What Are the Most Traded Cryptocurrencies?

The cryptocurrency landscape is hugely diverse. With few barriers to overcome, pretty much anyone who understands blockchain technology can launch their own cryptocurrency if they are so inclined. There are currently more than 1600 cryptocurrencies listed on major, middle-sized, and specialist exchanges.

TL;DR

• Diverse Cryptocurrency Landscape: Over 1,600 cryptocurrencies exist, though only 20--30 have significant liquidity or real-world use cases, with Bitcoin and Ethereum leading the market.
• Emerging Players: Coins like Cardano, Solana, and Binance Coin have gained prominence, alongside niche platforms like Avalanche, Polkadot, and Chainlink.
• Utility and Trading: Cryptocurrencies such as Ripple XRP, VeChain, and Uniswap serve specific functions, while platforms like the Crypto 10 Index simplify exposure to top-performing assets.
• Trading CFDs on Plus500: Plus500 offers CFDs on leading cryptocurrency pairs, crypto cross-pairs, and the Crypto 10 Index, making it accessible for those interested in dynamic crypto markets.

Of those cryptocurrencies and digital tokens, the number that has any genuine significance can be reduced to double figures. That smaller group can be boiled down again to the cryptocurrencies that are traded enough to have real liquidity or are regularly used to pay for the use of a blockchain platform with utility tokens. Included in this category are between 20 to 30 different digital currencies.

Since the start of the cryptocurrency phenomenon, the two most popular cryptos have been Bitcoin (BTC) and Ethereum (ETH). While Ether and Bitcoin remain the top two contenders in the crypto sphere, other cryptocurrencies have managed to make the par. In recent years, cryptocurrencies like Cardano (ADA) and Solana (SOL) have followed the footsteps of Bitcoin and Ether and have made it to the top ten most valuable cryptocurrencies by market cap.

Beyond Bitcoin, Ethereum, Cardano, and Solana, there are several more popular cryptocurrencies like Axie Infinity (AXS), Filecoin (FIL), and Uniswap (UNIUSD) but their value and popularity tend to ebb and flow. Moreover, if traders want to get exposure to more than one type of cryptocurrency, the uniquely created Crypto 10 Index, which tracks the most popular cryptocurrencies at any particular point in time, can also be traded.

What Are the Most Popular Cryptocurrencies Among Traders?

The immense number of cryptocurrencies available on the crypto market is rapidly increasing. This, in turn, can make it harder for investors and traders to keep up with the most popular cryptocurrencies out there. It becomes a bit of a hassle to choose which cryptocurrencies are 'worth' trading and investing in. Nonetheless, one way to ascertain which are the most traded cryptocurrencies is to look at those offered as CFDs on mainstream trading platforms such as Plus500. Below are the cryptocurrencies that Plus500 traders are most interested in.

Illustrative prices.

Some of the most popular cryptocurrencies on the market today are:

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano
• Solana
• Litecoin
• Binance Coin
• Avalanche
• TRON
• VeChain
• Polkadot
• Polygon
• Axie Infinity
• Stellar
• NEO
• EOS
• IOTA
• Filecoin
• Chainlink
• Uniswap
• Toncoin
• Ripple XRP

They are all quite different, so let's take a quick look at their key qualities:

Bitcoin

Bitcoin (BTC) is considered the original crypto, and its launch in 2009 started the whole cryptocurrency movement. Bitcoin and the blockchain technology on which it operates were invented by an individual or group of individuals operating under the pseudonym Satoshi Nakamoto. Bitcoin was put forward as an alternative to the fiat monetary system. The true identity of Satoshi Nakamoto has never been revealed.

In the Bitcoin whitepaper, Nakamoto argued that a fiat monetary system controlled by central banks and a small number of financial institutions led to centralised wealth and power and made social and financial mobility difficult. Ordinary people's savings were eroded through inflation, largely due to central banks' money printing.

