Cryptocurrency in 2025: Are the Bitcoin Alternatives Worth It?

While cryptocurrency isn’t the diamond in the rough as it once was, its mainstream adoption has introduced new heights for this digital currency.

This is especially true considering the proliferation of local and international laws and regulations made to encourage and regulate crypto adoption, as well as the hundreds of businesses around the world accepting (or in the process of accepting) crypto tokens like Bitcoin as an alternative form of payment.

Having said that, the crypto space has been known to be dominated by only a few key players, the most notable of which is Bitcoin.

It’s not uncommon for crypto trends to ride on the swings of Bitcoin, historically speaking. Many people would hastily attribute crypto’s reliance on Bitcoin’s performance as an unhealthy codependency.

But the truth is Bitcoin alternatives are far more resilient than they may appear at first glance. If you want to know which Bitcoin alternatives to watch out for this 2025, read on for a shortlist of the year’s best players in the crypto space.

Let’s jump right in and see the top Bitcoin alternatives.

 

Litecoin

Litecoin is one of the original Bitcoin alternatives, having been launched in 2011 as a crypto token meant to be used in smaller-scale transactions.

Its relevance persists in 2024, albeit at a notch or two lower than Bitcoin. Its price levels have gone up and down over the past years, stabilizing at about $70 per Litecoin as of October 2024.

What makes Litecoin a great alternative to Bitcoin is its improved transaction speed and lower rates. One of Bitcoin’s drawbacks is the time it takes to process payments, only capable of handling about seven transactions a second.

Litecoin doesn’t have this issue, providing a more practical option for everyday use. Its mining requirements are also lower than Bitcoin’s, making it more accessible to individuals without enough capital to invest in full-blown mining rigs.

Furthermore, Litecoin is also widely accepted in a lot of commercial transactions, though not to the same extent as Bitcoin. If you want to diversify your crypto portfolio and add a similar, smaller-scale token into the mix, Litecoin may be a worthy consideration in 2025. You can buy Litecoin, along with Bitcoin from a reputable exchange like bitcoin.com.au

 

Ethereum

If you’re aware of Bitcoin, you’ve most likely heard about Ethereum as well. And while this token’s market capitalization is just a third of Bitcoin’s, its relevance in the space is not worth underestimating.

For one, the blockchain powering the Ethereum token is significantly more robust than Bitcoin, capable of running and executing complex commands, such as smart contracts, NFTs, and decentralized applications.

Its YTD performance is similar to Litecoin in that it has its ups and downs. But unlike Litecoin, Ethereum’s November 2024 performance is $400 USD above its opening price in January 2024, which means early-year investors have turned in a profit from investing in this token.

Furthermore, Ethereum’s blockchain is currently in the process of transitioning to a more energy-efficient and scalable blockchain. For reference, Bitcoin’s annual electricity consumption rivals that of entire countries, such as Finland.

With a more green approach and a broad and innovative ecosystem, Ethereum remains a versatile and established alternative to Bitcoin for the upcoming year of 2025.

 

Polygon

Run on an Ethereum sidechain, Polygon is another Bitcoin alternative to consider investing in as we approach the middle of the decade.

This cryptocurrency runs on Ethereum’s blockchain, which means it can support the range of innovative perks that Ethereum is known for on a semi-independent scale. This includes, of course, DApps, DeFi projects, and NFTs.

People may choose to invest in Polygon over the main Ethereum blockchain for several reasons.

For one, Ethereum’s popularity means that it has more transactions, which can increase its gas fees per transaction. Opting to switch to a sidechain means that crypto traders can circumvent these expensive fees and make trades much smoother.

Secondly, Ethereum tokens are also often bridged over to Polygon, which means there’s a naturally high supply of Polygon as traders gain tokens on the Polygon network. The opposite is also true. This dual cooperation helps facilitate trade with both crypto tokens more seamlessly.

With a market cap of $1 billion dollars, Polygon is among one of the top crypto tokens in 2025.

However, it’s undergoing a downtrend as more capable crypto tokens are starting to perform their functions at a higher capacity. This means if you do want to invest in this crypto, you have to proceed with extra caution.

 

Solana

Similar to Ethereum and Litecoin, Solana is another popular alternative to Bitcoin that has seen a meteoric rise since its introduction in 2020. It has an edge over Bitcoin with its blazingly fast transaction speeds, capable of handling 65,000 transactions in a second.

Solana also stands out from other Bitcoin alternatives with its low transaction fees, making it a good option for smaller-scale transactions just like Litecoin.

But on top of that, Solana also has similarities to Ethereum thanks to its ability to handle smart contracts and decentralized apps. This makes it an attractive platform for crypto developers who want to build dApps on a verified system.

Compared to Ethereum, Solana has the upper hand thanks to its generally lower fees and shorter transaction times—a product of its unique proof-of-history mechanism.

This cryptocurrency is the fifth-highest in terms of market capitalization currently at $78 billion. While not near Bitcoin’s capitalization, its array of perks are definite benefits for people looking to venture beyond the Bitcoin ecosystem.

 

XRP

Ripple’s XRP token is another popular crypto investment for 2025. It helps facilitate cross-border financial transactions at fast speeds and at a low cost.

With XRP’s utility, its parent company Ripple has partnered with many major banks and payment providers to help facilitate faster (three to five-second) cross-border transactions.

This utility is one of the perks of using crypto over fiat—and XRP being one of the primary tokens to facilitate that activity makes it an attractive investment option.

That said, Ripple faces ongoing regulatory scrutiny on its legal status, which has brought its investments to a halt.

However, recent developments have claimed that a court ruling has denied XRP’s label as a security. This positive move has brought crypto exchanges to relist the token, making it a viable investment option for 2025 and beyond.

 

Cardano

A major cryptocurrency to watch out for in 2025 is Cardano. Just like Ethereum, it’s run on a blockchain that supports DeFi, dApps, and smart contracts.

However, this crypto distinguishes itself among other top crypto with its Proof of Stake (PoS) consensus mechanism called Ouroboros, which allows investors to stake and reap passive rewards by locking the cryptocurrency in a staking pool.

While Ethereum also has staking potential, Cardano is more energy efficient. This means it doesn’t need as much computational power to get rewards.

Cardano is also distinct in the sense that it follows a research-based approach to blockchain development, whereas Ethereum uses a more iterative approach.

Bitcoin’s approach is more decentralized and slower in comparison to both aforementioned tokens, as updates are rolled out by a global community (instead of token-specific blockchain developers) and require broad stakeholder consensus before implementation.

 

Tether

Even while Bitcoin is one of the most popular cryptocurrencies in the market, it’s still quite volatile. It’s no match against fiat currency from actual countries, like the US dollar, the Euro, or the Australian dollar.

Tether is a type of cryptocurrency that’s pegged against a single US dollar. It’s a stable coin, meaning that it maintains a stable value regardless of economic conditions affecting the current crypto market.

While you’re not expected to make a profit from investing in Tether (you’re better off putting your cash in a high-yield savings bank account at this point!), having some Tether can help you flexibly invest in cryptocurrency when the conditions are ripe.

Furthermore, it’s common for crypto investors to switch from Bitcoin to Tether when they want to exit a position. It also acts as a convenient reserve for holding dollar-equivalent funds, ready to be invested in cryptocurrency when market conditions are favorable.

While other stablecoins also can be used like USDC, Tether is one of the most traded stablecoins in the market, making it fairly easy to find and trade in reputable exchanges.

 

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