As we enter 2023, it seems like there’s some good news for the crypto market. We’re seeing a slight upward trend, and Bitcoin in particular has had some interesting spikes in its price recently. It’s still one of the top players in the market, along with Ethereum, offering stability, security, and investment opportunities. But with Bitcoin approaching the end of its coin-issuing period and Ethereum focusing on blockchain, many new cryptocurrencies are popping up all the time. However, those who invested specifically in Bitcoin might not be too thrilled with the current situation. Unfortunately, the value of Bitcoin has gone down quite a bit, currently sitting around 30,281 USD. And according to some crypto experts, there could be even more of a decrease in its value in the future.
In fact, as of 2023, there are approximately 9,000 cryptocurrencies out there, according to Statista. However, only a handful of them make up almost 90% of the total crypto market and provide actual profitability. The struggles of the crypto space are quite significant, as we saw last year when it lost around $1.4 trillion of its market value, and even more after hitting its all-time high in November 2021.
These are 10 alternatives to Bitcoin
Bitcoin is often seen as the go-to cryptocurrency, being the most popular and having the largest market capitalization. However, there are plenty of other options out there for those looking to diversify their crypto portfolio. Ethereum, Ripple, Ripple, Stellar, Shiba Inu, and others are all strong contenders in the market. With over 22,000 cryptocurrencies available, it can be overwhelming to choose. So, we’ve compiled a list of the top 10 Bitcoin alternatives that you should definitely consider before making your next investment.
1. Ethereum
Ethereum (ETH) is a well-known competitor to Bitcoin in the market. Its creator founded it in 2013 with the aim of providing the same transactional services as Bitcoin while also offering additional features. Users can create smart contracts on the blockchain, develop DAOs and DApps, and even mint NFTs. One interesting thing about Ethereum’s network is that it has an unlimited coin supply.
Ethereum offers several benefits, including decentralization, which means that the network’s design is efficiently distributed among its members, eliminating the need for a central authority to rule over it. It’s also a great choice for businesses because they can quickly deploy their own organizations using SaaS solutions. Additionally, private transactions on Ethereum are encrypted and only shared among organization collaborators. Another advantage is tokenization, which means that anything that has been digitally registered can be tokenized on the network, allowing companies to fractionalize assets.
2. Ripple
Released in 2012, Ripple (XRP) is a few years younger than Bitcoin. Ripple has a limited number of coins that can’t be mined. However, Ripple operates like a blockchain, using multiple nodes to process transactions. It’s one of the fastest and most efficient cryptocurrencies available, with over 100 banks already signed up to use XRP as an infrastructure system.
Here are some reasons why Ripple could be a great alternative to Bitcoin:
- Different validation models: This model involves nodes that authenticate a transaction’s legitimacy through polls. This leads to almost instant confirmations, with the network capable of processing 1,500 transactions per second.
- Different fees: While XRP transactions are charged, they’re less expensive than Bitcoin due to the faster confirmations.
- Different market cap: Compared to Bitcoin’s limited supply of 21 million coins, one billion XRP has been launched and released gradually.
- Different circulation mechanisms: XRP is released through smart contracts, with a maximum of one billion coins per month. Any unused coins are returned to an escrow account.
Finally, Ripple is a sustainable alternative to Bitcoin since it’s 61,000 times more energy-efficient than PoW blockchains.
3. Stellar
Stellar (XLM) is another cryptocurrency that can give Bitcoin a run for its money. It was launched in 2014 and its distributed ledgers are updated every two to five seconds, which allows for faster transactions. What sets Stellar apart is its consensus mechanism called Federated Byzantine Agreement (FBA), which uses a subset of the network to approve and validate transactions. With a processing speed of around 1,000 transactions per second, Stellar is quite impressive.
Here are some of the features that make Stellar a Bitcoin competitor:
- Fast and affordable transactions. Stellar’s protocol enables users to exchange various tokens quickly, making it easier to get transactions approved.
