Cryptocurrencies

Top 10 cryptocurrencies in February 2022 – Forbes Advisor UK

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 just starting out in the crypto world. To help you get your bearings, here are the top 10 cryptocurrencies based on market capitalization, which is the total value of all coins currently in circulation.

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1.Bitcoin (BTC)

  • Market capitalization: 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 ledger recording transactions spread across a network of thousands of computers. Since additions to distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is secure and safe from fraudsters.

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

2. Ethereum (ETH)

  • Market capitalization: over £240 billion

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers due to its potential applications, such as so-called smart contracts that automatically execute when conditions are met and non-fungible tokens (NFTs). ).

Ethereum has also seen phenomenal growth. From April 2016 to February 2022, its price jumped from around £8 to over £1,980, increasing by almost 25,000%.

3. Tether (USDT)

  • Market capitalization: over £57 billion

Unlike other forms of cryptocurrency, Tether is a stablecoin, which means it is backed by fiat currencies such as the British Pound, US Dollar, and Euro and hypothetically holds a value equal to the one of these denominations. In theory, this means that Tether’s value is meant to be more consistent than that of other cryptocurrencies, and it’s favored by investors who are wary of other coins’ extreme volatility.

4. Binance Coin (BNB)

  • Market capitalization: over £46 billion

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 beyond simply facilitating transactions on the Binance exchange. Now, it can be used for commerce, payment processing, or even travel booking. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

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

5. US Dollar Coin (USDC)

  • Market capitalization: over £32 billion

Like Tether, USD Coin (USDC) is a stablecoin, which means it is backed by US dollars and targets a ratio of 1 USD to 1 USDC. USDC is powered by Ethereum and you can use USD Coin to trade globally.

6. Gimbal (ADA)

  • Market capitalization: over £26 billion

A bit later on the crypto scene, Cardano stands out for its early adoption of proof-of-stake validation. This method speeds up transaction time and decreases energy consumption and environmental impact by removing the competition and problem-solving aspect of transaction verification found on platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which are powered by ADA, its native coin.

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

7. Solana (SOL)

  • Market capitalization: over £25 billion

Developed to help power the uses of decentralized finance (DeFi), decentralized applications (DApps) and smart contracts, Solana operates on 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 launched in 2020, the price of SOL started at £0.57. At the start of February 2022, its price was around £74, a gain of almost 13,000%.

8.XRP (XRP)

  • Market capitalization: over £21 billion

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

In early 2017, the price of XRP was £0.004. As of February 1, 2022, its price has reached 46p, an increase of more than 10,000%.

9. Earth (LUNA)

  • Market capitalization: over £15 billion

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

Terra and Luna stablecoins work together based on supply and demand: when the price of a stablecoin exceeds the value of its linked currency, users are incentivized to burn their Luna to create more of that Terra stablecoin. Likewise, when its value drops against its base currency, it encourages users to burn their Terra stablecoins to mint more Luna. As adoption of Terra platforms increases, so does Luna’s value.

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

10. Peas (DOT)

  • Market capitalization: over £14 billion

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

Between September 2020 and February 1, 2022, its price increased by around 565%, from £2.15 to £14.33.

* Market capitalizations and pricing in effect as of February 1, 2022.

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