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Top cryptocurrencies in 2022. What are coins and how do they differ

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Not everyone knows that in the world today there are not even dozens, but  hundreds of different cryptocurrencies . Knowing them for sure is a daunting task. We talk about the most popular digital assets.

  • How the top 10 was chosen
  • What does the top 10 most popular cryptocurrencies among Russians look like?
  • ” Dark horses ” of the crypto market
  • Does it make sense to bet on crypto ?

How the top 10 was chosen

There is no global rating that determines the popularity of a particular cryptocurrency in a particular country. In October 2021, Brand Analytics estimated that about 600 cryptocurrencies are mentioned in the Russian-speaking space. After that, the agency did not release any reports, so we adjusted their results to reflect more recent research on the popularity and security of cryptocurrencies. The data of the top 10 most demanded digital assets of April 2022 from  Forbes was taken as the basis  – in this rating, the coins are ranked by their  market capitalization .

In addition, when compiling the list, the data of the cryptocurrency security rating , first published in mid-April 2022, were used. Its authors took into account five criteria: the presence of an audit of the project, insurance and the Bug Bounty program , as well as the composition of the team and the results of hacking attempts.

Finally, in our list, we took into account the data of the rating of cryptocurrencies compiled using artificial intelligence based on several parameters.

The frequency of mentioning cryptocurrencies by Russians does not always have a direct correlation with the market capitalization of digital assets, on the basis of which most of the current world ratings are built. Now in Russia, the popularity of cryptocurrency may be due to its high anonymity or ease of cashing out.

Data on the capitalization of cryptocurrencies for the rating are taken from CoinMarketCap (relevant as of April 25, 2022).

The final rating of cryptocurrencies as of April 2022

Cryptocurrency Brand Analytics
(number of mentions per month)
Forbes
(based on market cap)
Cryptocurrency ranking – 2022 (based on AI findings) cer.live rating
(based on security criteria)
Final place in the ranking
Bitcoin (BTC) one one one 1520 one
Tether (USDT) 2 3 3 1466 3
Litecoin (LTC) 3
Ethereum (ETH) four 2 2 1306 2
Ripple (XRP) 5 7 7 7
Dogecoin (DOGE) 6 eleven 1207 eight
Solana (SOL) 7 6 6 fifteen 5
Monero (XMR) eight 24 9
BowsCoin (BSC) 9
Travala.com (AVA) ten
Binance Coin (BNB) four four 193 four
USD Coin (USDC) 5 5 6
Cardano (ADA) eight 9 16
Terra (LUNA) 9 eight 267 9
Avalanche (AVAX) ten ten 194 ten

What does the top ten most popular cryptocurrencies among Russians look like?

Bitcoin (BTC) ,  $880 billion market cap

Bitcoin (BTC) is the most popular cryptocurrency among Russians. It was created in early 2009 by a person (or group of people) hiding under the pseudonym Satoshi Nakamoto. Bitcoin is built on a technology called blockchain. It is a virtual decentralized network that can record transactions in real time. Acting like a digital ledger, the blockchain connects users around the world and verifies financial transactions.

There can be no more than 21 million bitcoins, this feature is the basis of the cryptocurrency. If ordinary money is printed on machines, then anyone can “mine” bitcoins. You just need to download special software that will start the calculation process. Bitcoins appear as a result of mathematical operations, gradually. As of April 27, 2022, just over 19 million bitcoins have already been mined . The last bitcoin is expected to be mined in 2140.

In May 2016, you could buy bitcoin for about $500. On April 27, 2022, the price of one coin was over $38,900.

It is the limited supply that is considered one of the important advantages of bitcoin. According to Nikita Ponomarev, co-founder of the IT company for the development and promotion of blockchain projects Wamsoftware.io, bitcoin is bought primarily for long-term investments: “Experience shows that over the years, the price of bitcoin will only grow. Now, in 2022, huge corporations are buying and hoarding bitcoin in their accounts, realizing that it can be an ideal store of wealth.”

