The world of cryptocurrencies has once again entered the zone of turbulence against the background of the epidemic of coronavirus, but the most popular cryptocurrencies are still afloat despite the large-scale collapse of financial markets.
Cryptocurrencies are created all the time. Their amount exceeds 2000. Some of the have already managed to establish themselves as one of the most popular ones in the crypto community.
First, when we talk about the popularity of crypto the size of the cryptocurrency asset capitalization is taken into account. Of course, these figures are relative, and shares can be distributed only among a few major players, but capitalization is an integral indicator of interest in cryptocurrency.
Secondly, we consider the number of cryptocurrency exchanges on which the virtual asset is available in pairs with the Tether Stablecoin (USDT). Tether is the main conduit between the world of fiat and cryptocurrencies, as well as the largest stablecoin on the market.
Thirdly, we calculate the frequency of mention of cryptocurrency on Twitter over the past seven days. Why in this social network? Perhaps, this is one of the main platforms used by the main representatives of the cryptocurrency industry. Of course, this indicator does not reflect the actual popularity of the asset but allows us to assess the extent of awareness about the cryptocurrency.
So let’s look at what cryptocurrencies are in top 5:
Bitcoin naturally takes the first place in all such ratings. This is a long-lived cryptocurrency with the most impressive capitalization. It is not in vain called “digital gold.” And although the correction of the rate against the background of the raging coronavirus shook this status, Bitcoin still remains the main flagship of the cryptocurrency market and it quickly managed to get back on its feet.
When Bitcoin is bad, it’s bad for everyone. However, the recent growth for the first time showed that in the cryptocurrency industry the newest cryptocurrencies can grow much faster than Bitcoin itself. However, they also fall much faster.
And although at the time of compiling this rating Bitcoin is trading adjacent to its maximum for December 2017, many are anticipating even more growth in future.
Ethereum, or ether, is the main platform for the deployment of decentralized applications and crypto-exchange, and the most important altcoin of the cryptocurrency market. Ether became the ancestor of 90% of cryptocurrency projects. Almost all trading pairs on cryptocurrency exchanges are tied to assets based on the Ethereum blockchain.
In addition, an update of the network called Ethereum 2.0 looms on the horizon, which will translate the Ethereum blockchain algorithm model from Proof-of-Work to Proof-of-Stake. On the one hand, this means abandoning miners as validator blocks in favor of cryptocurrency steak. On the other hand, such a decision may lead to a hard fork, as the U.S. Securities and Exchange Commission (SEC) may view the new algorithm model as a reason to class as a security. So far, the SEC does not consider the ether as a security, but if the process does start, it can negatively affect the price of the cryptocurrency.
Some expect the ether to repeat the fate of bitcoin, but so far Ethereum has established itself exclusively as the main blockchain springboard for the deployment of cryptocurrency and blockchain startups.
One of the most controversial digital assets of the cryptocurrency market also deserves attention. The story around the creation of XRP constantly causes fierce debate, and the founder of the project, Jed McCaleb, and at all sometimes associated with the hacking of the largest bitcoin exchange Mt.Gox.
Of course, to call XRP a cryptocurrency is a big misconception, but XRP is probably one of the few assets that has been able to make the most progress in cooperation with financial institutions. And, as you know, it is on the institutionalists make the greatest bet in the development of the industry. Active is often accused of artificial manipulation of price activity due to the fact that all tokens are already mined and are, for the most part, in the hands of one company – Ripple Labs. However, all these accusations are denied by the partners with whom Ripple Labs is working now, namely American Express, Bank of America, Merrill Lynch, Royal Bank of Canada, Bank of England, HSBC, Barclays and hundreds of other traditional financial institutions.
Bitcoin Cash (BCH)
Some will say that the currency that appeared as a result of a hard fork, should not have a place on the list. However, the capitalization suggests otherwise. Roger Vera (chief ideologue of BCH) should pay tribute: at the time of writing, the capitalization of BCH exceeds $6 billion.
Bitcoin Cash is one of the few hard fork assets that has not only lost its popularity despite fierce competition with BTC but is also actively developing as a more affordable and improved analogue.
Of course, there are other cryptocurrencies that are also interesting in terms of technology and perspective. We did not mention projects such as Chainlink (LINK), ICON (ICX), TRON (TRX) and many others. This does not mean that these cryptocurrencies do not deserve attention. It’s just that they haven’t been able to build up the same “muscle mass” as the above currencies.
In our top cryptocurrencies, we have included assets based solely on the volume of capitalization, as an indicator of liquidity, as well as the frequency of mention over the seven-day period.