As has become a common theme in recent years, cryptocurrencies were practically unstoppable in 2021. The aggregate value of all digital currencies ended the year around $2.2 trillion, marking a near-tripling in 12 months.
The reason investors are so excited about cryptocurrencies is the potential utility of the blockchain technology that underlies them. The financial application of blockchain could revolutionize the way money is sent from Point A to B. Meanwhile, nonfinancial uses could impact everything from paper trails to supply chains.
But in order for blockchain to become mainstream in a financial and/or nonfinancial sense, it has to be scalable. In other words, it has to be built in such a way that a large number of transactions can be handled per second without compromising the effectiveness or security of the network.
Image source: Getty Images.
The "Big Two" of crypto, Bitcoin (BTC 0.16%) and Ethereum (ETH 0.15%), currently lack this scalability, and are respectively capable of a modest seven transactions per second (TPS) and 13 TPS. However, the following five cryptocurrencies are some of the fastest-scaling networks on the planet.
Solana
In terms of scalability, one of the most-promising cryptocurrencies is Solana (SOL -1.34%). According to its development team, Solana is capable of up to 50,000 TPS. That's a more-than-7,100-fold improvement over Bitcoin. To offer some context, payment processor Visacan handle around 24,000 TPS.
The secret sauce that's helped Solana scale its network and process transactions so quickly is its proof-of-history consensus protocol. Normally, validators would need to talk to each other to determine how much time has elapsed between events. With Solana's unique proof-of-history protocol, a record for an event is established when it occurs, thusly eliminating this back-and-forth between validators.
Transactions on the Solana ecosystem also happen to be incredibly inexpensive (about $0.00025 per transaction). This means it takes about 4,000 transactions before a user would rack up $1 in fees. This scalability, speed, and affordability is precisely why more than 400 projects, including those focused on decentralized finance (DeFi), are currently being developed within Solana's ecosystem.
Image source: Getty Images.
Stellar
In terms of payment-focused networks, Stellar (XLM 0.01%) is capable of rapid scaling, and offers incredibly attractive transaction fees and processing times. According to developers, Stellar is capable of around 3,000 TPS. For a payment network, it blows most digital currencies out of the water.
A typical transaction on Stellar's network goes as follows: A fiat currency is converted to Lumens (XLM, the protocol token of the network), sent to its desired destination, and converted back to a fiat currency of choice. The time elapsed for a payment to validate and settle after a user initiates a payment? Less than five seconds.
Furthermore, the average transaction fee is only 0.00001 XLM. Thus, it would take about 350,000 transactions on the Stellar network before a user would rack up $1 in fees. Compare that to the wire fees a user can be charged to send money with a traditional financial institution, or the up-to-one-week wait time to validate and settle cross-border payments with existing infrastructure.
Image source: Getty Images.
Avalanche
Among large cryptocurrencies, Avalanche (AVAX -0.01%) is one of the most exciting smart contract-based blockchain networks. Smart contracts are the protocols that verify, facilitate, and enforce the negotiation of a contract between two parties.
In terms of scalability, Avalanche claims to be able to handle in excess of 4,500 TPS, all while offering a transactional finality of less than two seconds. Again, to put this into perspective, average transactions for Bitcoin and Ethereum take a respective 60 minutes and six minutes to validate and settle. Avalanche takes under two seconds for the full trip.
What's made Avalanche so intriguing is the compatibility of its smart contract-driven network. It's no secret that decentralized application (dApp) developers have preferred the Ethereum Virtual Machine (EVM) to create dApps on the Ethereum blockchain. The thing is, the EVM is operating on Avalanche's network. Thus, developers can create dApps on Avalanche and enjoy much faster transaction times, considerably lower fees, and no scaling issues.
Image source: Getty Images.
IOTA
A fourth fast-scaling cryptocurrency is IOTA (MIOTA), which can be used for everything from sending data to money. IOTA claims to be able to process "around 1,000" TPS, which is well over 100 times faster than Bitcoin and close to 75 times faster than Ethereum.
