The popularity of cryptocurrencies is constantly changing, as their prices can determine their market position. Whether they receive considerable media coverage or introduce new technologies, cryptocurrencies are volatile in both price and popularity.
Bitcoin, for example, entered the mainstream around 2017, when its price surged, and governments around the world began to take an interest in regulating it. Soon, projects like Ethereum, XRP, and Solana followed a similar path and contributed something unique to the industry, from smart contracts and cross-border transactions to NFTs. Investors can find the price of the best cryptocurrency at the moment on exchanges like Binance, where data is updated in real time, and trading tools are available.
But how promising are these coins besides their popularity? Can they withstand a long-term perspective in the financial world as future fiat projects? Let’s find out.
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Bitcoin has a long history of price movements
When Bitcoin was launched in 2009, few were interested in the peer-to-peer network, but as more investors and traders saw the opportunities, the coin gained value over time and became the largest asset by market capitalization today.
What made Bitcoin resilient was its bounce-back nature after the historical crashes following events like:
- The Mt. Gox Flash Crash was triggered by a hacker stealing coins and selling them for nothing;
- The China Ban panic led to a massive drop in price;
- The COVID pandemic made many long positions get liquidated in a day;
- The FTX Bankruptcy that affected the entire cryptocurrency industry;
These crash prices are normal since crypto is still linked with the real world. Hence, when investors across the globe are afraid or overly excited about certain assets, this might be due to other factors that inform a crypto strategy. Still, Bitcoin has a future as it has already gained a stable audience.
Ethereum is the leading competitor in smart contracts
Ethereum went live in 2015, when Bitcoin was already established, but it brought something new to the market: tools. While Bitcoin is a store-of-value asset, Ethereum relies on developments such as decentralized applications (dApps), smart contracts, and decentralized organizations.
While Ethereum initially used the proof-of-work consensus mechanism, it later switched to proof-of-stake, making one of the biggest and most important changes to a blockchain. So, instead of relying on an outdated system that was no longer profitable, Ethereum began operating on staking rather than mining. This also made Ethereum more energy-efficient and enabled validators to contribute to the platform’s security without specialized hardware.
Ethereum also grew due to the expanded ecosystem that includes:
- DeFi (decentralized finance) tools for lending and borrowing coins and facilitating trading;
- NFTs (non-fungible tokens) that ensure unique digital ownership, like collectibles and in-game items;
- Web3 games and the metaverse that support play-to-earn opportunities;
- Infrastructure contributions like decentralized storage, oracles, and web3 payment tools;
Solana has achieved fast transactions and low fees
For a long time, Solana was considered the biggest Ethereum competitor, as it offered features similar to Ethereum’s and was more efficient. For example, Solana can process up to 65,000 transactions per second, well beyond Ethereum’s capabilities.
Solana gained popularity as a high-performance network that enables fast, secure, and affordable digital transactions. This is possible with the innovative consensus mechanism, Byzantine Fault Tolerance (BFT), which works seamlessly with Proof-of-Stake. Together, these features ensure Solana operates accordingly without the risk of malicious or unreliable nodes.
Another great addition on Solana is the support developers have in terms of tools to help with the:
- Solana Development Course that includes a thorough introduction to the blockchain;
- Solana Bootcamp content that takes developers through all the source materials;
- Tutorials and guides for getting Sol as a devnet and optimizing compute usage;
Should you invest in popular cryptocurrencies?
On the one hand, popular cryptocurrencies exhibit a series of powerful factors that drive a coin’s success, such as community interest and support. On the other hand, popularity is fleeting, and after such periods, investors can experience massive price losses.
This might be more suitable for coins with smaller market capitalization, since they’re more likely to have a boom in prices, after which they become less valuable. Monitoring indicators beyond popularity is best for forming a clear opinion about a cryptocurrency project, but finding the balance between following trends and making your own decisions is ideal.
Meme coins and the popularity issue
Some of the leading meme coins in the industry, such as Dogecoin, Shiba Inu, and Pepe, have experienced their peak popularity among their communities. As they were inspired by real memes, those interested in acquiring them were long-term fans of these internet sensations and also wanted to show support for the growing crypto industry.
However, meme coins can be risky for investors and traders alike due to their extreme volatility. For instance, if someone popular endorses meme coins, their prices will surge for what it’s considered a matter of days, followed by an extreme crash. That’s what users must know about, but if they consider buying meme coins, they should:
- Choose a safe crypto wallet supported by blockchains like Ethereum or Solana;
- Buy base coins for swaps, such as BNB, for gas fees and swapping on networks;
- Use a DEX (decentralized exchange) to swap the meme coins;
- Store the coins in a safe wallet and track them accordingly;
You can find meme coins on both centralized exchanges (CEXs) and decentralized exchanges (DEXs). The first usually have intuitive interfaces and offer custodial wallets, while the latter support non-custodial wallets and offer broader support for a wide array of meme coins.
Conclusion
Popular cryptocurrencies like Bitcoin, Ethereum, and Solana gained people’s trust by overcoming challenges and market crashes. They’ve also contributed greatly to improvements in the industry, including peer-to-peer transactions, smart contracts, and faster, more accessible transactions. Besides them, popular cryptocurrencies include meme coins, whose value stems from community support and fleeting media coverage. While these are lucrative for traders, it’s best to practice caution when investing in them.
