Top Cryptocurrencies to Watch in the Next Year

As we look ahead to the next year, it's exciting to think about which cryptocurrencies are poised to make a big impact. One of the most promising is Polkadot, which aims to create a decentralized platform for interoperability between different blockchain networks.

Polkadot's technology allows for seamless communication between blockchains, enabling the transfer of assets and data between them. This could revolutionize the way we think about cryptocurrency and blockchain technology.

Another contender is Solana, which has gained popularity for its fast transaction speeds and low fees. Solana's proof-of-stake consensus algorithm allows for a high level of scalability, making it an attractive option for users who want to make quick and affordable transactions.

Solana's focus on usability and accessibility has made it a favorite among developers and users alike, with a growing community of enthusiasts who are eager to see what the future holds for this cryptocurrency.

Suggestion: Polkadot Cryptocurrency News

Cryptocurrencies are virtual or digital currencies that use cryptography to secure their transactions and control the creation of new units. This technique protects electronic information by converting it into a code that is difficult to crack.

A key feature of cryptocurrencies is their decentralized nature, meaning there is no one central authority that oversees or regulates them. Every transaction is recorded on a digital ledger called a blockchain.

The blockchain is a public record of every transaction that has ever occurred, making cryptocurrencies 100% transparent. This transparency is a major advantage of cryptocurrencies.

Cryptocurrencies are often referred to as being decentralized because they don't rely on a central authority. The blockchain facilitates this movement and tracking without the need for a central authority.

The blockchain is open-source, meaning that any developer can view and build on this technology.

Bitcoin is considered the original cryptocurrency, while others are referred to as altcoins, which are alternative coins developed using blockchain technology.

All cryptocurrencies, including altcoins, have different functions and can be created in various ways.

Bitcoin is the original, and other coins are built upon its foundation, making them all part of the cryptocurrency family.

Worth a look: What Are the Top 10 Altcoins

Altcoins are considered alternative coins to Bitcoin, which is often viewed as the original cryptocurrency. Bitcoin is the pioneer that started it all.

In the world of blockchain technology, new types of coins are constantly being developed. This has led to a proliferation of altcoins, each with its own unique functions and creation methods.

All cryptocurrencies, regardless of their type, are built upon blockchain technology. This means they share some common characteristics, but may differ in their approach and purpose.

Bitcoin is often seen as the standard against which other cryptocurrencies are measured. Its influence can be seen in the many altcoins that have followed in its footsteps.

Cryptocurrencies are not just limited to Bitcoin or altcoins. New types of coins are emerging, each with its own distinct features and uses.

Related reading: New Cryptocurrencies

Security tokens are a type of blockchain-based, crypto-like token that represent a fractional interest in other assets. They can be used to validate ownership, like a receipt.

Companies could have security tokens that represent ownership, and this technology could also be applied to art to verify ownership.

Security tokens have many applications, including proving ownership of assets.

For more insights, see: Is Cryptocurrency a Security

Smart Contract Tokens are cryptocurrencies that pay for the costs of using a network, similar to tolls on the highway.

These tokens are paid by users to the participants responsible for maintaining the network, and in return, users can access applications and services, or even create their own applications, on the network.

Smart Contract Platform tokens are also known as infrastructure tokens, and their features can overlap with Currency sector tokens.

The key difference between Smart Contract Platform tokens and Currency sector tokens is that Smart Contract Platform tokens are required for users to interact with a blockchain for any type of transaction.

Tokens with a focus on interoperability, such as Cosmos and Polkadot, are also considered infrastructure tokens, as they link multiple blockchains or projects together.

Bitcoin is the original cryptocurrency and is still the most well-known, created in 2009 and currently the largest by market capitalization.

It's often seen as a way to store value, with many considering it "digital gold." Its value continues to go up, making it a good investment with a long history of steady growth.

Many shops accept Bitcoin, and it's the most common cryptocurrency for use, similar to traditional currencies.

The world of cryptocurrencies is vast and exciting, and with so many options out there, it can be hard to know where to start. Looking at both those that are currently in favor and those that look to be on the rise, we have listed the most widespread crypto assets.

Bitcoin is one of the most well-known cryptocurrencies, and it's been around since 2009. It's used as a store of value and a medium of exchange.

Ethereum is another popular option, and it's been gaining traction in recent years. It's used for a wide range of applications, including smart contracts and decentralized applications.

Ripple is a fast and secure way to make international payments, and it's been gaining popularity in the financial industry. It's used by banks and other financial institutions to facilitate cross-border transactions.

Litecoin is a peer-to-peer cryptocurrency that's similar to Bitcoin, but it's faster and more lightweight. It's used for everyday transactions and is a popular choice for online purchases.

Monero is a private and secure way to make transactions, and it's gaining popularity among those who value their anonymity. It's used for a wide range of applications, including online purchases and donations.

Cardano is a decentralized public blockchain and cryptocurrency project, and it's being used for a wide range of applications, including smart contracts and decentralized applications.

Bitcoin (BTC) is the original cryptocurrency and the largest by market capitalization. It was created in 2009 and is often seen as a way to store value, similar to digital gold.