The popularity of bitcoin is also raised by the fact that there are many ATMs and services that accept it for payment. According to Coin ATM Radar, there are 52 bitcoin ATMs installed in Russia and 33,072 in the US. For comparison, only two Russian cities have crypto ATMs where you can cash out Ethereum: a couple of devices operate in Yekaterinburg and one more in Nizhny Tagil.

The main disadvantage of bitcoin is that operations with it are slower and more expensive than with other cryptocurrencies. As of the end of April 2022, the average bitcoin network fee is 0.000041 BTC ($1.62). For Dogecoin, it is much lower – 0.999 DOGE ($0.14). Bitcoin transaction confirmation time can be from 6 to 46 minutes.

Ethereum (ETH), capitalization – 521.36 billion dollars

Ethereum is the second most popular crypto asset in the world, created in 2015 by Vitalik Buterin. The main difference between Ethereum and Bitcoin is the ability not only to transfer money, but also to create smart contracts, that is, to bind an operation to the fulfillment of certain conditions. Potentially, this technology can be widely used in finance, management, auditing and logistics.

Unlike Bitcoin, Ethereum is not just a store of value. There are many decentralized applications running on Ethereum . With their help, you can create your own applications and offer financial services based on cryptocurrencies: exchange, lend, bet, trade, raise funds. Buterin calls his platform the “new internet.” The ETH cryptocurrency is the “fuel” of this network, which increases the demand for the asset.

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From April 2016 to early April 2022, the price of Ethereum rose from around $11 to over $3,450, an increase of over 31,000%. On April 27, the price of the asset was about $2,880.

The advantages of Ethereum are a powerful project development support team , strong developers . The technology is being improved – and if not in the summer, then by the end of 2022 they promise to release an updated version, where operations will be even faster and cheaper, says Nikita Ponomarev.

Nasdaq lists Ethereum as one of six coins that could see explosive growth in 2022. Last year, Ethereum received a major update that included a reduction in the supply, which currently stands at 120.33 billion coins. The update also improved the platform’s scalability, enabled faster transaction processing, and lowered transaction fees.

Among miners, Ethereum is popular due to its high profitability with relatively small investments. Most NFT platforms are also built on Ethereum.

The disadvantage of Ethereum is that the mission of ETH is unlimited. In the future, this may affect the value of coins. Also, cryptocurrency is not widely accepted by companies and governments.

Stablecoin Tether (USDT), market capitalization – $ 78 billion

Tether (USDT) became the world’s first stablecoin, a cryptocurrency whose value is pegged to the US dollar. Launched in 2014 by bitcoin investor Brock Pierce, entrepreneur Reeve Collins and software developer Craig Sellers under the original name Realcoin.

Tether has traditionally been used as a long-term store of value, as it doesn’t fluctuate as much as bitcoin. Also, the stablecoin allowed Russians to continue paying abroad even after the blocking of Visa and MasterCard cards issued in the Russian Federation.

Nasdaq rates Tether as less speculative than Bitcoin and Ethereum, an asset.

Among the absolute advantages of Tether are its low volatility and high transaction speed. Tether allows you to receive a payment within a few minutes after sending, while receiving and sending bitcoin can take several hours. At the same time, transfers between Omniwallet wallets are free. The coin is also protected from attacks by scammers and hackers.

One of the significant disadvantages of Tether is its centralization. The only issuer of this stablecoin is the management company, which drastically reduces the financial stability of the model and makes it vulnerable, especially since Tether Limited does not disclose data on its real reserve reserves and refuses to conduct an independent audit. Investors even admit that in fact there is no backing of the cryptocurrency with real assets, and the peg to the dollar is fictitious. “Tether’s audits are not public, and it is impossible to verify the reliability of its promises of reliability,” explains Nikita Ponomarev.

