Top 10 Cryptocurrencies to Invest in 2023 – With over 19,000 cryptocurrencies on the market, deciding where to invest can seem overwhelming. While the crypto market remains highly volatile, some major cryptos have solid foundations. As a preview, we’ll analyze the top 10 cryptocurrencies based on market cap that appear positioned for potential growth in 2023. However, risk exists with any investment.
Here at DigiNewsFeed, we’ll review the use cases, developments, and challenges facing each of the top cryptos as proof of their investment merit. Our rankings aim to help investors identify quality projects with longevity versus more speculative cryptos. Though massive gains occur during bull runs, the crypto market requires research and a long-term mindset. By exploring the landscape of leading cryptocurrencies, we hope to uncover emerging opportunities as well as warn of hype-driven fads. Even among the highest-market-cap cryptos, not every option makes for a smart investment in 2023.
Top 10 Cryptocurrencies to Invest in 2023
The top 10 cryptocurrencies by market cap, excluding stablecoins, are shown below.
Bitcoin(BTC)’s market cap is $502 billion and its year over year return is 28.7%.
The world’s most well-known and valued cryptocurrency, bitcoin, is still in existence around 14 years after it was first introduced. The blockchain-based, decentralized transaction verification and public ledger system of Bitcoin, which was developed by an unknown individual or group using the pseudonym Satoshi Nakamoto, completely changed the way that people think about digital security.
While investors and consumers find Bitcoin appealing because of its decentralization and openness, detractors have expressed worries about its energy-intensive proof-of-work consensus method and highlighted challenges with network scaling. Additionally, there are already a number of sizable crypto projects that both have blockchains with unique designs that enhance the functionality of Bitcoin and have faster transaction rates than Bitcoin.
Ethereum(ETH)’s market cap is $195 billion and its year over year return is 3.2%.
One of the first cryptocurrencies, or bitcoin substitutes, was Ethereum. Since its introduction in July 2015, Ethereum has become the most valued cryptocurrency besides Bitcoin. The first blockchain to use smart contracts—code that powers decentralized applications, or dApps—was Ethereum. More than 1,400 applications and developer tools are available on the Ethereum blockchain, and Ether is the network’s native coin.
Ethereum successfully made the switch from a proof-of-work consensus method to a proof-of-stake transaction verification system in 2023, which requires much less energy. Ethereum is currently a more environmentally friendly investment than Bitcoin, but its blockchain technology is what sets it apart.
BNB(BNB)’s market cap is $32 billion and its year over year return is -23.3%.
One of the biggest cryptocurrency exchanges in the world, Binance, has its coin called BNB. BNB was initially developed as an Ethereum-based utility token that allowed customers to get lower trading costs on the Binance exchange. But, since the token moved to Binance’s blockchain, BNB is now used for a variety of transactions, programs, and other use cases. Unfortunately, Binance’s market share in the United States decreased in 2023 as a result of the U.S. Securities and Exchange Commission accusing the firm of breaking securities laws and suing the exchange.
XRP(XRP)’s market cap is $26 billion and its year over year return is 48.9%.
A rival to SWIFT, or the Society for Worldwide Interbank Financial Telecommunications, is Ripple’s creation, the XRP global payments network. Banks and other financial institutions around the world transmit money via SWIFT. However, Ripple asserts that their technology is superior to the SWIFT system in terms of speed, cost, and transparency. The native cryptocurrency for the Ripple network and the XRP Ledger blockchain is called XRP. A judge in the Southern District of New York declared in July that XRP is “not necessarily a security” in some situations, potentially exempting it from the SEC’s regulatory purview.
Cardano(ADA)’s market cap is $8.9 billion and its year over year return is -49%.
Cardano is a decentralized proof-of-stake blockchain that was introduced in September 2017 with the goal of outperforming existing proof-of-work blockchains like Bitcoin, Ethereum, and others. Due to the fact that Cardano was founded by Charles Hoskinson, co-founder of Ethereum, it gained instant legitimacy among crypto fans. Cardano, like Ethereum, is functionally focused and seeks to be the preferred platform for dApp development and verifiable smart contracts. The network’s main coin for transactions and powering dApps is called ADA. Users of Cardano can stake ADA to contribute to the network’s transaction verification and get more tokens.
Dogecoin(DOGE)’s market cap is $8.9 billion and its year over year return is 1.8%.