What's really interesting about IOTA is that, unlike the other crypto projects on this list, it's not blockchain-based. Rather, its network, known as the "Tangle," is a direct acyclic graph that requires new transactions to confirm at least two previous transactions. If you can imagine a string of connected transactions over time, it would begin to resemble a tangled web (ergo, the "Tangle"). IOTA's developers chose this approach over blockchain to avoid the consensus slowdowns that occasionally plague blockchain networks.
Something else to note is that transactions on the IOTA network are feeless. This means IOTA has an inherent competitive edge over virtually all blockchain networks and traditional payment infrastructure.
Image source: Getty Images.
Cardano
The fifth and final fast-scaling cryptocurrency is Cardano (ADA 1.63%). Back in 2017, Cardano was capable of around 250 TPS. However, with the eventual launch of the Hydra upgrade, which I'll discuss in a moment, theoretical targets of 1,000,000 TPS have been postulated.
Arguably the greatest thing about Cardano is its development team, which has laid out clear steps as to how the network will be improved over time. The Shelley upgrade in the summer of 2020 increased the number of nodes each network participant could run, and ultimately sent the number of daily transactions on the blockchain skyrocketing higher. This was followed by the Goguen update in September 2021. Goguen introduced smart contracts to the network, and opened the door for it to compete with Ethereum over dApp development.
However, the Hydra upgrade, which has no timetable, could really turn heads and raise eyebrows. Hydra would funnel transactions to off-chain staking pools, which are known as Hydra Nodes. The idea here is that moving transactions off the main blockchain ensures the network won't slow down while being rapidly scaled.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool owns and recommends Bitcoin, Ethereum, and Visa. The Motley Fool has a disclosure policy.
FAQs
Cardano (ADA): Cardano (ADA)'s transaction speed is one of its most important features. Cardano can process more than 1,000 transactions per second (TPS), which is comparable to other high-speed Blockchain platforms like EOS and is significantly faster than Bitcoin's transaction speed.
What are the 5 most profitable Cryptocurrencies? ›
The 5 Most Profitable Cryptocurrencies to Invest in
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- XRP: The Future of Decentralised Finance.
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Which crypto will blow up this year? AiDoge could be the next cryptocurrency to explode in 2023. It's a new project that's using AI to help users create inventive new memes with minimal effort. The platform is powered by $Ai, which is available for investors to buy on presale now.
Which coin has best scalability? ›
The following list introduces the ten most scalable blockchains in the crypto market.
- Ethereum 2.0.
- Solana.
- Binance Smart Chain.
- Polygon (formerly known as Matic Network)
- Avalanche.
- Elrond.
- Cardano.
- Algorand.
The 12 Cryptocurrencies With the Most Potential for 10x Growth
- Love Hate Inu (LHINU) – Best Vote-to-Earn Meme Crypto With the Most Potential in 2023.
- DeeLance (DLANCE) – High Potential Crypto Reshaping Web 3.0 Recruitment.
- Ecoterra (ECOTERRA) – Eco-Friendly Crypto Project Likely to Blow up.
Binance Coin – Bet On the House for Consistent Growth
Binance Coin is the native token of the highest trading volume crypto exchange in the world, and is the fastest growing cryptocurrency in terms of its relative performance versus Bitcoin since its inception.
Which coin can give 1000x? ›
DigiToads (TOADS) : The Meme Coin with 1000x potential could outperform Dogecoin (DOGE) in 2023. DigiToads (TOADS) is a new meme coin that has taken advantage of Dogecoin's popularity in crypto. It is also making strides to become the most recognized cryptocurrency on the market by the end of 2023.
What is the next big crypto? ›
In that case, you can redeem yourself by checking out these nine next big cryptos, including AiDoge, RobotEra, yPredict.ai, EcoTerra, DeeLance, Love Hate Inu and more, that should be on your investment radar in 2023.
