Cryptocurrencies are now more popular than ever. It is attracting many new investors every day. So, we thought it would be a good time to explore some of the most popular cryptocurrencies of 2022 so far.
#1 Solana (SOL)
What is SOL? That is one question we will answer, along with how to buy SOL and why you should buy SOL.
Solana is a fast, scalable, and censorship-resistant blockchain focused on financial applications. Solana’s consensus algorithm achieves high throughput (upwards of 50k tps), low latency (400 ms), and low fees ($0.00001 per tx).
SOL is currently ranked #7 in the market cap and has been performing well in 2022. However, it stands out because of what is to come for the network.
Solana has been building out an ecosystem around its DeFi platform “Serum” which will go live later this year. The serum is being built as a decentralized exchange with interoperability between all cross-chain assets on the Solana blockchain. That means you can trade ETH for BTC without actually moving the funds of their respective blockchains!
To enable this functionality, SOL will be the governance token for Serum DEX and also the token used to pay transaction fees on the network. The release of this new application could drive demand for SOL and push it higher on our list.
#2 Polkadot (DOT)
Polkadot is a proof-of-stake cryptocurrency with a total supply of 10 million DOT. Proof of stake is a way for blockchain consensus to be derived without mining, which requires large amounts of computing power.
Most popular cryptos are proof of work cryptocurrencies and therefore require mining algorithms to create new coins, validate transactions, and secure the network. Polkadot is a much more energy-efficient cryptocurrency than those that use proof-of-work consensus algorithms. Proof-of-stake (PoS) cryptocurrencies have some benefits over proof-of-work (PoW). It is cheaper, faster, and greener. Polkadot plans to launch its PoS consensus algorithm called GRANDPA.
Because it is extremely expensive to run proof-of-work mining operations, it can be difficult for individual investors who don’t have access to cheap electricity or other resources needed for profitable mining operations to participate in major PoW cryptos like Bitcoin or Ethereum. Polkadot solves this problem with its unique PoS system; anyone who holds DOT tokens will be able to earn rewards from the staking process on transaction fees alone.
#3 Cardano (ADA)
Cardano is a blockchain project that aims to improve Ethereum’s shortcomings. Like Ethereum, Cardano also features a smart contract platform but with a focus on interoperability.
Cardano offers its users the ability to create their tokens and is one of the first projects to utilize Haskell coding, which comes from the functional programming language family. That gives Cardano an edge in safety by allowing for formal code testing.
#4 Dogecoin (DOGE)
Dogecoin was initially created as a joke, but the cryptocurrency quickly found its footing and has become one of the leaders in the industry. The name “Doge” comes from an Internet meme featuring a Shiba Inu dog; this reference to popular culture is also where the mascot of Dogecoin originates. Despite its roots in jest, Dogecoin has seen tremendous growth and adoption in recent years and currently has a market capitalization (market cap) of $1.5 billion.
Even though Dogecoin was meant as a joke at first, it quickly gathered steam and has become one of the most popular cryptocurrencies today. It’s even used on social media platforms like Reddit to tip users for quality posts or comments.
The currency’s name comes from an Internet meme featuring a Shiba Inu dog. The reference to pop culture is also where the mascot for Dogecoin originates. A Shiba Inu dog with text bubbles spelling out different words or phrases that have come to define internet speech over time.
#5 Bitcoin (BTC)
It’s the world’s first cryptocurrency. It was created in 2009 and remains the most popular cryptocurrency today. It doesn’t have a central authority, but it does have a decentralized ledger called a blockchain, where all transactions are recorded publicly and chronologically.
Bitcoin is the most expensive cryptocurrency on this list, making its market cap much larger than other cryptocurrencies. The total supply of Bitcoin is capped at 21 million coins.
#6 Ethereum (ETH)
Ethereum (ETH) is the second-largest cryptocurrency by market capitalization, which means that it has a high price and a high circulating supply. Ethereum is down 25 percent over the last month. It has been in decline since its peak of about $4,200 in May. That could be attributed to the recent announcement that ETH would be changing its consensus mechanism from proof of work to proof of stake, which will likely impact mining rewards for this currency.
So, which crypto would you like to invest in?