Bitcoin solved that problem by fixing the number of units ever issued, thereby preventing inflation caused by money printing. Bitcoin's peer-to-peer blockchain technology meant it didn't need financial institutions to facilitate transactions and verify ownership.

Trading Bitcoin is still by far the most popular in the crypto market, and Bitcoin's price movement has a strong impact on the rest of the crypto market.

Ethereum (Ether)

Ethereum (ETH) is historically the second most popular cryptocurrency however, it is very different from Bitcoin. Ethereum is the name of the blockchain platform, and Ether is the name of the cryptocurrency. Ethereum is the blockchain platform for 'smart contracts'.

They can also be considered as defined 'rules' from which many different applications, or Dapps -- decentralized applications - can be created. Ethereum dApps range from games to Initial Coin Offerings (ICOs), which are the cryptocurrency world's equivalent to crowdfunding or IPOs.

While other smart contract platforms have been launched since Ethereum, each claiming to offer more sophisticated blockchain technology, the original blockchain has retained its position as the most utilized.

While Bitcoin is intended as an alternative to traditional fiat currencies, the purpose of Ether (besides being traded as an asset) is to pay for the use of the Ethereum platform. It's known as a 'utility' cryptocurrency.

Ripple XRP

Ripple XRP is another 'utility' coin. Its blockchain platform is set up to facilitate cross-border transfers of fiat currency more efficiently. Closely connected to and supported by a number of banks from its beginning, Ripple XRP is often regarded as the 'establishment' cryptocurrency.

The number of transfer services using Ripple's platform has gradually grown over the years and there is a genuine possibility that it will become part of the traditional financial system.

Cardano

Cardano (ADA) coin is a native digital currency used to run the Cardano blockchain which was launched in 2017 by Charles Hokinson, co-founder of Ethereum. Cardano was launched as a third-generation "proof-of-stake" (PoS) blockchain platform and it is valued at $40.4B (as of March 2022). As this decentralized system uses PoS, Cardano (ADA) owners validate transactions on the Cardano network in exchange for rewards, which is called "staking". While both the Ethereum and the Cardano platforms use Smart Contracts and other similar technologies, Cardano is considered a more updated version or a replacement for Ethereum.

Solana

This coin is used to operate the Solana blockchain which was developed by former Qualcomm executive, Anatoly Yakovenko in 2017 and is regarded as a permissionless layer-1 blockchain. While keeping costs low, this third-generation blockchain aims to give users the benefit of increased throughput beyond the typical capabilities of other popular blockchains. It uses an advanced version of proof-of-stake (PoS) called proof-of-history (PoH). Moreover, Solana's architecture supports a range of DeFi platforms and NFTs marketplaces along with smart contracts and decentralised applications (DApps). As of March 2022, Solana's (SOL) market capitalisation is valued at $37.4 B.

Litecoin

Litecoin emerged in 2011 and is considered a potential fiat alternative and a prominent rival for Bitcoin. Its creator, former Google engineer Charles "Charlie" Lee hoped that Litecoin would eventually be used to pay for everyday goods and services. Litecoin has positioned itself as a more practical and technologically superior alternative to Bitcoin, as Litecoin's transactions can be confirmed by the P2P network significantly quicker than Bitcoin transactions.

In theory, this could make Litecoin more attractive for merchants, but with 'real-life' cryptocurrency transactions still hugely limited, Bitcoin's more established 'brand' keeps it well out in front as the fiat alternative cryptocurrency of choice. Nevertheless, Litecoin's staggering market capitalisation of 9.279B (as of March 2022), shows its popularity.

Binance Coin

Binance Coin (BNB) is the cryptocurrency associated with one of the largest exchanges on the crypto market, Binance. After first being created as a token within the Ethereum ecosystem, it later migrated to Binance's proprietary blockchain. BNB coin's purpose was to streamline transactions on the Binance platform, offering users lower trading costs if they used the token.