Bitcoin is a peer-to-peer decentralized digital currency, allowing users to transact directly with each other without an intermediary. This is made possible through its revolutionary blockchain technology.

Many people use Bitcoin as a medium of exchange to buy goods and services, and it's accepted by many shops and online vendors. In fact, it's the preferred method of payment for some international transactions, especially in countries with limited banking access.

The cost of sending Bitcoin across borders is often much lower than international bank transfers, making it a cost-effective option for global transactions. Bitcoin's digital nature also allows it to be transferred globally with ease.

Bitcoin's limited supply (only 21 million will ever exist) and fixed supply schedule have led many to refer to it as "digital gold." This comparison highlights its potential as a store of value.

Ethereum was created in 2015 and quickly rose to become the second-largest cryptocurrency, designed to serve a different purpose than Bitcoin.

Ethereum is a decentralized platform that runs smart contracts, which are applications that can be built on top of its blockchain.

Smart contracts are programs that run exactly as programmed without any possibility of fraud or third-party interference, allowing for a wide range of possibilities, from games to financial applications.

Ethereum was founded by developer Vitalik Buterin in 2015, based on an idea he conceived two years prior.

Additional reading: Cryptocurrency Bitcoin Ethereum

Ethereum empowers users and developers to take an active role in the growth of the Ethereum ecosystem, creating a space for developers to create and deploy decentralized apps (DApps).

Ether (ETH) is the native crypto on the Ethereum network, and its use has opened up a world of use cases for crypto through smart contracts.

Ethereum is the blockchain birthplace of NFTs, which can be created, sold, and programmed through smart contracts to enable artists to get royalties or NFTs to have unique utilities.

BNB is the native token of Binance, one of the most used platforms for buying, selling, and transferring crypto. It can be used to pay fees on the Binance platform, often at a lower rate than other currencies.

BNB can be used to buy other cryptos on the Binance platform, making it a convenient option for traders. This is especially useful for those who frequently trade on the platform.

Here are some of the key uses of BNB:

BNB was created in 2017 and has since become a widely used cryptocurrency. It's now used for payments and transaction fees on Binance, making it an essential token for anyone using the platform.

Cardano is a smart contract platform created in 2015 by Charles Hoskinson, one of the co-founders of Ethereum.

It uses a proof-of-stake consensus algorithm instead of proof-of-work, making it more energy-efficient than other blockchain protocols. Processing Bitcoin transactions consumes around 110 Terawatt Hours per year, which is equivalent to the annual energy draw of small countries such as Sweden.

Cardano is said to be 1.6 million times more energy-efficient compared to Bitcoin, as cited by Forbes.

Founded in 2017 by Ethereum co-founder Charles Hoskinson, Cardano is an open-source, proof of stake (PoS) blockchain built from the ground up by bright minds in both crypto and academia.

Cardano differentiates itself from other smart contract blockchains through deep partnerships with leading academics and universities.

The development team takes a more methodical approach, holding any upgrades to the code underpinning the network to strict mathematical standards and painstakingly reviewing before implementation.

Cardano has suffered multiple outages and downtime, the latest of which occurred in 2023.

The blockchain is home to many decentralized applications (DApps) and associated assets, many of which appeared in 2021 and 2022 as developers saw potential in the platform.

ADA is the native crypto on the Cardano network, named after the 19th-century mathematician and world’s first computer programmer, Ada Lovelace.

Cardano has been around since 2017 but began development back in 2015 with help from an Ethereum cofounder.

Cardano is a decentralized, open-source, public blockchain.

Solana (SOL) is a high-speed blockchain protocol that can process thousands of transactions per second.

It was created in 2017 by Anatoly Yakovenko, the former Chief Technical Officer at Qualcomm.

Solana's main selling point is its speed, making it ideal for applications that need to process a lot of transactions quickly, such as video streaming or gaming.

The network uses a unique hybrid consensus model of Proof of Stake (PoS) and Proof of History (PoH) mechanisms.

This hybrid consensus mechanism uses significantly less computational power compared to Proof of Work (PoW), which is used by Bitcoin.

SOL is the native token on the Solana networks and is used for making or sending transactions, interacting with smart contracts, or for staking.

As of July 2024, Solana has almost 3,000 developers working on the network, which is a testament to its growing popularity and potential.

Despite some issues with outages and network restarts, Solana remains a heavyweight asset considering its market cap.

Dogecoin started as a joke in 2013, based on the Doge meme featuring a Shiba Inu dog.

It has since grown to become one of the more popular cryptocurrencies, thanks to its low price, which makes it accessible to everyone.

Dogecoin was created as a satirical commentary on the idea of crypto by former Adobe product manager, Jackson Palmer, in 2013.

It experienced brief record growth during the 2017/18 crypto bubble before falling in value.

After an endorsement by Elon Musk in 2021, the coin rose once again, and its price rose once more after Musk’s takeover offer of Twitter in 2022.

The Doge logo replaced the Twitter logo on the social media platform for a period, causing the price to pump several times during and after these moments.