Which crypto has the best future? ›
- Bitcoin (BTC) Market cap: Over $550 billion. ...
- Ethereum (ETH) Market cap: Over $ 220 billion. ...
- Tether (USDT) Market cap: Over $80 billion. ...
- Binance Coin (BNB) Market cap: Over $50 billion. ...
- XRP (XRP) Market cap: Over $23 billion. ...
- Cardano (ADA) Market cap: Over $13.4 billion. ...
- Solana (SOL) Market cap: Over $8 billion. ...
- Polkadot (DOT)
LHINU, DLANCE, MET, ECOTERRA, and TARO are some of the cryptocurrencies that are expected to post 30x gains by 2024.
Another cryptocurrency that patient investors could watch skyrocket 1,000% or more by 2026 is Algorand (ALGO 0.28%). Algorand is currently the 19th-largest digital currency, with a market value of $10.5 billion.
What crypto will grow the most by 2025? ›
Overall, Ethereum's positioning as the blockchain at the forefront of Web3 development, and the significant demand for its network from thousands of crypto projects, makes it among the most promising cryptos that could 10X by 2025.
What coin will overtake Bitcoin? ›
This price is expected to rise in the on-coming year (2022), with quite a few experts in finance and cryptocurrency believing that ether will overtake bitcoin. Here are a few reasons as to why people believe that Ethereum will overtake bitcoin in the coming future.
What coin has potential to overtake Bitcoin? ›
Litecoin can confirm the legitimacy of the transactions much faster than Litecoin. BTC only has a limit of 21 million, whereas Litecoin has a limit of 84 million coins. Even though its performance has been low, LTC has a great chance in the future.
What is the top 5 crypto coins to invest in? ›
Top 5 Crypto Presales To Invest In Now – May 2023
- DigiToads: A cryptocurrency aimed at all categories of users. ...
- Open Campus: Ramping up educational tools with blockchain. ...
- CoinZix: Crypto trading made easy. ...
- SANGO: CAR's official digital currency. ...
- The Unfettered: A play-to-earn game with spectacular graphics.
Cardano is arguably the most secure blockchain technology. It is also the largest smart contract platform running on proof-of-stake technology.
Which cryptocurrency into hits all time high? ›
Crypto Crime Hit All-Time High of $20.6B in 2022: Chainalysis.
How do I know which crypto will pump? ›
The easiest way to identify a pump and dump scheme is when an unknown coin suddenly rises substantially without a real reason to do so. This can be easily viewed on a coin's price chart. Coincheckup, for example, has set a benchmark of a 5% price increase in less than five minutes as its indicator.
Which coin is best to invest in 2023? ›
Top 10 Cryptocurrencies to Buy in 2023 for Short-Term Investments
- Bitcoin. The list of top cryptocurrencies to invest in cannot start without Bitcoin. ...
- Ethereum. ...
- Polkadot. ...
- Cardano. ...
- Solana. ...
- Tether. ...
- Binance coin. ...
- Ripple's XRP.
Bitcoin (BTC) - $67,549
Bitcoin reached its all-time high price of $67,549 in November of 2021.
Ethereum – Top Crypto to Buy for Long-Term Growth Loved by Web3 Developers. Ethereum is the favorite blockchain for decentralized app (dApp) developers because of its scalability, speed and ease of development, as well as large user base.
What coins are billionaires buying? ›
3 Cryptos Billionaires Are Buying Now
- Bitcoin has always been the go-to crypto for the rich.
- Ethereum is catching on with the wealthy based on its perceived utility and ability to create value through smart contracts.
- Meme coins are drawing attention because of their potential for rapid price increases.
The Three Cryptocurrencies To Make You A Crypto Millionaire: Bitcoin, Ethereum And Big Eyes Coin. In recent years, cryptocurrencies have gained popularity as more investors have turned to them to diversify their portfolios.
