Cryptocurrencies are not homogenous at all, and different cryptocurrencies have different capabilities. Bitcoins, for example, can be used to store value and as a hedge against inflation, while Cardano is used as a platform to develop Decentralized apps used across different industries. Similar to the variety in the utility these cryptocurrencies find, they differ with respect to the total number of coins that can be mined in total. Some cryptocurrencies do not have an upper limit on the number of coins that can be created, while some have a fixed upper cap, which cannot be crossed at all. It is the rarity of coins with a limited supply that makes investors feel the urgency to buy them. This consequently has led to exponential growth in the prices of limited supply cryptocurrencies. Let us discuss these limited supply cryptocurrencies and understand which ones are the most profitable. Most people associate Bitcoin trading with purchasing this cryptocurrency on a cryptocurrency exchange, such as the bitcoin system website .
- BTC (Bitcoin) is the most valuable amongst all limited supply cryptocurrencies, as well as all cryptocurrencies in the market. Owing to the advantages offered by Bitcoin, it has started replacing fiat currencies, and countries such as El Salvador are identifying it as legal tender. The upper cap on the total number of Bitcoins that can exist in the market stands at 21 million coins. Although the number of coins is approaching the upper limit, the increasing mining difficulty makes it harder to mine more bitcoins, and it is predicted that Bitcoin will reach its peak only in 2140. The market cap has been predicted to be around 925 billion dollars at this moment, which establishes its position as the top-performing cryptocurrency that you can invest in. BTC is the most popular and easily available cryptocurrency that can be bought.
- The Binance Coin or BNB is the second one on the list and is available on Binance, which is the world’s largest crypto exchange platform. This coin was introduced in 2017 as an ICO, and the total supply of this coin was set at 200,000,000. Eventual coin burns have been observed, and the supply of BNB has been observed to fall. The market cap for BNB has been observed to be around $75 billion as of now. This cryptocurrency has faced major crackdowns from countries like China. However, the impact of these crackdowns on the value of this cryptocurrency has been observed to be minimal on the value of BNB, which gives it a well-deserved second spot on the list.
- Cardano (ADA): It is one of the most useful cryptocurrencies in the market. Cardano was launched in 2017 as a crypto platform, and the coupon native to it is the ADA. Cardano works on the proof-of-stake model, which has been observed to be more efficient than the proof-of-work model. The total supply of Cardano’s ADA is around 45 million coins, and 33 million of them are already circulating in the market. The total market cap of ADA was observed to be around USD 70 billion. Thus, Cardano can be counted among the top cryptocurrencies with a limited supply.
- Ripple (XRP) runs on a blockchain payment network called Ripple. XRP is the coin native to the platform, and it focuses on facilitating faster and cheaper money transfers across the world. The maximum supply stands at around 100 million coins, and it comes with many interesting features. The market cap of Ripple (XRP) stands just over USD 48 billion, and it deserves mention on the list of the top cryptocurrencies with a limited supply, owing to the utility it finds.
- Avalanche (AVAX) is another crypto exchange that allows the development of decentralized apps. Some projects that are native to the Ethereum blockchain seem to work just fine on this platform as well. The maximum number of AVAX coins that can be supplied to the market stands around 720 million, and 391 million were found to be in supply in October 2021. The total market cap of AVAX is around USD 14.3 billion.
Thus, it can be stated that there are cryptocurrencies that vary in respect to their utility and their supply in the market as well. There are cryptocurrencies that have an upper cap on the number of coins that can be supplied in the market, which experience increasing rarity and value within the market. Some of the best-limited supply cryptocurrencies include Bitcoin, the BNB, ADA, XRP, and AVAX. Although these currencies are rare, they still face volatility in the market, and one should research their choices carefully before investing in one of them.
Read More:Top Cryptocurrencies with a limited supply – The Dubrovnik Times