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The number of altcoins has risen since bitcoin came into existence. The term altcoin encompasses all the cryptocurrencies in the sector, except for Bitcoin. There are nearly 9 000 cryptocurrency projects as per CoinMarketCap. However, it is extremely difficult to differentiate, which of those altcoin projects are legit, good for investments, pure scams, useless forks, or copies of other cryptocurrencies. This is one of the reasons why we’ve decided to select a few altcoin projects that are, in our view, already important to the cryptocurrency world and are valuable to users and investors.
Disclaimer: This article is not financial advice. Base all your investments on your own research and be sure to take appropriate due diligence before investing in any project.
Not surprisingly, the first altcoin up for discussion is Ethereum. This coin is actually the first altcoin by market capitalization with a market cap of over 200 billion dollars and has been one of the most useful and progressive cryptocurrencies.
Created in July 2015 by Vitalik Buterin, Ethereum has already proved itself by literally becoming the decentralized finance (DeFi) hub. Almost all the DeFi projects are built on the Ethereum network, which means that one of its early goals, to serve as a platform for decentralized applications, has already been fulfilled.
With the number of projects using it, the Ethereum network is being congested with a huge number of transactions, leading to extremely high fees. The average Ethereum fee now is around 16 dollars but at the end of February, this number was at its all-time high of almost 40 dollars (Ethereum Avg. Transaction Fee historical chart, 2021).
Therefore, if Ethereum hopes to continue serving the DeFi projects and all its users, the high transaction fees should be reduced to make it more affordable. This is also one of the resolutions that Ethereum 2.0 should bring with sharding and side chains helping with a throughput of transactions as well as decongesting the network. Nonetheless, it is great to see that the developers are trying to resolve one of the biggest problems of this altcoin since high transaction fees could potentially slow down the growth of Ethereum and make it lose its competitive edge (Treece, 2021).
Speaking of competition, one cannot simply ignore Cardano. A project, which has staggering 640% growth year-to-date at the time of writing the article, is one of the hottest projects in the cryptocurrency world right now. Being created in 2017 by Charles Hoskinson, Cardano is one of the best known and also best performing “Ethereum Killers.” This category of altcoins, which are describing themselves as next Ethereums or its killers, has a large number of coins, however, none of them comes so close to “killing” Ethereum as Cardano.
Cardano is describing itself as a blockchain platform for changemakers, innovators, and visionaries, with the tools and technologies required to create the possibility for the many, as well as the few, to bring about positive global challenges. Cardano has been the first blockchain proof of stake platform that was founded on peer-reviewed research (Cardano, n.d.).
It offers a wide variety of solutions and services such as credential verification and digital identity authentication, solutions to product counterfeiting, and supply chain tracking or onboarding of KYC and AML policies.
With a handful of great plans, tons of support from the community, and great momentum, Cardano faces only one problem now. It is still viewed as an “Ethereum Killer.” If this project should really make it, it can not be in the shadow of the possibly best altcoin. As Charles Hoskinson said, “even if more than 100 projects migrate from Ethereum to Cardano, to become successful, Cardano has to be viewed as a project on its own, not an “Ethereum Killer,” because this will always mean that Cardano is subordinated to Ethereum.” However, with great momentum and few interesting events coming up for Cardano, such as AdaPay on Shelly MainNet in few days, Cardano has all the cards in its hands.
Having looked at two platforms serving as space, where decentralized projects can be built and flourish, our next “Top Altcoin” pick comes from a different branch of crypto. Litecoin was one of the very first cryptocurrencies and altcoins since it was developed, or better said forked, as early as 2011. Charlie Lee as a creator of Litecoin forked Bitcoin, which is one of the reasons why on so many levels, Litecoin and Bitcoin are similar.
As described by their own website, Litecoin is a “powerful, political and economical tool which anyone, anywhere can use without permission to transact with anyone else in the world and partake in a genuinely global economy.” However, if you read this description without the name of the coin being anonymous, it is clear that this also suits the description of Bitcoin.
The difference between Litecoin and Bitcoin, although small, is as follows. If Bitcoin is thought of as a “digital gold,” Litecoin would be its “digital silver.” This is for several reasons. The supply of Litecoin is 4 times higher than the supply of Bitcoin. This leads then to the coins of LTC being much cheaper and much affordable for anyone.
Moreover, Litecoin transaction fees are much smaller than those of Bitcoin or Ethereum. The fees are averaging at around 3 cents, with peaks in 2018 at around 1,5 dollars, which is still much less than fees of the biggest cryptocurrencies in the world. This higher supply and affordability of LTC are the key reasons why Litecoin has a lot to offer for cryptocurrency enthusiasts (Litecoin Avg. Transaction Fee historical chart, 2021).
The year 2021 is also expected to be one of the most promising years for this coin. The reason is not however some continuation or exploitation of the bull cycle and the positive momentum of the whole sector, but mostly the implementation of MimbleWimble Extension Block (MWEB), which should enhance the privacy and scaling of the coin. Just a few days ago, David Burkett, lead Litecoin developer announced that the MWEB is code-complete and will be formally audited by fellow developers. After this process, which can take weeks to months, is done, the MWEB will be incorporated into Litecoin´s main codebase essentially improving the privacy and scalability of the “digital silver” (Young , 2021).
Bingbon derivatives exchange is aware of the potential and the importance of these coins for the cryptocurrency sector as a whole. All of these coins are in the TOP 10 according to the market capitalization and have been around for quite some time. Their daily traded volumes are also significantly higher than most of the cryptocurrencies. The plans for all of these coins in the future are very important for their success, however, if the past should be any indication, all of these coins have capable teams and dedicated community, which will support their decisions to move forward.
Those are just a few of the reasons why these three altcoins are offered on our platforms. Their name established in the past, importance in the present, and outlook for their future make them stand out in the highly competitive field. Because of this, all three of the above-mentioned altcoins are traded as derivatives on Bingbon platform.
The platform however contains much more progressive altcoins and important cryptocurrencies. That is also one of the reasons why the “Top Altcoin” series will have more parts since we will be looking at different sectors, where we will try to find important or interesting projects and explain them to you in an easy-to-understand way.
Ethereum Avg. Transaction Fee historical chart. (2021, 7). Retrieved from Bitinfocharts: https://bitinfocharts.com/comparison/ethereum-transactionfees.html
Treece, A. (2021, 2 10). The Intangible Reasons Ethereum and Bitcoin Lead. Retrieved from Coin Desk: https://www.coindesk.com/intangible-reasons-ethereum-bitcoin-lead
Cardano. (n.d.). Retrieved from Cardano: https://cardano.org
Litecoin Avg. Transaction Fee historical chart. (2021). Retrieved from Bit info Charts: https://bitinfocharts.com/comparison/litecoin-transactionfees.html
Young , M. (2021, 3 17). Litecoin Completes MimbleWimble Code for LTC Scaling and Privacy. Retrieved from Beincrypto: https://beincrypto.com/litecoin-completes-mimblewimble-code-ltc-scaling-privacy/