In addition, some users are repelled by the need to verify their identity to link an account to a bank card. When exchanging USDT for real dollars, many sites ask for passport data and even video identification. Maintaining anonymity under such conditions will not work.

$Binance Coin (BNB), capitalization – 68 billion dollars

Binance Coin is a token originally designed for trading and paying fees on Binance, one of the largest crypto exchanges in the world. The coin allowed for discounts on transaction fees, withdrawals, and other transactions.

Since its launch in 2017, the capabilities of Binance Coin have expanded significantly – now it is even used to book trips. The token can also be exchanged for other cryptocurrencies such as Ethereum or Bitcoin.

The price of BNB in ​​2017 was only 10 cents. By early April 2022, it had risen to around $445, an increase of 445,000%.

A serious drawback of the coin for Russians was the restriction introduced by the Binance platform for Russian users. While the platform promised that accounts under $10,000 would remain intact and active, the news took exchange users and Binance Coin holders by surprise.

Another disadvantage of BNB is that its progress is directly related to the reputation of the Binance exchange. Any exchange problems directly affect the reputation of BNB.

Solana (SOL), capitalization – 35.20 billion dollars

Solana (SOL) is the fifth cryptocurrency by capitalization. It was created in 2017. Solana representatives position their network as “the fastest blockchain in the world and the fastest growing ecosystem in the crypto-currency field.” Like Ethereum, Solana allows you to create smart contracts known as Solana Programs.

The key difference between Solana and Ethereum is a higher transaction speed at a lower cost.

In early 2022, Solana launched Solana Pay, a decentralized payment service that allows merchants to transact in digital dollars such as USDC for fractions of a penny and without intermediaries at the point of sale.

The disadvantage of Solana is insecurity: the distributed ledger of the asset has recently been subjected to DDoS attacks more than once, as a result of which the network was temporarily disconnected. The increase in the number of DDoS attacks on the Solana network  is also explained by fundamental vulnerabilities in its blockchain.

US Dollar Coin (USDC), capitalization – $53 billion

USD Coin (USDC) is another stablecoin created by Center, backed by cryptocurrency exchange Coinbase and fintech company Circle. The main goal of the project was to create a token that will protect traders and investors from losing assets. As with Tether, this is achieved by pegging to the dollar. USDC is powered by Ethereum, USD Coin can be used to make global transactions.

Stablecoins are backed by reserve assets. The USDC price stability is in stark contrast to the price fluctuations of other cryptocurrencies such as Bitcoin and Ethereum.

There are many stablecoins similar to USDC on the market, so the competition is high. This stablecoin is relatively new and many investors are not sure how it will perform in the long term.

Ripple (XRP), capitalization – 65 billion dollars

The creators of XRP position it as the best digital asset for global payments. XRP does not use blockchain. Instead, transactions are processed by the Ripple Protocol Consensus Algorithm (RPCA), a proprietary development of the company. Transactions in RPCA are confirmed by specially selected validator nodes, not miners. By checking the results of the transaction records, they choose a leader with the true version of the transaction history and then synchronize their databases with it. This principle allows you to confirm transactions faster than in the Bitcoin network. It also makes the system more resistant to attacks.

Ripple technologies allow banks to significantly increase the speed and reliability of transactions around the world – in comparison with traditional interbank payment systems such as SWIFT. At the same time, the cost of such operations is much lower.

The platform already cooperates with such large banks as UniCredit, Western Union, Santander and UBS, and Microsoft and Google are among the partners and investors of the project.

Cryptocurrency is not mined and is not decentralized. A third of the issued coins are distributed among users, the remaining 65% belong to Ripple Labs. This can lead to course manipulation. XRP has also featured in major scandals and litigation.

Dogecoin (DOGE), capitalization – 65 billion dollars

Dogecoin was created in 2013 by programmers Billy Markus and Jackson Palmer. With its help, the developers wanted to make fun of the hype and speculation around cryptocurrencies. Subsequently, Palmer said in  an interview that he never counted on such consequences for his joke.