Dogecoin remains a crypto mainstay, with greater adoption in the community – Robinhood launched wallet support for it.

Its price action continues to experience large price jumps and dumps based on speculative moments, but it has had a recent price surge on the back of Elon Musk's upcoming responsibilities in Trump's Department of Government Efficiency.

Explore further: Top Ten Crypto Coins

Polkadot (Dot) was created in 2016 and is a "next-generation" blockchain protocol. It's designed to be scalable, flexible, and interoperable, making it a unique player in the cryptocurrency space.

Polkadot uses "parachains", which are chains that can be used for specific applications, allowing for a more customizable and efficient use of resources.

Polkadot is working on a decentralized exchange called "Polkaswap", which will enable users to trade DOT, ETH, and other assets in a trustless manner.

TRON (TRX) is a decentralized entertainment protocol founded in 2017 with the goal of decentralizing the web and creating a more open internet.

TRON has its own scalable blockchain, designed to process transactions quickly.

TRON is working on several projects, including the TRON Arcade, a gaming platform.

Avalanche is a platform for launching decentralized finance applications and enterprise blockchains. It's designed to be scalable, secure, and interoperable.

Avalanche uses a "proof-of-stake" consensus model, which means users can earn rewards for staking their tokens on the network.

This model allows for a more efficient and secure way of validating transactions, compared to traditional proof-of-work models.

The Avalanche platform is built to support a wide range of use cases, from decentralized finance to enterprise blockchains.

Check this out: Avalanche Cryptocurrency News

Litecoin is a cryptocurrency that was created in 2011 as a "lightweight" version of Bitcoin.

Its faster transaction times make it a more efficient option for users.

Developers often use Litecoin as a "testnet" for Bitcoin, allowing them to test new features before implementing them on the more widely used cryptocurrency.

As one of the older cryptocurrencies, outside of Bitcoin, Litecoin has a large community of supporters.

Stellar (XLM) is a payments network that allows for fast, cross-border transactions. It's designed to be scalable and work with existing financial infrastructure.

Stellar is based on a "consensus protocol", which means it doesn't require mining to validate transactions, making it more energy efficient than other cryptocurrencies. This is a significant advantage over traditional cryptocurrencies.

Stellar is working on projects like "StellarX", a decentralized exchange, and "Lightning Network", designed to make Stellar even faster and more scalable.

Stellar is a payments network that allows for fast, cross-border transactions, making it more energy efficient than other cryptocurrencies.

Stellar's "StellarX" is a decentralized exchange, and its "Lightning Network" is designed to make Stellar even faster and more scalable.

XRP is the native token of Ripple, a payments network used by banks and financial institutions to settle transactions quickly and cheaply.

Ripple's XRP has been adopted by some of the largest banks in the world due to its useful application for financial institutions.

Related reading: Cost of Ripple Cryptocurrency

XRP serves as a bridge currency for financial institutions and payment providers to settle transactions quickly and securely across borders with less friction.

Ripple provides one frictionless experience to send money globally using the power of blockchain technology, allowing financial institutions to process payments anywhere in the world instantly, reliably, and cost-effectively.

Gemini is a licensed digital asset exchange and custodian that allows customers to buy, sell, and store digital assets in a regulated, secure, and compliant manner.

Ripple's global payments network includes over 300 customers across 40+ countries and six continents, and its vision is to enable a world where value moves as seamlessly as information flows today.

A different take: Cryptocurrency News Ripple

Chainlink Labs is the leading provider of secure and reliable Web3 services that have enabled trillions of dollars in transaction value across DeFi, insurance, gaming, NFTs, and other major industries.

Chainlink Labs empowers the broader Chainlink community and builds world-class Web3 solutions with global enterprises like AWS, Google, and T-Systems.

A unique perspective: Chainlink Cryptocurrency Price Prediction

Chainlink Labs connects the world to blockchains through its industry-standard Web3 services platform, enhancing smart contracts by connecting them to real-world data sources and off-chain computation.

The company's mission is to enable the next generation of smart contracts and build a world powered by truth, achieved through a fusion of cutting-edge academic research and industry focus on user needs.

Chainlink Labs has partnered with leading development teams such as Aave, Compound, Synthetix, and GMX, among many others, to build a world-class Web3 ecosystem.

If this caught your attention, see: Chainlink Cryptocurrency News

Auros is an algorithmic trading and market making firm founded in 2019.

Auros delivers best-in-class liquidity for exchanges and token projects, accounting for a significant proportion of global cryptocurrency volume.

Auros combines technological innovation with a unique partnership-based approach to redefine liquidity provision and sustainable growth in the digital assets space.

Hiro Systems is a company that creates developer tools for Stacks, a network that enables apps and smart contracts for Bitcoin.

These tools allow developers to innovate and build on Bitcoin in ways previously not possible.

Hiro works alongside various independent entities, developers, and community members to establish a user-owned internet on Bitcoin.

This collaboration is a key aspect of the Stacks Ecosystem, which aims to enable a new level of innovation and growth on the Bitcoin network.