- Reasonable fees. Thanks to the network’s API and SDK, transactions are fast and affordable for investors and businesses alike.
- Scalability. Stellar can handle a high volume of transactions and conversions in just a few seconds, which makes it a highly scalable network.
Although this list has mainly focused on dApp development, one of the primary goals of blockchain technology, especially from a financial perspective, is to provide a faster and less expensive alternative to traditional payment methods.
Stellar’s network offers an average transaction fee of just 0.00001 XLM, which translates to a minuscule $0.00000072 at the current value of $0.0718 per Lumen. This means that users can conduct millions of transactions on the network without worrying about significant fees. In contrast, traditional banks charge much higher fees for each transaction.
Despite its low fees, Stellar’s network has impressive throughput and functionality, capable of processing over 1,000 transactions per second. Additionally, according to a 2022 research report, Stellar’s network has the highest number of transactions per day, completing nearly six times as many transactions daily as Ethereum and over 32 times as many as Bitcoin.
With such impressive data, Stellar’s network could potentially become a mainstream payment solution in the future. If Stellar manages to secure more partnerships in 2023, it could potentially result in a significant gain of 200% or more for investors.
4. Shiba Inu
Shiba Inu is a cryptocurrency that has gained a lot of attention due to its association with the popular internet meme of the same name. Launched in August 2020, Shiba Inu is built on the Ethereum blockchain and operates on a decentralized platform. The cryptocurrency is designed to be a deflationary asset, which means its total supply decreases over time, making it a good candidate for long-term value growth.
One of the notable features of Shiba Inu is its active and engaged community. The Shiba Inu community is known for its passionate and supportive members, who have created a strong following for the cryptocurrency. This community has helped to promote the use and adoption of Shiba Inu, making it a popular choice among cryptocurrency investors.
As of the time of writing, Shiba Inu is trading at $0.00001112 and has a 24-hour trading volume of $172,256,951. These numbers indicate a high level of interest and demand for the cryptocurrency in the market. Despite its relatively low price per token, the high trading volume shows that there is a significant amount of trading activity happening on exchanges.
Overall, Shiba Inu is a cryptocurrency with a unique value proposition and a strong community of supporters. Its deflationary nature and active community make it an attractive choice for investors looking for long-term value growth. However, as with any cryptocurrency investment, it is important to do your own research and understand the risks involved before investing.
5. Polkadot
Polkadot (DOT) is a well-known open-source blockchain technology that is widely recognized for its interoperability feature. Its unique characteristic allows for secure data transfer between different blockchains. The use of parachains is central to the consensus mechanism of Polkadot, and they facilitate communication and interaction between blockchains with ease. There are several key differences between Polkadot and Bitcoin, including:
- Lower transaction fees: Polkadot uses a weighted fee system, which results in lower transaction costs when compared to Bitcoin.
- Verification mechanism: Polkadot uses the PoS system, where validators are selected based on the amount of DOT tokens they hold, unlike Bitcoin, which still uses the PoW consensus mechanism.
- High energy efficiency: Compared to Bitcoin, which is one of the most energy-consuming cryptocurrencies, Polkadot has one of the lowest carbon footprints among PoS mechanisms.
- Blockchain innovation: With the use of the blockchain’s Substrate framework, businesses can connect their chains to Polkadot and benefit from interoperability and security.
- DOT tokens can be used for governance matters or facilitating Polkadot’s consensus mechanism by delegating tokens to the network. Locking up DOT for Bonding is also made for adding new parachains to the network, which is the blockchain’s unique feature.
Polkadot is highly scalable, making it one of the most efficient networks available. It achieves scalability by using a standard set of validators to validate other blockchains and spread transactions across different shards. With its unique set of features, Polkadot is an innovative blockchain technology that provides a range of benefits and possibilities for businesses and individuals alike.
