When you compare the cryptocurrency market to stock and other investments, the market value of cryptos seems to be outshining all its competitors despite its volatility. Perhaps more Aussies are looking at cryptocurrency as an alternative avenue to grow their financial portfolios.
A glance at last year’s performance of some digital currencies like Bitcoin and Ethereum reveals that the market has unlimited growth potential. For instance, Bitcoin (BTC) reached $68,000 USD per piece in a short span and dropped to $35,000 USD almost immediately. Such results spark the interest of many investors in Australia hoping to take advantage of the digital assets arena.
However, the cryptocurrency market experiences high volatility, and you might be risking your portfolio by investing without research. Research will help you pick instruments with higher market capitalisation since there’s an influx of cryptocurrencies in the market to choose from. If you’re unsure where to start, you can discover more here.
Below are seven top-performing cryptocurrencies in Australia according to their market value.
1. Bitcoin (BTC)
For over a decade, Bitcoin has been the leading cryptocurrency in digital assets, with a market cap of $734.06bn USD as of May 2022. BTC pivots blockchain technology supporting peer-to-peer transactions by sidelining intermediaries and regulators such as banks and governments.
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The price fluctuation on Bitcoin rides on sparsity, and only 21 million BTC will ever exist. You can enjoy investing and trading Bitcoin since it’s a decentralised, open-source digital currency.
2. Ethereum (ETH)
Ranked second in the top cryptocurrencies list, Ethereum is also a decentralised digital asset that deals primarily with smart contracts. ETH has a market cap of $340.85bn USD as of May 2022, and works through an application program resistant to manipulation and third-party involvement.
ETH smart contracts are supported by blockchains, and the underlying technology allows users to create markets, execute contracts following predetermined conditions, and transfer funds.
Ethereum aims for the top spot and has grabbed the attention of investors by introducing tokens. In addition, ETH is looking to move toward environmental conservation, hoping to drastically reduce carbon emissions and cut energy consumption within the network.
3. Tether (USDT)
Tether is a stablecoin that’s equivalent to the value of the US Dollar. The digital currency is aimed at connecting fiat money with cryptocurrencies with minimal transaction fees. At the start of May 2022, the USDT market value stands at $83.16bn USD, and there is a circulation of a similar amount in the digital currency market. This means you can exchange one USD for an equivalent Tether in value.
Tether’s growth in the cryptocurrency market was affected by legal issues encountered between Bitfinex and the Attorney General’s office in New York in February 2021.
4. Binance Coin (BNB)
Coming in fourth in the list of top cryptocurrencies in Australia, Binance Coin debuted in 2017 but was initially based on the Ethereum ERC-20 token. Binance coin has a market cap of $63.72bn USD as of May 2022.
The Binance Chain is the underlying blockchain that supports the BNB crypto token. It allows users within the platform to transact using the Binance coin as a utility token. Such innovations attract more users as Binance offers exchange options in the crypto market.
5. USD Coin (USDC)
USDC is a promising stablecoin with a market cap of $49.30bn USD, as of May 2022. The coin is increasingly popular in the cryptocurrency space and appeals to more and more investors in Australia. USDC runs on ERC-20 tokenisation standards, and it’s up against the value of the US Dollar in all exchanges.
The primary aim of USD coins is to ensure a smooth transfer of currencies from digital wallets to exchanges across the globe. It takes advantage of the crypto centre to support secure transfers within the crypto markets.
6. Ripple (XRP)
The developers of Ripple had an eye on fast cross-border payments at a small fee. XRP is an ideal fund transfer channel for enterprises looking to streamline international funds settlement without intermediaries.
Currently, the market value of XRP is $29.24bn USD as of May 2022, and it has significant potential to grow. Many banks and financial institutions are keen to incorporate Ripple in their services to customers, which should drive the cryptocurrency’s growth.
7. Cardano (ADA)
Cardano is an open-source platform for validating cryptocurrency transactions through its Ouroboros proof-of-stake protocol. Additionally, ADA is a cost-efficient blockchain, attending to high energy costs.
Cardano rivals Ethereum by offering smart contracts in its list of services, and through safeguarding procedures to protect users’ trading activities. ADA is a combination of distributed ledger systems, mechanism development and cryptography. As of May 2022, its market value stands at $26.68bn USD, and there’s potential to grow in the cryptocurrency arena.
The cryptocurrency market is forever growing since more coins and tokens are being introduced every year. More Australians are jumping in to leverage the digital assets and grow their portfolio base. So far, Bitcoin tops the list of the best performing cryptocurrencies in Australia, following the market capitalisation charts. However, always be cautious when entering the cryptocurrency market, as it is speculative and experiences high volatility.