Since cryptocurrencies have come into existence, there are two words we all have heard over and over again, Bitcoin and Ethereum. Bitcoin was the original and first cryptocurrency, founded in 2009 by Satoshi Nakamoto. Based on blockchain technology, it is spread across a network of thousands of computers. It operates on the ‘proof of work’, which ensures that Bitcoin remains secure and safe from fraudsters. Ethereum is also a blockchain-based platform which is best known for its native cryptocurrency, ether (ETH). The decentralized nature of blockchain technology secures the Ethereum network, allowing ETH to gain value. Ethereum was the first to support a network of decentralized programmes (dApps) and smart contracts, which developed on the Ethereum platform and are vital to its operation. It is second only to bitcoin in the race among the top cryptocurrencies. But other than these two major players, there are cryptocurrencies that saw a major boom in their values. Let’s take a look at those.
Terra (terra to INR) is a blockchain-based payment mechanism, with a market capitalization of around $33 Billion. Terra-backed stablecoins, such as TerraUSD, are cryptocurrencies whose value is related to the value of real-world currencies. Luna, its counterbalance, is responsible for the operation of the Terra platform and the production of more Terra stablecoins. Terra stablecoins and Luna operate on the supply and demand principle, which means that when the price of a stablecoin increases above the value of its associated currency, users are motivated to burn their Luna in order to produce more of that Terra stablecoin. Similarly, when the value of Luna declines in relation to its base currency, users are encouraged to burn their Terra stablecoins in order to generate more Luna. As the Terra platforms become more widely used, the value of Luna increases as well. Luna’s price has increased by more than 14,300 percent since its inception in January 2021, when it was $0.64. A year later, it is worth $92.64.
DOGE, or Dogecoin, was developed in 2013 as a joke by its inventors, software programmers Jackson Palmer and Billy Markus. This was the first ‘meme’ coin, since then, many of its competitors have come into existence. Elon Musk mentioned it in a tweet, which accelerated its growth pace. This joke immediately gathered popularity, and the value of dogecoin skyrocketed. Dogecoin is now worth around $0.14 (DOGE to INR). In a relatively short period of time, Dogecoin has risen dramatically in value from its initial market value. Because of its rapid growth, it is presently ranked among the top ten most valuable currencies in the crypto market and is expected to increase much more in the following year.
Tron is a blockchain-based decentralized digital platform that has its own currency/coin known as Tronix or TRX. TRX’s network topology is similar to Ethereum’s in that it employs a peer-to-peer network to allow suppliers to communicate directly with buyers, facilitating transparency. Tron has acquired popularity as a result of its operating system, which allows for the use of a variety of decentralized apps, smart contracts, and tokens. Users may use Tron tokens to connect directly to producers, cutting out the middlemen and making content more affordable.
Since it is not confined to tokens, polkadot allows blockchain transactions to take place across a variety of other blockchains. The fact that most cryptocurrencies function independently and place restrictions on the sharing of data or the transfer of tokens gives DOT an edge over other cryptocurrencies. Dot’s technology provides connectivity to other blockchains through the use of a relay chain and parachains, which operate in parallel. Because of the significant economic stability provided by this technology, DOT has rapidly become popular and is among the most sought after cryptos in 2022.
Tether is a stable coin backed by the US dollar. Stablecoins are cryptocurrencies backed by collateral or fiat money. This reduces investment risk and price volatility, which benefits investors. As a result, its value is more stable than other, more volatile cryptos. Transparency, security, and ease of use are all features of Tether which are housed on the Ethereum blockchain network. This is one of the reasons why Tether has become so popular in 2022. The tether may be used to pay, buy other cryptocurrencies, or merely as a secure investment.