All you need to know about the tip cryptocurrencies by volume and the overall popularity of this asset class.
Cryptocurrencies have investors fascinated and tremendously excited. The market size for cryptocurrencies is expected to reach $1087.7 million by 2026, according to the website, Tech Jury, which also quoted this mind-boggling statistic: starting 2012, over a relatively short 8 year investment horizon Bitcoin has gained 193,639.36%. No, that's not an error: that really is six-digit growth.
It is actually fairly logical to expect cryptocurrencies to only grow in popularity because of several reasons:
- A very suave public figure and his very famous space tech (and automobiles) company had deliberated accepting payments in cryptocurrency. In fact, a public announcement to that effect was made. The decision was reversed but no publicity is bad publicity in a lot of cases, and Bitcoin has only grown in popularity ever since.
- As the overall market for blockchain expands and hires more and more people, a larger number of investors are likely to grow comfortable with the asset class and will understand the fundamentals of blockchain. This will eliminate the knowledge barrier that might be keeping some investors away.
- Investor education platforms - like the one you are on now - are helping investors understand the need for portfolio diversification. Many investors are likely to choose cryptocurrencies in their portfolio diversification moves.
- There is a government-level openness towards cryptocurrencies and this helps things. China and the Bahamas have both introduced digital currency. El Salvador has begun accepting Bitcoin as legal tender.
- Cryptocurrency is the cool new thing, like intermittent fasting, lactose-free milk and zoodles (gluten-free zucchini noodles).
In India too, the interest in and uptake for cryptocurrency investment has grown tremendously. Let's have a look at India's top 10 cryptocurrencies in October, by trading volume:
# 10 Solana
Solana has a smart model with dozens of dozens of apps weaved into its blockchain meaning that the app users to0 want its tokens, in addition to investors.
Solana value: Rs 16,637.81. The price has actually touched Rs 19,000 a few days ago.
# 9 Cardano
Cardano is a eco friendly cryptocurrency and is therefore popular among conscious investors. You might not know this but all the data mining involved in cryptocurrency makes it an energy intensive proposition. Cardano manages with much less energy than early movers like Bitcoin.
Cardano value: Rs 166. Earlier this year, in August the price has crossed Rs 215.
# 8 Polygon
This cryptocurrency allows users to attempt to gain from several blockchains. It is a mid priced cryptocurrency and this is probably why it made it to India's top 10 cryptocurrencies in October.
Polygon value: Rs 125. In May this year, the price had touched about Rs 160.
# 7 Tron
Tron is popular not only among investors but also appeals to everyone who enjoys being entertained (which is literally everyone) by streaming apps and the like.
Tron value: Rs 8.02. The price had increased drastically to Rs 14 in January this year and to about Rs 12 in April this year.
# 6 Dogecoin
This one is a favourite of the suave public figure (with a space focussed company and automobiles) that we talked about at the start of this article.
It is also pretty affordable and therefore has potential for investors only starting to dabble with cryptocurrency.
Dogecoin value: Rs 18.99. The currency had spiked to Rs 48 around April this year and one of its most recent lows was about Rs 17.
# 5 WazirX
If your first thought was "But WazirX is a cryptocurrency exchange," you certainly know your basics. Well done! WazirX has managed to carve a niche for itself by bridging a market gap. When one wants to buy cryptocurrency with cryptocurrency and the necessary pair is not available, investors can use their WazirX tokens.
WazirX value: Rs 122 with a previous high of Rs 304 in April this year. Its most recent low was Rs 77 in September.
# 4 Ethereum
Although it stands fourth on India's top 10 cryptocurrencies for October, this is one of the world's most highly priced cryptocurrencies, second only to the market leader.
Ethereum value: Rs 3,39,445.41. Its lowest point was in January this year at about Rs 5,30,000 and this is the highest point year-to-date. In May this year, it came somewhat close at about Rs 3,06,000.
#3 Shiba Inu
This cryptocurrency has good publicity on its side with a cute logo that went viral and also because of a huge donation made to the country's pandemic relief efforts.
It is also one of the most affordable cryptocurrencies around and is therefore popular with investors looking to get a feel of cryptocurrency investments.
Shiba Inu value: Rs 0.004007 (yes indeed)
# 2 Tether USDT
This cryptocurrency is tied to a fiat currency, namely the US dollar. Because of being tethered and it is, some investors say it shouldn't actually qualify as a cryptocurrency. However, other investors call it a gateway cryptocurrency that investors can use to understand and get used to the asset class. Thereafter they can use their Tether tokens to go on and invest in more volatile cryptocurrencies.
Tether value: Rs 82.15
The cryptocurrency had been pretty stable at this value, reaching a peak of Rs 137 around May 2021 and a trough of Rs 63 in January 2021.
And the winner is…(no surprises here)!
# 1 Bitcoin
Bitcoin is not only one of the top 10 cryptocurrencies in October but also stands among the top 10 cryptocurrency options in 2021.
It is the market leader at the moment, comprising nearly half the market capitalisation of the whole cryptocurrencies market.
Bitcoin was the first among all the cryptocurrencies to be launched, way back in 2009.
Bitcoin value: Rs 47,36,003.65
The cryptocurrency had tanked to about Rs 23,00,000 in July and had reached a similar high of about Rs 47,00,000 in April this year.
Conclusion: Cryptocurrency is volatile but could potentially deliver good earnings. You must practice risk mitigation while investing.
Disclaimer: Angel One Limited does not endorse investment and trade in crypto currencies. This article is only for education and information purposes. Discuss with your investment advisor before making such risky calls.