From Altcoins to Mainstream Coins: Do You Really Understand the Hierarchy in the Crypto World?

Getting started in the crypto world, the easiest pitfall to fall into is getting confused by the names of different coins. Terms like stablecoins, mainstream coins, and altcoins all sound like invisible ranking systems in the crypto circle, but in reality, these categories are based on completely different logic. Today, let’s start with the most misunderstood category: altcoins.

Altcoins Are Not Actually “Copycats”

Nowadays, when people hear “altcoin,” their first reaction is often “trash” or “scam.” But in fact, altcoins are cryptocurrencies developed based on blockchain technology that are recognized to a lesser extent than Bitcoin and have lower liquidity. They are genuine projects.

Take Shiba Inu (SHIB) as an example. Before 2021, it was definitely considered an altcoin—cheap price, low market cap. But in just over a year, with the help of various capital and celebrity endorsements, it skyrocketed into the top 10 by market cap, and some even started debating whether it qualifies as an altcoin anymore.

This is also why new “star altcoins” keep emerging—animal coins, NFT concept coins, DeFi altcoins bombarding the market one after another. Each trend brings those projects that haven’t yet gained mainstream recognition to take off. Ultimately, whether a coin is an altcoin or a mainstream coin depends on two factors: market recognition and application value. When recognition is high and liquidity improves, even altcoins can turn into mainstream.

Mainstream Coins Are the Market Barometer

When talking about mainstream coins, it generally refers to the top projects on the crypto market cap list. These coins stay at the top for three main reasons: strong community, large user base, and high market recognition.

Bitcoin (BTC) is undoubtedly the king of mainstream coins. Since its inception in 2009, it has consistently held the number one spot in market cap. There’s a saying in the crypto market: “When Bitcoin rises, all coins follow,” which shows its influence. BTC’s price movements directly determine the market’s overall sentiment and are recognized as a market indicator.

Ethereum (ETH) is the second-largest cryptocurrency by market cap and the foundation of the entire DeFi ecosystem. Its creator, Vitalik Buterin, had a clear vision—upgrade Bitcoin, speed up transactions, and enable smart contracts to support more applications. This ambition firmly established its mainstream status.

Cardano (ADA) is often called the “Japanese Ethereum,” partly because early funding mainly came from Japan, and partly because its founder Charles Hoskinson was a co-founder of Ethereum. As a result, ADA holds a special place in many investors’ hearts.

Ripple (XRP) is backed by the large organization Ripple Labs. Its goal is to become the standard protocol for global interbank settlements, making cross-border transfers as cheap and fast as sending an email. Although it has been embroiled in SEC lawsuits in recent years, as a long-established mainstream coin, its influence remains significant.

Bitcoin Cash (BCH) and Litecoin (LTC) are like relatives of Bitcoin—they were inspired by Bitcoin, use the same proof-of-work mechanism, and are recognized as “veteran” mainstream coins in the industry.

Stablecoins Are the “Safe Haven” for Trading

If mainstream coins and altcoins are competing over “who is more valuable,” stablecoins act as the “peacemaker.” Their core task is simple: provide a relatively stable value anchor, giving investors a stable medium of exchange amid the high volatility of the crypto market.

The essence of stablecoins is “pegging”—usually against fiat currencies like the US dollar or other stable assets. The earliest stablecoin, USDT, was launched by Tether in 2014, promising 1:1 redemption for USD.

For example, if you expect Bitcoin to fall, you can sell BTC and convert it into USDT to protect your assets. When the market adjusts sufficiently, you can buy back BTC with USDT, achieving the goal of “buy low, sell high.”

Stablecoins mainly fall into two categories:

Collateralized Stablecoins—divided into two types: fiat-collateralized (like USDT, USDC, directly backed by USD) and crypto-collateralized (like DAI, backed by ETH).

Algorithmic Stablecoins—do not require actual collateral but maintain price stability through automatic supply adjustments via algorithms, such as UST and AMPL. While this design sounds impressive, it also carries significant risks in practice.

Final Words

From altcoins, mainstream coins, to stablecoins, the entire system is essentially a dynamic ecosystem. Leading mainstream coins may fade over time due to technological stagnation or outdated concepts, while lesser-known altcoins can soar through innovation and market recognition. These shifts ultimately depend on market choices and the true value of the projects themselves.

Therefore, when choosing coins to invest in, rather than blindly chasing trends, it’s better to thoroughly examine the underlying technology, team strength, and application prospects. Only then can you survive longer in the wave of the crypto market.