What crypto has the most potential to 100x? ›
Undervalued Cryptocurrency Altcoins With 100x Potential: DigiToads, Polygon, And Dogecoin. Here are three undervalued altcoins with 100x potential that you should consider investing in DigiToads, Polygon, and Dogecoin. Cryptocurrencies have become increasingly popular in recent years as a new form of investment.
Which new crypto has potential? ›
TAMA is a new cryptocurrency with the potential to outperform Dogecoin and Shiba Inu during the next bull run with huge utility coming in 2023, including multiple P2E games and augmented reality.
Which crypto will be profitable in 2023? ›
In 2023, however, Love Hate Inu ($LHINU) could be the highest profit crypto considering the increased traction from users and investors. The token has already raised more than $1.3 million USDT in two weeks during its ongoing presale.
What crypto will be worth the most in 2030? ›
Looking at the meme token's explosive history, it is no surprise that TechNewsLeader said dogecoin will be the biggest gainer out of the top 20 cryptocurrencies. The forecaster expects it to race by a staggering 2,867% to $4.34 in 2030.
Which cryptocurrency will be at best in 2030? ›
A portfolio of these cryptocurrencies will likely have millionaire-making potential by 2030.
...
3 Cryptos to Buy to Make a Million Dollars by 2030.
| Ticker | Cryptocurrency | Price |
|---|
| BTC-USD | Bitcoin | $28026.60 |
| BNB-USD | Binance Coin | $311.90 |
| ETH-USD | Ethereum | $1867.91 |
Apr 8, 2023
No one can, however, rule out the impossibility of Cardano ADA tokens reaching $1,000 with the utmost certainty - given the highly unpredictable nature of the crypto markets.
What will crypto be in 2050? ›
Bitcoin price prediction for 2050
According to the calculation, Bitcoin's price could increase to $6,680,000 by 2050 and grow by more than +27,700% over the next 27 years. Bitcoin could become a multi-million dollar asset by 2050.
Ethereum. The second largest crypto by market cap is likely to grow between 2025 and 2030, according to crypto enthusiasts. According to some predictions, Ethereum could reach a worth between US$8,000-$10,000 by then.
Which cryptos will survive 2023? ›
Top 8 Cryptocurrency Investments in 2023
| Cryptocurrency | Price | Market Cap |
|---|
| Bitcoin | $28,412.93 | $550.11 billion |
| Ethereum | $1,839.07 | $221.41 billion |
| Binance Coin (BNB coin) | $333.39 | $51.91 billion |
| Cardano | $0.3881 | $13.51 billion |
4 more rowsElon Musk's acquisition of Twitter has put fresh wind in the sails of dogecoin, the meme cryptocurrency he catapulted to fame. Dogecoin's price doubled after the Tesla tycoon completed the $44 billion deal. It was trading at about $0.07 on Oct. 27 before Musk tweeted "the bird is freed" to announce his ownership.
Which coin will overtake Ethereum? ›
Cardano, Solana, EOS, and Polkadot are some of the most well-known ETH killers. If you're looking for a place to buy ETH killers, CoinSwitch has them available on their platform. So let's examine these Ethereum challengers one-on-one but before that let's get the basics out of the way.
What crypto coins will survive? ›
Bitcoin and Ethereum will survive the crypto winter and thrive in the future, but if you are a risk-tolerant crypto investor looking for a name that's a bit out of left field and higher on the risk spectrum, Fantom would be a good bet to be one of the survivors of the crypto winter because of its long-term perspective, ...
Which crypto coin will explode in future? ›
Top 5 Cryptocurrency to Explode:
yPredict.ai: The AI-Powered Trading Platform. Tron: Decentralized Blockchain for Content Ownership. Avalanche: Decentralized, Scalable, Diverse, Innovative Crypto currency. LIDO DAO: Cryptocurrency Revolution: Lido Staking.