The Dogecoin symbol is a Shiba Inu dog, popular in Japan. Today, DOGE is increasingly being used as a means of payment.

By mid-2021, Dogecoin was one of the top five cryptocurrencies with the largest capitalization. Since then, the value of the currency has plummeted, but by April 2022, Dogecoin was able to return to the top 10.

Elon Musk called Dogecoin the best cryptocurrency. In January 2022, the price of Dogecoin rose by more than 10% after Musk tweeted about the start of accepting cryptocurrency at the Tesla store.

Dogecoin is similar to Bitcoin and is quite secure and easy to transact. In addition, Dogecoin has no mining restrictions.

Dogecoin is susceptible to hacking attempts. The number of nodes in the Dogecoin network is significantly smaller than in other cryptocurrencies, which makes it an easier target for attackers. Dogecoin only has 1,090 nodes while Bitcoin has 10,000 nodes distributed across 97 countries.

The DOGE development team is not as big as those of Bitcoin and Etherium. In addition, there have been no technological updates or changes to DOGE since 2015.

Terra (LUNA), capitalization — 37.5 billion dollars

The Terra project was launched in 2018 in South Korea. It forms a single stablecoin ecosystem.

Blockchain Terra uses in its work:

  • LUNA cryptocurrency — with its help, the platform’s performance is ensured and management is carried out;
  • stablecoins (for example, TerraUSD pegged to the dollar, TerraMNT pegged to the Mongolian tugrik, TerraKRW pegged to the South Korean won) generated by users using LUNA funds.

The purpose of the project was to quickly introduce crypto technologies to the masses and solve the problems of high volatility of crypto assets. Terra-backed stablecoins are pegged to the value of physical currencies, but do not use conventional currency or its equivalents (bonds of large corporations, precious metals or other cryptoassets) as collateral for an asset, as Tether stablecoin does. Instead, Terra generates algorithm-based stablecoins through LUNA conversion. Each user can spend a certain amount of LUNA and get the corresponding amount of stablecoins for this.

More than 15 types of stablecoins have already been issued on the basis of Terra. In 2021, the project went beyond South Korea.

Terra and LUNA stablecoins work in concert with supply and demand: when the price of a stablecoin rises above the value of the pegged currency, users are motivated to burn their LUNA to create more Terra. Likewise, when the value of a coin drops compared to the base currency, it encourages users to burn their Terra stablecoins to mint more LUNA. As the adoption of Terra platforms grows, so does the value of LUNA.

From January 3, 2021, when its price was $0.64, to the beginning of April 2022, Luna is up more than 16,400% to $106.

The advantage of the platform is fast transactions with low fees. Terra Station’s user interface is very user-friendly and easy to use, and mobile applications are also available.

 The main disadvantage is that the currency is still quite difficult to find on crypto exchanges.

Monero (XMR), capitalization – 4.23 billion dollars

Cryptocurrency Monero (XMR) was created on the basis of the ByteCoin token blockchain using the CryptoNote protocol in April 2014. The underlying protocol allows the blockchain to be completely anonymous. Until now, the names of the majority of Monero developers have not been disclosed. Only Ricardo (Fluffypony) Spagni and Francisco Cabanas have announced their involvement in the project.

The anonymity of the coin attracts various offenders. For example, Monero is in high demand among cybercriminals. Ransomware Trends , published by CipherTrace , says that Monero has exploded in popularity with ransomware groups, with payouts to hackers in the first six months of 2021 totaling $590 million, up 42% from 2020 totals.

The advantage of the currency is the high anonymity of transactions. The popularity of Monero has been gradually growing in recent months as more crypto enthusiasts and investors began to worry about the safety of their assets after a number of restrictions were introduced in Europe and the United States.

Monero also has a well-optimized mining algorithm, making it less demanding on hardware.

