In the first few months of 2022, the cryptocurrency market experienced significant volatility. The total market capitalization of all cryptocurrencies has fluctuated between over $3 trillion and less than $2 trillion at times.
Due to various factors that have affected the market, major cryptos have started the year with negative performance. Some of these include the Ukraine-Russia conflict, the Federal Reserve’s plan to raise interest rates, and how governments will regulate cryptocurrencies.
While many cryptocurrencies lost value within the first quarter of the year, there are still plenty that are performing well . Read on to learn more about some of the top cryptocurrencies of 2022 so far.
The XRP token is a digital asset that is the native cryptocurrency of the network provider, Ripple. It has various advantages over other digital assets, such as its low cost and fast transaction speed.
XRP is a fast and secure digital currency that can handle up to 1,500 transactions per second. Its low fees are also contributing to its popularity.
The popularity of Bitcoin has made it the most widely used cryptocurrency on the market. It’s also being regarded as a store of value due to the continuous rise in inflation.
Despite the initial sluggish start to the year, the value of Bitcoin has continued to increase. It’s a great alternative to traditional assets and can be used to increase one’s wealth over time.
Ethereum is a decentralized network that enables applications to run on its platform. Unlike Bitcoin, Ethereum was created to be secure and open-source. Its native cryptocurrency is Ether.
Currently, Ethereum uses the Proof-of-Work protocol to keep its network’s integrity. It’s expected to switch to the PoS protocol during the upcoming version of the platform, which will provide faster transactions and better energy efficiency.
Due to its smart contract capabilities, Avalanche is a blockchain platform that enables decentralized applications to operate seamlessly. It can handle transactions with a high rate of 6,500 transactions per second.
Unlike Ethereum and Bitcoin, Avalanche has a PoS consensus mechanism. This feature allows its decentralized applications to run more smoothly. Another key advantage of Avalanche is its network’s spread, which allows developers to create their own smart contracts.
Since its creation in 2013, Dogecoin has become one of the most popular cryptocurrencies on the market. It’s an open-source digital currency that can be used by anyone. In early 2021, it reached a high of 74 cents.
Elon Musk, the CEO of Tesla, has been an avid supporter of Dogecoin. Despite being a relatively new cryptocurrency, it’s not considered a scarce one. Its 10,000 coins per minute limit has raised questions about its value.