The popularity of Bitcoin has enabled other cryptocurrencies to be in the market spotlight as people are now swarming in the crypto space. Since its emergence, Bitcoin has maintained the repute of the most expensive cryptocurrency in terms of market capitalization and market volume. But other mainstream cryptocurrencies are thriving to gain stable grounds in the crypto market.
In this article, we will be discussing stable coins that are less vulnerable to price fluctuations and a better security architecture that trumps others.
1. Ethereum (ETH)
Ethereum is one of the most stable and popular cryptocurrencies, after Bitcoin. It is characterized by a decentralized platform that enables smart contracts and decentralized apps (dApps) to be effectively used without fraud, meddlesome of a third party, or downtime.
Reputed with a broad financial value, Ethereum is a digital asset that can be easily accessed by anyone from any part across the globe. Also, Ethereum has worked to revamp the financial infrastructure of some developing countries in such a way that the citizens of such countries can have easy access to bank accounts, insurance, loans, and other financial instruments.
Ether is the cryptographic token used in Ethereum, and every Ethereum are run by it. Ether was launched in 2015 and it’s the second-largest cryptocurrency by market capitalization, after Bitcoin. As of the time of writing this article, 1 ETH is the equivalent of $3,125.
2. Tether (USDT)
Tether sits as one the earliest stablecoins whose popularity has been attached to the $1 value of its price. Stablecoins are coins whose market price is pegged to a currency. With the major feature of cryptocurrencies that are better known for their volatility, there is always doubt and fear of investing in them. But the creation of stablecoins like Tether has been able to allay the lingering fear while reducing the fluctuations.
The rationale behind the creation of Tether was to achieve the goal of pegging the coin price to $1, so $1 is in reserves for every Tether released. Tether is the third-largest cryptocurrency with a market cap of about $78 billion.
3. Binance Coin (BNB)
Binance Coin in its early stages functions as a mode of payment for the transaction process with the Binance exchange. Binance exchange is one of the largest crypto exchanges, where its users are required to use Binance Coin as a token, to buy other coins.
Today, Binance Coin is waxing stronger and popular as it is being used for numerous transactions. Created as an ERC-20 token being used in the Ethereum blockchain, Binance Coin is the fourth-largest cryptocurrency, with a market cap of about $75 billion.
4. Cardano (ADA)
Created in 2015, Cardano stands as one of the most affordable cryptocurrencies. It is a culmination of experimentation by some cryptographic, mathematicians, and engineers. Through its “Ouroboros proof of stake” approach that enables two different blockchains to be used, Cardano has been able to find its way from obscurity up to one of the biggest cryptocurrencies in the crypto space.
The idea of the two blockchains was conceived to manage ordinary transactions while the other focuses on smart contracts. The major feature pitches Cardano with speed and scalability. Often referred to as “Ethereum killer”, Cardano’s blockchain can operate more than Ethereum. Cardano is the 7th largest cryptocurrency in the market, with a market cap of about $38 billion.
5. Polkadot (DOT)
Created in 2017, Polkadot is a unique proof of stake coin that is geared at ensuring it is compatible with other blockchains. Defined with the major component of the relay chain, it enables the communication between different networks. Also, the creation of parachains (alternative blockchains) is enabled for special application purposes.
Polkadot is nuanced from Ethereum, such that developers can design their blockchain instead of developing decentralized apps (dApps). This can even be achieved with the security that Polkadot blockchain provides. Today, Polkadot is the 10th largest cryptocurrency, with a market cap of about $24 billion.
There are approximately 6,000 cryptocurrencies in the crypto market, as new currencies are emerging daily. One of the most popular ways of trading and investment is the use of cryptocurrencies, irrespective of their volatility.