Dogecoin was initially developed in 2013 as a spoof of Bitcoin. Still, due to its simplicity, well-known backers, and the popularity of its Shiba inu mascot online, many cryptocurrency traders now view it as a real investment. Elon Musk, a Tesla CEO and Dogecoin investor has frequently mentioned or made references to the cryptocurrency, causing volatility in Dogecoin’s share price. A group of dogecoin investors is suing Musk on the grounds that he improperly manipulated the price of the cryptocurrency. Mark Cuban, a multibillionaire businessman, is a backer of Dogecoin and has commended the cryptocurrency for its potential as a medium of trade.
Solana(SOL)’s market cap is $7.8 billion and its year over year return is -38.6%.
Solana debuted in March of 2020. Similar to Ethereum, its network offers non-fungible coins, smart contracts, and decentralized applications. But Solana is faster and less expensive than Ethereum because of its distinct hybrid proof-of-stake and proof-of-history verification system. Unfortunately, the Solana network has experienced frequent outages ever since it began operation, which has damaged its reputation in the cryptocurrency community. In February 2023, the Solana network was offline for almost 20 hours. Fortunately for investors, the XRP court decision significantly increased the price of Solana, making it the best-performing cryptocurrency on this list in 2023 with a triple-digit gain.
TRON(TRX)’s market cap is $6.8 billion and its year over year return is 20.8%.
Tron is a cryptocurrency project that was started in August 2017 with the long-term objective of decentralizing the internet utilizing blockchain technology and dApps. The network supports the greatest stablecoin circulation supply and has more than 177 million accounts. The native cryptocurrency of the Tron network, TRX, is a delegated proof-of-stake verification scheme. Originally based on Ethereum, TRX switched to its blockchain in 2018. Tron focuses on decentralized gaming and gambling applications that let content producers sell to customers directly. The SEC accused Justin Sun, the founder of Tron, of fraud and other securities law breaches in March 2023.
Polkadot(DOT)’s market cap is $5.3 billion and its year over year return is -41%.
2020 saw the release of the Polkadot blockchain by Gavin Wood, a co-founder of Ethereum. The protocol was developed to link various previously disconnected blockchains, enabling simple value and data transfers from blockchains like Ethereum and Bitcoin. Unique parachains, which are user-created blockchains that can be altered while still enjoying the same security benefits as the main Polkadot chain, are available on the Polkadot network. Additionally, parachains significantly reduce the processing load on the primary Polkadot chain. In Polkadot’s nominated proof-of-stake consensus architecture, nominators support validators financially as a sign of faith in their honesty.
Polygon(MATIC)’s market cap is $5 billion and its year over year return is -38%.
In order to connect and develop Ethereum-compatible blockchains and related initiatives, a platform called Polygon was introduced in 2017. By managing transactions on a distinct, Ethereum-compatible blockchain, Polygon was developed to assist with the scalability issues the Ethereum network is experiencing. The Polygon network uses a modified proof-of-stake consensus mechanism to validate transactions. The native coin of the project, called MATIC, is utilized to protect and control the network. Users also use MATIC to pay network transaction fees. Network users receive MATIC as a reward for staking their holdings to help validate transactions.
In closing, while the crypto market has seen immense volatility, the leading cryptocurrencies by market capitalization appear to have solid foundations for potential growth in 2023. However, thorough research is still essential before investing, even in top coins like Bitcoin and Ethereum. Factors like utility, adoption rate, technical roadmap, leadership team, and regulatory conditions should be analyzed for any cryptocurrency. The rankings highlight which established coins show promise versus more speculative alternatives.
But no investment is guaranteed, especially in the fickle crypto space. By diversifying across the most promising cryptocurrencies with real-world use cases, investors can prudently build exposure to this emerging asset class. While cryptocurrencies have substantial upside potential, maintaining reasonable expectations and always investing responsibly remains key. By staying objective amidst the hype, investors can identify and invest in the cryptocurrencies most likely to deliver long-term value.
For the latest cryptocurrency knowledge and news, subscribe to Diginewsfeed.com. Diginewsfeed.com provides in-depth coverage of all things crypto. By subscribing, you’ll stay up-to-date on the newest coins, trends, regulations, and analysis shaping the cryptocurrency sphere. Expert writers dive into the nuances behind blockchain technology and digital finance. Whether you’re a seasoned crypto trader or just starting out, Diginewsfeed.com offers valuable insights to enhance your understanding. From Bitcoin to altcoins and beyond, Diginewsfeed.com is the #1 destination for comprehensive cryptocurrency information. Subscribe now to unlock a wealth of crypto knowledge.