The coin's supply decreases over time through regular "coin burns," where Binance repurchases and destroys tokens to help sustain value. Beyond transaction fees, BNB has diverse applications, including payments, staking, and participation in Initial Coin Offerings (ICOs). It powers Binance's ecosystem, supporting services like Binance DEX and Binance Launchpad, making it an essential utility token for the platform's operations.

Avalanche

Avalanche (AVAXUSD) is a major player in the ever-expanding blockchain space. This platform is known for its facilitation of DeFi applications, and is also capable of finalising transactions in less than a second, cementing its reputation among the fastest of blockchains. Its architecture is powered by three interlocking blockchains: the Exchange Chain (X-Chain) for asset creation, the Contract Chain (C-Chain) for smart contracts, and the Platform Chain (P-Chain) for management and validator coordination.

The native token, AVAX, plays a central role in the ecosystem, functioning as a means of payment, a staking token for governance, and a tool for network security. While the supply of AVAX is limited, its community of users trading AVAX collectively decide when the supply is capped. As of 2024, there are 400 million AVAX tokens on the market.

TRON

TRON (TRXUSD) is a blockchain platform focused on decentralised content sharing and smart contracts. Founded in 2014 by Justin Sun and operated by the TRON Foundation since 2017, it transitioned from an Ethereum-based token, much as did Avalanche, to its own blockchain in 2018. TRON enables fast, cost-efficient transactions with a three-layer architecture: storage, core, and application.

Known for its high transaction speeds and negligible fees, it supports decentralised apps and peer-to-peer file sharing. The network also facilitates virtual machines for executing smart contracts. However, TRON has faced criticism over allegations of plagiarism and security vulnerabilities, including potential denial-of-service risks. Despite controversies, it remains a notable blockchain for fostering decentralised applications and digital content sharing, and as such is a major player in the cryptocurrency space.

VeChain

VeChain is a smart contract platform especially geared toward the needs of various enterprises, designed to streamline supply chain management and support Web3 development. It operates with two tokens: VeChain Token (VETUSD), which facilitates value transfer, and VeChainThor Energy (VTHO), used as "gas" for transactions on the network. Initially focused on enhancing transparency and efficiency in supply chains, VeChain has expanded into areas like decentralised applications (dApps), Internet of Things (IoT) integration, and sustainability initiatives. VeChain's expansion has been accompanied by partnerships with traditional firms like Renault and PwC, and it is known for the versatility of its proof-of-authority consensus mechanism.

Polkadot

Polkadot (DOTUSD) is an innovative blockchain platform designed to support the development of decentralised applications (dApps) and enhance interoperability among various blockchain networks. Founded by Gavin Wood, an Ethereum co-founder, and Peter Czaban, Polkadot uses a unique architecture of parachains---customisable, independent blockchains---and a relay chain that ensures security and consensus. The network leverages a nominated proof-of-stake (PoS) mechanism and enables seamless data and token transfers across chains, laying the foundation for Web3. The DOT token plays a vital role in governance, staking, and bonding. Polkadot aims to address scalability, security, and decentralisation challenges within blockchain ecosystems.

Polygon

Polygon, previously known as the Matic Network, is a blockchain platform designed to scale and connect Ethereum-compatible networks. Operating as a "layer two" or sidechain, Polygon enhances Ethereum's capabilities without modifying its core. It aims to reduce congestion on the Ethereum network, offering faster transactions, lower fees, and improved scalability. The network uses its native token, POL (POLUSD), following an upgrade from MATIC in September 2024. POL facilitates governance, transaction fees, and staking, empowering users and developers within Polygon's ecosystem.

Axie Infinity

Axie Infinity is a blockchain-based game that combines cryptocurrency, NFTs, and gaming in a play-to-earn model. Players collect, breed, and battle digital creatures called Axies, each of which is a unique non-fungible token (NFT). The game uses two primary cryptocurrencies: Axie Infinity Shards (AXSUSD) and Small Love Potions (SLP), which can be traded on platforms like Uniswap. AXS is the main token for in-game activities such as staking, voting, and playing. Axie Infinity's player base has continued to grow in recent years, solidifying its dedicated token's place in the overall cryptocurrency sphere.

