Top 10 Cryptocurrencies In February 2022 – Forbes Advisor UK

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, which can make it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies based on their market capitalisation, or the total value of all of the coins currently in circulation.

1. Bitcoin (BTC)

• Market cap: Over £537 billion

Created in 2009 by someone using the pseudonym Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.

Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy a Bitcoin for about £370. As of Feb. 1, 2022, a single Bitcoin’s price was over £28,000. That’s growth of about 7,600%.

2. Ethereum (ETH)

• Market cap: Over £240 billion

Both a cryptocurrency and a blockchain platform, Ethereum is a favourite of programme developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to February 2022, its price went from about £8 to over £1,980, increasing nearly 25,000%.

3. Tether (USDT)

• Market cap: Over £57 billion

Unlike some other forms of cryptocurrency, Tether is a stablecoin, meaning it’s backed by fiat currencies like UK pounds, US dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favoured by investors who are wary of the extreme volatility of other coins.

4. Binance Coin (BNB)

• Market cap: Over £46 billion

The Binance Coin is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world.

Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

In 2017 it was priced under 10p, but by 1 February this year, it had risen to around £277, a gain of approximately 377,000%.

5. U.S. Dollar Coin (USDC)

• Market cap: Over £32 billion

Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by US dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions.

6. Cardano (ADA)

• Market cap: Over £26 billion

Somewhat later to the crypto scene, Cardano is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification present in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralised applications, which are powered by ADA, its native coin.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was about 1.5p. As of 1 February 2022, its price was about 77p, an increase of 5,150%.

7. Solana (SOL)

• Market cap: Over £25 billion

Developed to help power decentralised finance (DeFi) uses, decentralised apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms that help it process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at £0.57. By the beginning of February 2022, its price was around £74, a gain of almost 13,000%.

8. XRP (XRP)

• Market cap: Over £21 billion

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was £0.004. As of 1 February 2022, its price reached 46p, equal to a rise of more than 10,000%.

9. Terra (LUNA)

• Market cap: Over £15 billion

Terra is a blockchain payment platform for stablecoins that relies on keeping a balance between two types of cryptocurrencies. Terra-backed stablecoins, such as TerraUSD, are tied to the value of physical currencies. Their counterweight, Luna, powers the the Terra platform and is used to mint more Terra stablecoins.

Terra stablecoins and Luna work in concert according to supply and demand: When a stablecoin’s price rises above its tied currency’s value, users are incentivised to burn their Luna to create more of that Terra stablecoin. Likewise, when its value falls compared to its base currency, this encourages users to burn their Terra stablecoins to mint more Luna. As adoption of the Terra platforms grows, so too does the value of Luna.

From 3 January 2021, when its price was £0.47, Luna has risen almost 8,000% to £37.79 just over a year later.

10. Polkadot (DOT)

• Market cap: Over £14 billion

Cryptocurrencies may use any number of blockchains. Polkadot (and its namesake crypto) aims to integrate them by creating a cryptocurrency network that connects the various blockchains so they can work together. This integration may change how cryptocurrencies are managed and has spurred impressive growth since Polkadot’s launch in 2020.

Between September 2020 and 1 February 2022, its price grew about 565%, from £2.15 to £14.33.

*Market caps and pricing current as of 1 February 2022.