Blockchain technology and cryptocurrencies can be complex and overwhelming for newcomers. Many people are curious about digital assets but lack a clear understanding of what different coins do or why they matter.
This guide introduces the top 100 cryptocurrencies by market capitalization, based on a historical snapshot from mid-2018. It aims to provide a clear, neutral overview of major projects and their intended purposes, serving as an educational starting point for those new to the space.
Understanding Cryptocurrency and Market Capitalization
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies operate on decentralized networks based on blockchain technology—a distributed ledger enforced by a network of computers.
Market capitalization, or market cap, is a key metric used to rank cryptocurrencies. It is calculated by multiplying the total supply of coins by the current market price of a single unit. This list is based on data from July 2018, reflecting the market landscape at that time.
The Top 10 Cryptocurrencies in 2018
Bitcoin (BTC)
Bitcoin is the first and most well-known cryptocurrency. It functions as a peer-to-peer electronic cash system, allowing users to send and receive payments without a central authority.
Ethereum (ETH)
Ethereum is a decentralized platform that enables developers to build and deploy smart contracts and decentralized applications (dApps). Its native currency, Ether, is used to power transactions on the network.
Ripple (XRP)
Ripple is both a digital payment protocol and a cryptocurrency. It is designed for fast, low-cost international money transfers and is often used by financial institutions.
Bitcoin Cash (BCH)
Bitcoin Cash was created from a hard fork of Bitcoin. It was designed to increase the block size, allowing for more transactions per block and improved scalability.
EOS (EOS)
EOS is a blockchain platform focused on enabling decentralized applications. It aims to provide an operating system-like set of services and functionalities for dApps.
Stellar (XLM)
Stellar is an open network for moving and storing money. Its goal is to connect financial institutions and facilitate low-cost cross-border payments.
Litecoin (LTC)
Litecoin is a peer-to-peer cryptocurrency created as the "silver to Bitcoin's gold." It offers faster transaction confirmation times and a different hashing algorithm.
Cardano (ADA)
Cardano is a blockchain platform for smart contracts, with a research-driven approach to design and development. It aims to provide a more secure and scalable infrastructure.
IOTA (MIOTA)
IOTA is designed for the Internet of Things (IoT). It uses a directed acyclic graph (DAG) structure instead of a traditional blockchain, aiming to feeless micro-transactions.
Tether (USDT)
Tether is a stablecoin pegged to the US dollar. It is designed to combine the benefits of cryptocurrency with the stability of a traditional currency.
Notable Projects from the Top 100
The following sections break down the rest of the historical top 100 list into categories based on their primary use cases, though many projects overlap in their functions.
Smart Contract and dApp Platforms
These platforms provide the foundation for building decentralized applications and executing programmable agreements.
- Tron (TRX): Aims to build a decentralized internet and provide a platform for content sharing and entertainment applications.
- NEO (NEO): Often called "China's Ethereum," it supports digital assets and smart contracts with a focus on regulatory compliance.
- Ethereum Classic (ETC): The original Ethereum chain that continued after a contentious hard fork, supporting smart contracts.
- Waves (WAVES): A platform designed for custom token creation, transfer, and trading.
- Lisk (LSK): Allows developers to build applications in JavaScript and deploy them on their own sidechains.
Privacy-Focused Coins
These cryptocurrencies emphasize user anonymity and transaction confidentiality.
- Monero (XMR): Uses advanced cryptography to obfuscate transaction details, making them private and untraceable.
- Dash (DASH): Offers optional privacy features through its PrivateSend function, in addition to instant transactions.
- Zcash (ZEC): Uses zero-knowledge proofs (zk-SNARKs) to allow users to transact without revealing sender, receiver, or amount.
- Verge (XVG): Focuses on privacy by obfuscating user IP addresses through the use of multiple anonymity-centric networks.
Exchange and Ecosystem Tokens
These tokens are native to specific cryptocurrency exchanges or service platforms, often providing utility within their ecosystem.
- Binance Coin (BNB): The native token of the Binance exchange, used to pay for trading fees and participate in token sales.
- Huobi Token (HT): An exchange token used for fee discounting and other services on the Huobi platform.
- Kucoin Shares (KCS): The dividend token of the KuCoin exchange, providing holders with a share of the platform's trading fees.
Payments and Transfers
These projects are primarily focused on facilitating fast and inexpensive transactions.
- Nano (NANO): Utilizes a block-lattice structure for feeless and instantaneous transactions.
- Bitcoin Gold (BTG): A fork of Bitcoin that aims to make mining more decentralized by using a different mining algorithm.
- Dogecoin (DOGE): Originally created as a joke, it gained a community and is used for tipping and small transactions online.
Oracles and Interoperability
This category includes projects that connect blockchains to external data or enable different chains to communicate.
- Chainlink (LINK): A decentralized oracle network that provides real-world data to smart contracts on the blockchain.
- ICON (ICX): A project aimed at hyperconnecting independent blockchains so they can interact with each other.
- Wanchain (WAN): Focuses on building a distributed financial infrastructure with cross-chain capabilities.
Data and Storage
These cryptocurrencies support decentralized data storage and computation.
- Siacoin (SC): A decentralized cloud storage platform that allows users to rent out their unused hard drive space.
- Golem (GNT): A decentralized marketplace for computing power, where users can rent out their spare CPU cycles.
- MaidSafeCoin (MAID): The token for the SAFE Network, which aims to create a decentralized and autonomous data and communications network.
Frequently Asked Questions
What is the difference between a coin and a token?
A coin, like Bitcoin or Litecoin, operates on its own independent blockchain. A token, like many ERC-20 tokens, is built on top of an existing blockchain like Ethereum and relies on its network.
Why is market capitalization an important metric?
Market cap provides a rough gauge of a cryptocurrency's relative size and stability compared to others. A higher market cap often suggests a more established and widely adopted project, though it is not a measure of technical quality.
Are all these projects still active today?
The cryptocurrency space evolves rapidly. While many of the top projects from 2018 remain significant, some have faded in relevance, and new ones have emerged. Always conduct your own recent research before engaging with any project.
What does 'decentralized' mean?
Decentralization means that no single entity has control over the network. Operations are distributed across a wide network of computers, making the system more resilient and censorship-resistant.
How do I stay safe when learning about cryptocurrencies?
Be wary of promises of guaranteed returns. Use reputable sources for information, enable strong security practices (like two-factor authentication), and never invest more than you are willing to lose. To deepen your understanding of market dynamics and project valuations, you can explore more educational resources.
What was a common goal for many projects in 2018?
A major trend was the attempt to solve the "blockchain trilemma," which is the challenge of achieving scalability, security, and decentralization simultaneously. Many new projects proposed novel consensus mechanisms and architectures to address this.
Key Takeaways from the 2018 Crypto Landscape
The 2018 list showcases a period of intense experimentation and diversification in the cryptocurrency world. Beyond simple peer-to-peer cash systems, developers were building platforms for applications, rethinking privacy, and creating infrastructure for a new digital economy.
This historical overview serves as a reminder that the crypto space is dynamic. While foundational projects like Bitcoin and Ethereum have endured, the competitive landscape is always shifting. Understanding the goals and functions of different digital assets is a crucial first step for anyone looking to navigate this complex and innovative field. For those looking to analyze current market trends, you can view real-time market data tools.