Top 9 Altcoins in 2025

In the last year, the cryptocurrency market has faced a bearish trend, causing popular altcoins to drop over 90% in value. This decline has led to a decreased interest in altcoin investments, a common occurrence of post-cryptocurrency market hype. As the market stabilizes, it presents an opportune time for savvy investors to spot undervalued projects with solid foundations and growth prospects.

In this material, you will learn the origin and general characteristics of altcoins, as well as some of the best altcoins to invest in 2024.

Ethereum (ETH)  

Ethereum is among the best altcoins to invest now showing significant potential. Ethereum, created by Vitalik Buterin in 2015, is a major cryptocurrency for decentralized applications. After The Merge upgrade to Proof-of-Stake in September 2022, ETH holders can stake coins for network support and rewards. Ethereum’s success depends on network adoption, with ETH used for dApps, transaction fees, and rewarding validators.

Cardano (ADA)  

Cardano (ADA) is a major cryptocurrency known for its focus on research and development to address real-world issues. Developed by Charles Hoskinson, it aims to offer fast, secure payments globally. The blockchain platform emphasizes academic rigor, smart contracts, and scalability solutions. Despite facing both support and criticism, ADA has gained a strong following in the cryptocurrency community. It is currently priced at $0.34 with a market capitalization exceeding $12.2 billion.

Litecoin (LTC)  

Litecoin, a significant altcoin, is considered the digital silver to Bitcoin’s gold. Launched in 2011, it aims to be a widely adopted digital currency for savings. With a capped supply of 84 million LTC, around 89.15% is already in circulation. Litecoin’s key advantage over Bitcoin is its faster transaction speed, processing transactions four times quicker. Litecoin (LTC) has kicked off 2024 with a strong 50% growth rate. In March 2024, the CFTC recognized Litecoin as a commodity, boosting investor confidence. Analysts expect LTC to rise to $163 by the end of 2024 and put it among the best altcoins to invest in right now.

Tron (TRX)  

The TRON platform offers tools for developers to create dApps and content, earning rewards. TRON’s popularity maintains its coin’s high value, ranking 10th. Despite market challenges, experts predict a second wave of growth, with Bitcoin potentially reaching $100-110K. TRON’s fast transactions and low fees make it suitable for micropayments. The TRX altcoin is utilized for voting, rewards, and resource payments in decentralized applications like file storage and oracles.

Binance Coin (BNB)  

BNB is Binance’s native token, launched in 2017. It serves as fuel for Binance’s development, allowing payments within the Binance Smart Chain and offering benefits like trading fee discounts and participation in Binance ecosystem products. BNB’s value is influenced by Binance’s growth and its limited supply with a burn program for deflationary effects.

Solana (SOL)  

Solana, a high-performance blockchain since 2017, addresses scalability and transaction speed issues. Predictions suggest Solana’s token value may increase by 30-40% in Q3 2024 due to its performance, low fees, and developer attraction. The ecosystem is expanding with over 450 projects in DeFi, NFTs, and GameFi, boosting SOL demand. Key projects include Serum and Raydium. SOL is used for network transactions, commissions, and ecosystem management through staking.

Dogecoin (DOGE)  

Dogecoin, a meme coin created in 2013, has evolved from a joke cryptocurrency to a fully functional one with its own community. It is based on Litecoin technology with a 1-minute block generation time and is used for micropayments, tips, and donations. Dogecoin experienced significant growth in 2021 due to Elon Musk’s influence and retail traders, reaching a peak price of $0.7.

Polygon (MATIC)  

Polygon (formerly Matic Network) is a platform launched in 2017 to scale and reduce transaction costs on Ethereum and compatible blockchains. It combines autonomous sidechains for high transaction rates, powering over 7000 dApps, metaverse, NFT, and gaming projects. MATIC altcoin serves as gas for Polygon sidechains, covering fees and transactions while rewarding infrastructure maintenance.

XRP (XRP)  

Ripple is a digital technology for online payments launched in 2012 by Jed McCaleb and Chris Larsen. The Ripple blockchain offers fast transactions and high security. XRP coin’s value may increase due to ongoing SEC-Ripple legal issues, potentially rising by 50-70%. Currently ranked 7th among cryptocurrencies, Ripple’s price has risen from $0.48 to $0.60, showing growth potential for investors.

What is an Altcoin?    

Many individuals often mistake cryptocurrency for bitcoin, assuming they are synonymous. To address this, a term was introduced for all cryptocurrencies other than Bitcoin. Altcoins refer to cryptocurrencies developed post-Bitcoin. The initial altcoins emerged in 2011, and today, there are thousands of variations. In contrast to Bitcoin, which is the most renowned and oldest cryptocurrency, altcoins present unique features, technologies, and functionalities.

