Cryptocurrencies, such as Bitcoin and Ethereum, are digital currencies that use cryptography for security. They operate independently of a central bank or government. The price of a cryptocurrency is determined by supply and demand on various online exchanges. Additionally, their starting price is set by the creators based on the initial supply of the cryptocurrency. While Bitcoin is currently priced at around $20,000, other cryptos are priced at pennies. In this article, we go over the top 5 most expensive cryptos (excluding wrapped and staked tokens). Think you can afford to buy one of these?
How are Cryptos Priced?
The initial price of cryptos is usually set by the team behind the cryptocurrency during its initial coin offering (ICO) or initial exchange offering (IEO). The price may also be influenced by factors such as the total supply of the cryptocurrency, the technology behind the cryptocurrency, the perceived utility of the coin, and the overall market conditions.
Ultimately, however, the price of a cryptocurrency is determined by the actions of buyers and sellers on the open market based on supply and demand.
Top 5 Most Expensive Cryptos
#5 Maker (MKR)
MKR is the governance token of the MakerDAO (DAI) protocol. All holders have the right to vote on the protocol’s parameters and upgrades, and are incentivized to act in the best interest of the ecosystem as the value of MKR is closely tied to the performance of DAI.
MKR holders can also earn a return on their investment by participating in a process called “stability fee” which is a fee paid by CDP holders to redeem their DAI and collateral. The stability fee is determined by a vote of MKR holders, and the funds collected from the stability fee are used to buy and burn MKR tokens, which in turn helps maintain the value of the MKR token.
Current Price: $708
#4 Ethereum (ETH)
Smart contracts are programs that execute exactly as they are planned without the risk of delay, censorship, fraud, or outside influence. Ethereum is a decentralized, open-source blockchain platform that supports smart contracts. These smart contracts are created using the high-level programming language Solidity, which is then translated into bytecode that can be run on the Ethereum Virtual Machine (EVM), a runtime environment that is installed on Ethereum nodes.
Current Price: $1,570
#3 PAX Gold (PAXG)
Founded in 2019 by Paxos, Paxos Gold (PAXG) is a crypto asset backed by real gold reserves held by its developers. Co-founded by Charles Cascarilla and Rich Teo, Paxos is a startup specializing in building infrastructure for cryptocurrency exchange. Each PAXG is redeemable for one troy fine ounce of gold, and its market value also mirrors the physical gold price. According to Paxos, the ERC-20 token is on the Ethereum Blockchain and is exchangeable for other cryptocurrencies. Since it represents physical gold, its value is tied directly to the market value of the traditional asset.
Current Price: $1,885
#2 Yearn.Finance (YFI)
In 2020, Andre Cronje launched Yearn.Finance to provide financial services to users. This protocol helps users optimize their earnings by linking them to the highest yields on their digital assets. While DeFi created an avenue for enthusiasts to gain wealth, experts found many inconsistencies with the technology. This led to Andre Cronje’s drive to create a more suitable platform. Yield Finance made yield farming accessible to the public. It has two products helping users earn, namely, Earn and Vaults. Simply put, Yield Finance allows people access the most-attractive yields.
Current Price: $7,100
#1 Bitcoin (BTC)
Bitcoin is a decentralized digital currency that uses cryptography to secure and verify transactions, as well as to control the creation of new units of the currency. It is the first and most widely used cryptocurrency.
Bitcoin transactions are recorded on a public ledger called the blockchain. The blockchain is a chain of blocks that contains information about all the transactions that have taken place on the Bitcoin network. Each block contains a list of recent transactions, and once a block is added to the blockchain it cannot be altered.
Current Price: $21,200
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