We will look at the top cryptocurrencies that will be in demand in 2023.
Top cryptocurrencies in 2023
Conclusion: What to Invest in 2023
At the moment, the top cryptocurrencies by capitalization are as follows:
In the article, I analyzed whether it is worth considering as an investment in cryptocurrency both the most popular options, and promising and not so hyped coins:
Bitcoin is the first and most popular cryptocurrency in the world. It was created in 2009 to offer an alternative to traditional fiat currencies and financial systems. One of the reasons for its popularity is that it is decentralized and not controlled by any single government or organization. In addition, Bitcoin has a limited supply (only 21 million coins), which makes it a deflationary asset and attractive to investors.
Despite the increasing complexity of mining, rising energy costs, huge competition and a price that has fallen compared to 2021, Bitcoin confidently takes first place in terms of capitalization. And many experts expect BTC to grow in 2024-2025.
Ethereum is the second largest cryptocurrency in the world by capitalization and a platform for creating blockchain-based decentralized applications. It has become popular due to its smart contract technology, which allows developers to create complex and automated financial products and services. In addition, Ethereum has a large and active developer community and supports many other cryptocurrencies and tokens. All this makes it one of the best cryptocurrencies.
The most popular stablecoin on the market is difficult to consider as an investment opportunity, because its essence is that its price is pegged to the US dollar. Tether is good for paying for goods and services or as a reserve place to store assets in case other coins start to fall. Even in the harshest crypto winter of 2022, Tether did not fall below $0.9959 - a stability worthy of respect.
Binance Coin is the utility token of the largest crypto exchange in the world, Binance. In terms of capitalization, if you do not take into account the stablecoins USDT and USDC, Binance Coin (or BNB) ranks third in the world after BTC and ETH.
In order to better assess the growth prospects of BNB, you need to understand what utility tokens are.
In cryptocurrencies, there are three gradations of tokens - Asset tokens (they have value in themselves, a vivid example is bitcoin as the first and most famous cryptocurrency in the world), Payment Tokens (used in payments, a vivid example is XRP from Ripple) and Utility tokens.
Utility tokens are a type of token that is designed to gain access to certain products or services on a token platform. For example, if a person buys bitcoin, he invests in an investment token and waits for its price to rise on the wave of the market's supply/demand mechanism. In the case of service tokens, everything is different - a person receives from the owner of the service a certain right to a product or service, which is acquired through utility tokens.
BNB is the most popular utility token in the world. Initially, it was used simply as a means of paying fees on the Binance network. The coin was based on the ERC20 standard using the Ethereum blockchain. BNB powered the entire Binance ecosystem and provided a discount on exchange fees.
The BNB token was launched in 2017 - the exchange unlocked 100 million coins and offered to buy 1 Binance Coin for 11 cents. The peak price of the coin was reached on May 10, 2021 - then 686 dollars were given for 1 token.
The CEO of Binance said that the number of tokens is limited - there can be no more than 200 million of them. Binance regularly burns BNB tokens in order to keep the coin deflationary. Every 3 months, the crypto exchange takes 20% of its profits, buys back BNB tokens with this money to burn them. BNB will be burned exactly until exactly 100 million of them remain, that is, 50% of the original amount, and this allows the token not to lose value. Therefore, BNB supporters say that in the long term, the price of the token will rise - due to the fact that there are fewer and fewer coins.
An extremely promising project with a high transaction speed, focused on launching smart contracts and interacting with decentralized financial systems.
Solana can process thousands of transactions per second and the developer and user fees remain below $0.01. In addition, thanks to the Proof of Stake system and other innovations, Solana does not require high mining costs and is not so harmful to the environment.
Extremely high transaction speed;
Low transaction costs;
Ability to support smart contracts and NFTs;
Low carbon footprint;
Low mining costs.
The main investor was the FTX exchange and its affiliates;
Instability – the network periodically have “breaks” for several hours;
Many dapp developers are moving to other blockchains.
Litecoin (LTC) is a project created in 2011 designed to provide fast, secure and low-cost payments using the unique properties of blockchain technology and open source.
Almost instant transactions (4 times faster) compared to Bitcoin (BTC);
Low transaction costs;
User data protection, anonymity;
The project has existed for more than 10 years.
May encounter regulation;
The token is actively used in the dark web;
PoW tokens other than bitcoin may not be able to compete with the emerging DeFi (decentralized finance) segment, where most projects operate on more modern PoS (Proof-of-Stake).
History of LTC price, over 10 years of trading
Cardano is a blockchain platform that uses a proof-of-stake consensus protocol (called Ouroboros) to validate transactions without high energy costs. The project is great for launching smart contracts for cryptocurrency transactions while maintaining the transparency principle.
Cosmos is a blockchain platform that differs from other blockchain solutions in that it allows the creation of interoperable blockchains. This means that blockchains built on Cosmos can work together in a single ecosystem, exchange data and transfer digital assets among themselves. This approach solves the problem of isolated blockchains and expands the possibilities of using blockchain technology.
The native ATOM token is used in the Cosmos ecosystem as a means of payment, as well as for voting and decision-making in the ecosystem. Owning ATOM also gives you the opportunity to become a validator of the Cosmos network and receive rewards for supporting the blockchain. This makes ATOM not only a means of payment, but also a tool for participating in the ecosystem and generating income.