As soon as cryptocurrencies started to emerge, they got many of us intrigued. Bitcoin (BTC) became the show-stopping cryptocurrency star that climbed to an all-time high of $64,000 in mid-April, outperforming Wall Street’s best-performing sectors.
Bitcoin and Dogecoin have grabbed our eyeballs but there are a host of other cryptocurrencies as well that are worthy of attention too.
There are numerous crypto projects currently working on promising ventures that could potentially revolutionize the fintech world. They are striving to offer practical services for businesses, developers, digital artists, and more.
Let's dive deep to know more about the five best crypto currencies in terms of utility.
Top Cryptocurrency Ranked by Utility
(Please note: All the values of cryptocurrencies have been taken from www.coinmarketcap.com)
This cryptocurrency with a price of $1,972 is rapidly exploding due to NFTs. It has emerged as the most popular crypto next to Bitcoin.
Experts suggest that though Gas fees are quite expensive, ETH is the best cryptocurrency in terms of utility due to the booming NFT market. We can see how not only NFTs played a part in Ether’s rapid surge, but also its support for DeFi also contributed to this rise.
Ethereum, launched in 2015, sought to build a platform for developers to build and host apps without centralized entities like Google and Apple. It allows decentralized apps (dApps) to run on the blockchain.
Its smart-contract functionality helps cut out the role of middlemen by making use of the code that auto-executes actions after certain terms and conditions. These smart contracts can be seen as well-programmed, trustworthy robots that have the ability to carry out transactions between two parties without time-consuming and industry-dominating intermediaries.
Ethereum's ridiculously high gas fees are one aspect that is disliked by the general public apart from its slow speed in processing transactions. We have the option to buy Ethereum from Binance, Bittrex, Coinbase, Coinmama, Gemini and Kraken.
The booming concept of decentralized Internet has brought Solana in the limelight. With a price of $31, it is not only promising, scalable but also incorporates a revolutionary new protocol known as the proof of history.
As we are aware of, all the widely popular blockchain protocols include proof of work and proof of stake. However, Solana uses a revolutionary new protocol called proof of history (PoH). This somewhat complex concept is touted as being faster than PoW and PoS because it maintains its own clock.
On the other hand, other blockchains make use of a sequential production of blocks to prove a passage of time. This becomes a source of delay as the network waits for confirmation and consensus before it can proceed towards transactions.
Being an Ethereum competitor, Solana plans to solve the issues with ETH such as slow transaction speed and high gas fees. It wants to be a more scalable, faster network as compared to ETH.
The major downside to Solana is that it is still in an experimental stage. The Solana team eventually hopes to surpass Ethereum, but it obviously needs to prove that it can be more successful than the most popular blockchain network (only after Bitcoin).
At a price of $210, Monero is considered the best cryptocurrency when it comes to maintaining privacy and confidentiality. As the demand for confidential currency is at an all-time high, this privacy-centric digital asset is also offering incredibly fast and inexpensive payments.
If anyone is looking for privacy, Monero is the go-to option. It works by building an opaque blockchain, via leveraging privacy-enhancing technologies to maintain anonymity.
On the other hand, Bitcoin and Ethereum have transparent blockchains. This means that transactions can be traced and linked to real-world identities. Monero has grabbed our eyeballs as it offers fast electronic cash, without any check-clearing fees or other hindrances.
On top of it, Monero is decentralized, users no longer need to worry about a single controlling authority overseeing their transactions. Though Monero is attractive owing to the privacy settings. However, it’s often delisted from exchanges. The simple reason is that privacy coins are often targeted for delisting. We can get Monero from Binance.
If one is considering business-centric cryptocurrencies to buy, then VeChain at a price of $0.07 can be considered the best choice. It incorporates business-oriented blockchain technology and has emerged as an enterprise-centric blockchain targeting several industries, such as healthcare, logistics, automobile and luxury fashion.
As explained by the article, VeChain was initially launched as a way to thwart knock-offs. It helps companies to ensure that their products are handled correctly and customers can also verify their purchases are legitimate.
As VeChain uses blockchain technology, the data cannot be changed, which acts as a huge advantage for businesses. In case anything goes wrong on the supply chain, we will be able to know the pain point by looking at the blockchain record.
VeChain also uses a token called VTHO, which pays for the power and energy needed to conduct transactions (similar to Ethereum’s gas fees).
Another plus for businesses is that VeChain has already secured partnerships with established companies such as BMW and Sam's Club. The biggest problem with this two-token system is that it can confuse investors. We can buy VeChain from Binance.
The most important cryptocurrency when it comes to blockchain interconnectedness is Polkadot at a price of $14.94. It has the potential to connect all major blockchains with a lot of room for growth.
Polkadot's uniqueness lies in the fact that it has developed cross-platform interoperability (CPI). On the other hand, other cryptocurrencies are solely linked to a single blockchain.
It can unite independent blockchains under one network to make them communicate and carry out operations together. One of the major downsides of Polkadot is that it is still in the development phase. Polkadot can be bought from Digifinex and Binance.
This blog ends here. While ending the blog we can conclude that the best cryptocurrency that offers utility is ETH: the digital currency of the Ethereum blockchain. It has become the second most popular cryptocurrency next to Bitcoin and even has the potential to surpass Bitcoin owing to the booming non-fungible token (NFT) market.
NFTs have grabbed eye-catching investments in the form of digital collectibles (e.g. music, artwork and tweets) that often run on the Ethereum network. We have seen a number of cryptocurrencies gaining momentum recently. For instance, Dogecoin was a meme-based joke coin that began to trend as soon as Tesla CEO Elon Musk promoted the token on social media.
Apart from Dogecoin and the others detailed above, several other Bitcoin forks also exist, like Bitcoin Gold and Bitcoin SV among other important coins such as Ripple (XRP), USD Coin, and Tezos. As per Investopedia, despite the massive number of competitors that have sprung up, Bitcoin has made its mark as the dominant player when it comes to usage and economic value.
Each coin (BTC) was worth roughly $35,000 as of January 2022, with a market capitalization of more than $653 billion, which is enough to demonstrate the importance of Bitcoin to date.
Next Read | What is the Future of Cryptocurrency?