Different Types of Altcoins  

Altcoins come in several basic types:

• Utility tokens with specific functions include popular cryptocurrencies (ETH, TRX, etc.), crypto exchange tokens (BNB, OKB), gaming tokens (MANA), etc.). This is the most common type.
• Security tokens represent various assets or rights to them in the blockchain (stocks, bonds, copyrights). Examples include ASPD, EXOD, and BCAP.
• Stablecoins are cryptocurrencies with a stable exchange rate, tied to the value of fiat money, gold, and other crypto-assets. Their main task is to serve as a value-preservation tool. Examples: USDT, BUSD, DAI.
• Meme coins are cryptocurrencies created as a joke or meme and often fulfill the role of utilitarian tokens. The best-known are DOGE and SHIB.
• Governance tokens give the right to vote and participate in the management of the project. For example, TRON Power or UNI.

In addition to the above types, altcoins also include forks – cryptocurrencies created by distributing the blockchain of the main coin, for example, bitcoin into new branches. There are two types of forks:

• Soft forks are fully compatible with the old version of the blockchain. Changes to them can be undone.
• Hard forks are incompatible with the old mining software. They create a new altcoin that is incapable of operating on the same network as the original.

A prime example of a fork is Bitcoin Cash, created as a version of Bitcoin for everyday payments. Now its capitalisation is more than $2.3 billion.

Advantages and Disadvantages  

While each altcoin is unique, they all still have certain characteristics in common. 

Pros

Some of these advantages of altcoins over Bitcoins include: 

• Innovation: altcoins usually have technical advantages over Bitcoin, in particular, they offer solutions to problems specific to this cryptocurrency, such as scalability issues or insufficiently fast transaction speeds. 
• Benefit: Each altcoin is conceived with a specific purpose that distinguishes it from the others. Bitcoin’s main goal is to become a digital currency with the features of ‘traditional’ currencies, offering them in a decentralized way, i.e. to act as: 
• medium of exchange;
• unit of account;
• means of saving.

Cons

Among the main disadvantages are highlighted: 

• Liquidity: the liquidity of most altcoins is much lower than that of bitcoin. This is directly related to the market volume of this cryptocurrency. Low liquidity entails higher trading costs, so altcoin pairs tend to have higher spreads than bitcoin pairs. The situation is similar for traditional currency pairs. Major pairs such as USDEUR are more liquid and therefore have tighter spreads than non-major pairs such as GBPJPY or exotic pairs such as EURTRY.
• Longevity: some projects funding altcoins have been abandoned, and as a consequence, altcoins have lost a significant portion of their value. 

In addition, it is important to note that digital currencies are decentralized, meaning that there is no central bank to oversee them, and therefore the risk of investing in this type of asset increases. 

Before investing in cryptocurrencies, remember that past performance is not a reliable indicator of future results. 

FAQ  

Should I prioritize Bitcoin or altcoin investments?  

Now, you should imagine yourself as an alchemist who mixes liquids to receive a unique potion that will make you feel great. Depending on the time you’re reading this, altcoins or BTC (or both) may be on the rise or downfall. In other words, balance your portfolio with BTC and altcoins according to your risk tolerance, consider altcoins to maximize your profits and bitcoin to boost safety.

Are altcoins a worthwhile investment?  

This is a question that many potential investors ponder. The risks involved in buying altcoins are enormous. Altcoins offer a diverse range of features, use cases, and technologies. You can experience both large wins and large losses as well. Some altcoins, like Ethereum, have established themselves as robust platforms with significant market traction, while others are more speculative and carry higher risks. Altcoins offer a unique opportunity for cryptocurrency investors to diversify. Unlike bitcoin, often seen as a store of value, many altcoins, such as ether, Ripple’s XRP, or litecoin, are developed with specific objectives and use cases.

Which are the leading 3 altcoins?  

The cryptocurrency market is dynamic with rankings changing frequently. At the latest update, notable altcoins were: Ethereum (ETH),  Binance Coin (BNB), Cardano (ADA). 

These altcoins stand out for their innovative features and substantial market influence, underscoring their leading positions in cryptocurrency.

What lies ahead for altcoins in the future?

The future outlook for altcoins is dynamic with potential growth and challenges:

• The evolving regulatory landscape requires compliance like KYC and AML;
• Crypto exchanges adapting to regulatory crackdowns may impact altcoin availability;
• Regulatory clarity influences institutional investments in altcoins;
• Market volatility persists due to regulatory developments and technological advancements;
• Altcoin projects focus on technological advancements and industry integration;
• Collaboration and consolidation, which is expected among altcoin projects for navigating regulatory challenges and fostering innovation.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.