Stellar

Stellar is a decentralised blockchain platform designed to facilitate fast, low-cost transfers of digital assets between banks, payment systems, and individuals. Launched in 2014, it has grown through key partnerships with organisations like IBM and Deloitte. Stellar's native cryptocurrency, Lumen (XLMUSD), is essential for transaction processing within the network, as each account must hold a small amount of XLM. The Stellar network operates using the Stellar Consensus Protocol (SCP), offering energy-efficient and secure transactions that can be completed in under five seconds.

EOS

EOS (EOSUSD) is a blockchain platform designed to support decentralised applications (dApps) with high speed, scalability, and efficiency. It uses a Delegated Proof of Stake (DPoS) consensus mechanism, ensuring fast and secure transactions. Launched in 2017 by Block.one, EOS conducted one of the largest initial coin offerings in crypto history, raising $4.2 billion. The platform offers a developer-friendly environment, addressing the limitations of traditional blockchains like Ethereum.

Filecoin

Filecoin (FILUSD) is a decentralised cryptocurrency designed to revolutionise data storage and retrieval. Unlike traditional cloud storage reliant on central servers, Filecoin leverages a global network of miners who offer unused storage capacity, earning FIL tokens in return. This innovative system provides secure, censorship-resistant, and cost-effective alternatives to centralised solutions like AWS. Operating alongside the Interplanetary File System (IPFS), Filecoin incentivises miners to maintain data integrity while creating an open marketplace for users. Its applications span blockchain and decentralised app (dApp) ecosystems, ensuring efficient content delivery and secure storage.

Chainlink

Chainlink is a system that helps blockchains connect to real-world data and services in a secure way. It was launched in 2019 and is designed to bring outside information, like weather reports or stock prices, onto blockchains so they can be used in smart contracts---agreements that automatically execute when conditions are met.

Chainlink's digital currency, called LINK (LINKUSD), is used to pay people who run the system and provide this data. The network can also handle tasks like creating random numbers for games and combining blockchain technology with off-chain services.

Uniswap

Uniswap is a popular decentralised cryptocurrency exchange that enables users to trade tokens directly with each other without needing a central authority. Operating on the Ethereum blockchain, it uses smart contracts to create liquidity pools that facilitate smooth and automated token exchanges. Unlike traditional exchanges, Uniswap relies on an automated market-making system, allowing users to trade directly from their wallets.

Launched in November 2018 by Hayden Adams, a former engineer, Uniswap has become one of the largest decentralised exchanges in terms of trading volume. Its native token, UNI (UNIUSD), allows users to participate in the platform's governance, although it is not required for trading. With its innovative model, Uniswap has played a key role in the rise of decentralised finance.

Toncoin

Toncoin (TONUSD) is the native cryptocurrency of The Open Network (TON), a decentralised blockchain initially developed by Telegram. Now independently operated, TON is designed for high-speed and secure transactions, capable of processing millions of transactions per second. Its multi-level sharding technology ensures scalability, while Byzantine Fault Tolerance (BFT) enhances security and reliability.

Toncoin supports activities such as transaction fees, staking to secure the network, and powering decentralised applications within the TON ecosystem. Using a Proof-of-Stake (PoS) model, validators stake $TON tokens to maintain network integrity and earn rewards, while users can stake their tokens for returns.

Trading Cryptocurrency CFDs With Plus500

Anyone interested in getting involved in the dynamic cryptocurrency market by trading Contracts for Difference (CFDs) on the most popular cryptocurrencies on the market can do so using Plus500's CFD trading platform. All leading cryptocurrency-to-dollar pairs are available on the platform, as are crypto cross pairs and the popular Crypto 10 Index.

Now that you've deepened your knowledge of the crypto market, you can start trading the most traded crypto CFDs with Plus500.