Will Shiba Inu reach $1? ›
Shiba Inu is predicted to reach the $1 mark this year, but whether its price veers in the right direction remains to be seen.
What is the crypto that solves problems? ›
Cardano is known as a third generation cryptocurrency that aims to fix some of the problems faced by both Ethereum and Bitcoin. Its mission is to use blockchain technology to solve real world problems, and it takes a research-driven approach to development.
What are 3 good crypto to invest in? ›
- Bitcoin (BTC) Market cap: $543.4 billion. ...
- Ethereum (ETH) Market cap: $220.4 billion. ...
- Tether (USDT) Market cap: $81.8 billion. ...
- Binance Coin (BNB) Market cap: $50.6 billion. ...
- U.S. Dollar Coin (USDC) Market cap: $30.4 billion. ...
- XRP (XRP) Market cap: $23.9 billion. ...
- Cardano (ADA) Market cap: $13.4 billion. ...
- Dogecoin (DOGE)
6 of the Best Cryptocurrencies to Buy Now
| Cryptocurrency | YTD returns through April 27 |
|---|
| Bitcoin (BTC) | 78.1% |
| Ether (ETH) | 59.5% |
| Avalanche (AVAX) | 62.6% |
| Polygon (MATIC) | 33.5% |
2 more rowsAmong the given options, Ether is considered to be the most flexible cryptocurrency as it allows developers to build decentralized applications on its blockchain platform.
What is the most evenly distributed cryptocurrency? ›
AuroraCoin is a clear winner. They issued an equal amount of coins to all icelanders. They actually verified that the people claiming coins were distinct people, and not scammers.
How fast is Solana transaction? ›
Solana TPS versus other blockchains
| Blockchain | Transactions per second (TPS) |
|---|
| Solana | 65,000 TPS* |
| Polygon | 7,000 TPS* |
| Avalanche | 4,500 TPS* |
| XRP | 1,500 TPS |
4 more rowsMar 2, 2023
Tether (USDT):
In the crypto market, Tether (USDT) is one of the oldest stablecoins. 2014 marked its debut. Tether is also one of the most stable cryptocurrencies and the fourth most valuable cryptocurrency by market capitalization.
What is technically the best crypto? ›
5 Best Crypto to buy for long term:
- yPredict.ai - an AI ecosystem with 10-100x potential in 2023.
- Ethereum - Enables the creation and execution of decentralized apps.
- Cardano - A blockchain with focus on security, scalability, and sustainability.
- Polkadot - A multi-chain network that enables interoperability.
Circulating supply and upper limit
All other things being equal, the scarcer the coin, the more valuable it should be. Bitcoin and bitcoin cash each have an upper limit of 21 million coins, while Litecoin and ripple have expanded maximum supplies of 84 million and 100 billion respectively.
What crypto is not traceable? ›
Is There an Untraceable Cryptocurrency? There are several cryptocurrencies that claim to be completely anonymous and untraceable, such as Monero, Zcash and Bytecoin.
What is the third most powerful cryptocurrency? ›
Binance Coin (BNB)
It is the third-largest cryptocurrency by market capitalization.12 Those who use the token as a means of payment for the exchange can trade at a discount.
Which is faster Solana or Cardano? ›
Compared to the Ethereum platform, both networks have low gas prices and the potential for significant scaling thanks to outstanding and special technological capabilities in Solana's case. For example, Cardano can handle 250 transactions per second (tps), whereas Solana can handle 2,700 tps on average.
Is Solana faster than Cardano? ›
While Solana can provide faster transaction speeds and lower costs than Cardano in many instances, thus far, the Cardano network has proven to be more secure and reliable.
Bitgert team has built the fastest blockchain in the industry, which is faster than the Solana blockchain. Solana has had the fastest blockchain in the industry for the longest time with its 65k TPS. But Bitgert has launched BRC20 blockchain with a throughput of 100k TPS.