6. Dogecoin
Dogecoin, also known as a “meme coin,” was created in 2013 based on the popular Shiba Inu internet meme. Despite maintaining a low profile for several years, Dogecoin gained attention in 2020 when it was adopted as a payment method by sports teams and even entered the world of cinema by partnering with AMC theaters. This demonstrated the potential for Dogecoin to be used as a mainstream currency beyond its origins.
7. Solana (SOL)
The value of Solana’s SOL coin has seen a significant increase from its recent value of $8 to around $24.61. It has since experienced a slight decline in value. As a result, the token’s value is not entirely stable at this time. Nevertheless, Solana’s SOL remains a strong contender as a Bitcoin alternative, having performed exceptionally well in 2021. The cryptocurrency skyrocketed by more than 11,000% over the course of the year, making it a history-making asset. Although it currently trades below its all-time high of $260 in 2022, Solana has outperformed most other cryptocurrencies, cementing its position among the top 10 Bitcoin alternatives.
8. Avalanche (AVAX)
At the beginning of 2023, Avalanche’s AVAX coin is proving to be more stable than Bitcoin. With a current value of around $18.86, experts predict that the coin has the potential to increase its value by up to 10 times in the long term. One of the significant advantages that Avalanche has over other cryptocurrencies is the speed of its network. Bitcoin and Ethereum, for instance, can process at their respective peaks of 7 and 14 transactions per second (TPS). In contrast, Avalanche’s network can process more than 4,500 TPS, making it faster and more efficient.
Another crucial factor that has contributed to Avalanche’s success is its network’s compatibility with the Ethereum Virtual Machine (EVM), the software developers use to create decentralized applications (dApps). By running the EVM on its blockchain, Avalanche can offer developers access to a familiar tool with lower transaction costs and faster transaction completion than Ethereum.
While Avalanche’s dApp protocol revenue over the past year has been only a fraction of Ethereum’s, if the platform continues to attract developers to its faster and less expensive network, there is potential for a significant increase in value, with a tripling in value in 2023 being a realistic possibility.
9. RobotEra (TARO)
If you’re on the lookout for a new coin, you might want to check out RobotEra’s TARO. Currently on presale, TARO is a metaverse cryptocurrency that you can purchase at an affordable price. With TARO, you can explore RobotEra’s metaverse and take on the role of a robot alongside other robot companions, working to restore the planet Taro through various activities. Not only will you have fun in RobotEra, but you can also win prizes and earn through selling NFTs, staking TARO coins, and more. TARO has been predicted to have a bright future in 2023, so it’s no wonder why it’s considered one of the top alternatives to Bitcoin.
10. Tether
Tether is a stablecoin that was created by individuals who believed that the cryptocurrency market was too unstable and volatile. As a stablecoin, Tether is designed to provide stability in a market that is prone to fluctuations. It is pegged to the US dollar, which means that the value of Tether is directly tied to the value of the dollar. This ensures that the cryptocurrency experiences fewer fluctuations compared to other cryptocurrencies, particularly bitcoin.
Tether’s stability makes it an appealing alternative to bitcoin, which is known for its volatility. While bitcoin’s value can fluctuate wildly in a short period of time, Tether’s value remains relatively stable. This makes it a more attractive option for individuals who are looking for a cryptocurrency that they can use as a store of value or for everyday transactions. Overall, Tether’s stability and reliability make it a strong contender as an alternative to bitcoin.
Wrapping up
Bitcoin is undoubtedly one of the most popular cryptocurrencies in existence. However, the high transaction fees and low sustainability have prompted investors to consider other alternatives. It’s crucial to note that the instability of Bitcoin does not imply the end of crypto investing. Instead, investors have shifted their attention to other cryptocurrencies that offer better stability and returns. This article highlights some of the best alternatives, with a particular focus on those that are currently on presale and have promising predictions for the future.
The content presented in this article represents the author/advertisers’ personal viewpoint and is not intended as investment advice. It is for educational purposes only. Before investing, individuals should conduct their own research and seek guidance from financial advisors. Analytics Insight and its team are not responsible for any investment opinions expressed in the article.