However, there are risks : in February 2022, it became known that one of the Monero mining pools increased 44% of the hashrate . The crypto community immediately expressed fears that the pool could gain control over the blockchain, and the situation itself is fraught with the collapse of the Monero rate.

“Dark horses” of the crypto market

One of the main features of the crypto market is its high volatility. The number of cryptocurrencies is huge, and the ten most promising can change rapidly.

TradingView Community Manager in Russia Liliya Malikova added Cardano (ADA) to the top 10 cryptocurrencies: “It forms its own blockchain and an entire ecosystem with many opportunities. In other words, such projects are fundamental – on the basis of which new products and other assets are built: for example, the DeFIRE decentralized exchange (CWAP) runs on the Cardano blockchain.

BestChange.ru Senior Analyst Nikita Zuborev also advises taking a closer look at Cardano (ADA) as the most promising project among Ethereum killers. “Although it is still very far from being a leader in the decentralized finance market, the project is interesting from the point of view of a possible prospect for the development of technology.” He also recommends paying attention to atypical blockchain projects or their analogues – for example, although far from new, but an interesting IOTA (MIOTA) project that uses DAG instead of a regular blockchain.

In addition to the cryptocurrencies listed above, cryptocurrencies of HYIP projects and crypto games are very popular in Russia. These include, for example, the STEPN app for tracking daily physical activity. People buy virtual sneakers in the app, walk or run in them and receive cryptocurrency for it. “In Russia they love magic, and therefore all projects where for some period you can get money out of thin air are becoming extremely popular. But such projects are short-lived,” warns Nikita Ponomarev.

Developers will move in the direction related to games and mobile applications, the expert believes. “I am sure that in the near future we will see dozens of new HYIP projects, and the coins of these projects will be in the crypto wallets of Russians,” he says.

When possible bans confuse

Some potential buyers of digital assets are avoiding investing in them, waiting for tighter regulation of cryptocurrencies in Russia. In January 2022, the Central Bank  proposed to ban the issuance and circulation of cryptocurrencies in the country. The regulator stated that the proliferation of digital assets poses significant threats to the well-being of Russian citizens and the stability of the financial system. In addition, cryptocurrency is used to finance criminal activities and tax evasion, said the head of the Central Bank, Elvira Nabiullina.

The Ministry of Finance is more loyal in this matter and believes that the legalization of the circulation of the crypt will increase the collection of taxes. The position of the Ministry of Finance was supported by the Federal Tax Service, proposing to allow companies to conduct foreign trade operations in cryptocurrency.

One of the arguments in the dispute about the prospects for a ban on cryptocurrencies in Russia was the decision of Binance to impose restrictions on Russian users whose assets exceed 10 thousand euros. The owners of these accounts will only be able to withdraw funds, but the functions of replenishing the account and conducting trading will be blocked. Anatoly Aksakov, head of the State Duma Committee on Financial Markets , said that with such news, there are more arguments against the legalization of cryptocurrencies.

Nevertheless, the experts interviewed by Skillbox Media are convinced that investors have nothing to fear, the decision will be balanced, and the regulation of the cryptocurrency market is vital – especially for the crypto world, where, in addition to honest projects, there are financial pyramids and scammers. The most likely way to regulate is likely to be to equate cryptocurrencies with high-risk investment instruments on a par with futures on the stock exchange. “For trading, it will be necessary to obtain a certificate of a qualified investor. Those who do not have such a certificate will be able to buy only a very limited amount, ”explains Nikita Ponomarev.

Investors are pleased that the Ministry of Finance, Rosfinmonitoring, the Ministry of Economic Development and other federal departments opposed the idea of ​​the Central Bank to completely ban cryptocurrencies. “All regulators, except for the Central Bank, believe that the competent use of digital assets will only bring benefits, and risks can be leveled. This speaks of a balanced approach and inspires optimism,” says Dmitry Kudinov, Operations Manager at EMCD.

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