Avalanche’s chief competitor is the ethereum network. But AVAX has several unique features. For one, it’s capped at 720 million tokens.

The blockchain’s native token is used to manage governance and transaction fees. AVAX also has a unique consensus mechanism that involves a sufficient majority of validators to approve a transaction.

*Market caps and pricing are sourced from CoinMarketCap.com, current as of 8:07 a.m. ET on July 11, 2024.

What is cryptocurrency?

Cryptocurrencies are private digital currencies. They’re typically decentralized and secured via large computer networks.

In contrast, federal governments and central banks back the U.S. dollar and other fiat currencies. The decentralized nature of cryptocurrencies allows them to function on their own, based solely on their programming code. Cryptocurrency transactions are verified and recorded using blockchain technology on a transparent public ledger.

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. Create an account. You may need to choose the appropriate account type and submit personal information.
2. Verify your identity. This process may involve submitting a copy of a bank statement, photo ID or other documents.
3. Read and agree to a user agreement. User agreements typically spell out the terms of service associated with your account. These include any penalties or fees you may need to understand.
4. Link a payment method. Choose a bank account or other account type to link to your crypto trading account. This will allow you to transfer money in and out of the account.
5. Fund your account. Consider how much money you want to start with in your crypto trading account. Then, initiate a transfer from your linked 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?

It’s tough to see crypto’s long-term path in the coming decades. But crypto bulls believe in growth in global crypto adoption. That, coupled with capped or limited cryptocurrency supplies, could spell a crypto boom ahead.

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.