Updated, June 26, 2025.

By now, it’s safe to say that Bitcoin has had a tremendous impact on the world. As a result of Bitcoin’s widespread impact, many have tried to follow in Satoshi Nakamoto’s footsteps and have attempted to create their own cryptocurrency. Today, there are thousands of different cryptocurrencies, effectively making Bitcoin a catalyst of the crypto world. These post-bitcoin coins are referred to as “altcoins.”

Key takeaways

• The term altcoin covers pretty much any cryptocurrency that isn’t Bitcoin.
• The best altcoins often market themselves as upgrades to Bitcoin, tackling things like slow transaction speeds, scalability issues, or energy demands. 
• There are now over 25,000 altcoins listed on exchanges. 
• Altocoins power a range of applications such as DeFi protocols, NFT marketplaces, supply chain tools, metaverse platforms, and even decentralized identity systems.

What are altcoins?

Altcoin, the term coined for cryptocurrencies following Bitcoin’s success, comes from two words: “alt” and “coin,” meaning “alternative coin.” These are generally marketed as strong alternatives to Bitcoin, as they address what some people believe to be Bitcoin’s limitations. Despite that selling point, altcoins still have to compete against Bitcoin, the most popular (and highest valued) cryptocurrency in the world, and must have a competitive advantage against Bitcoin to succeed.

Many altcoins are built using the basic framework of Bitcoin, giving most of them that much-desired aspect of being “peer-to-peer”. Also, much like Bitcoin, they aim to provide a cheap and efficient means of transaction.

As of early 2025, the crypto scene has gotten pretty crowded. There are now over 25,000 cryptocurrencies listed on exchanges.

The first-ever altcoin came in April 2011, just two years after bitcoin’s creation. Namecoin (NMC) was created to inject decentralization into name registration on the web (making user domains less visible, allowing for increased censorship resistance and anonymity), as well as being an alternative digital currency to Bitcoin. The coin was based on the code of Bitcoin and even used the same proof-of-work algorithm. Additionally, just like its predecessor, Namecoin’s supply was capped at 21 million.

Another popular altcoin that gained traction not so long after Bitcoin’s creation was Litecoin. Introduced in October 2011, Litecoin was advertised as “the silver to Bitcoin’s gold.” However, unlike Bitcoin, Litecoin had a supply cap of 84 million, which is four times BTC’s supply. Despite following the path that Bitcoin paved, Litecoin was different in many ways—mainly, it approved mining and transactions much quicker and more frequently. Unlike Namecoin, which eventually fizzled out, Litecoin remains among the top 10 cryptocurrencies in terms of total market cap. 

The different kinds of altcoins

As altcoins evolved over the years, categories within the “altcoin” umbrella have emerged. Here are a few different kinds that have been created over the years:

Proof-of-work (PoW) Altcoins

These are the OG-style cryptocurrencies, still mining new coins the old-fashioned way. By crunching through complex math problems to validate transactions. Yes, the energy use is still a sticking point, but there’s ongoing work to make PoW greener through renewable energy and efficiency improvements. Bitcoin’s the poster child here, but it’s not alone. Coins like Litecoin and Monero still stick to PoW roots, even as Ethereum has moved on.

Proof-of-stake (PoS) Altcoins

PoS flips the script on mining. Instead of burning energy, it lets users “stake” their coins, lock them up as collateral, to secure the network and earn rewards. It’s faster, more scalable, and far more eco-friendly. Ethereum joined the PoS club after The Merge, and others like Solana, Cardano, and Polkadot have built their whole ecosystems around it. If you’re launching a new Layer 1 blockchain today, odds are you’re going with PoS.

DeFi tokens

These are the building blocks of decentralized finance. A corner of crypto that’s basically trying to rebuild banking, lending, trading, and insurance without the banks. DeFi tokens are used for everything from governance votes to providing liquidity to earning yields. Names like Aave, Uniswap, and Compound have become staples, and institutional investors are increasingly paying attention. Traditional finance is no longer pretending DeFi doesn’t exist.

Non-fungible tokens (NFTs)

Technically not currencies, NFTs are one-of-a-kind digital assets that prove ownership. Whether it’s a piece of digital art, music, game items, or even virtual land. After the 2021-22 hype cycle, things cooled down, but NFTs didn’t disappear. They evolved.

Now we’ve got things like fractional NFTs, in-game utility NFTs, and tokenized versions of real-world assets. The tech is still young, but it’s expanding into surprising places, including intellectual property and entertainment.

Stablecoins

 When crypto gets too wild (which it often does), stablecoins are the safe zone. These tokens are tied to something stable, usually fiat currencies like the U.S. dollar, to reduce volatility. 

USDT and USDC lead the pack, with gold-pegged options like PAXG and a few algorithmic stablecoins still kicking around (though not without their controversies). They’re essential for trading, cross-border transfers, and bridging crypto and traditional finance.

 👉Related: Stablecoin Growth: What’s Driving the Boom?

Layer 2 (L2) tokens

Ethereum is great, but it’s not exactly fast or cheap under heavy traffic. That’s where Layer 2 solutions come in. 

Scaling systems that sit on top of existing blockchains to speed things up and cut costs. Tokens like Polygon (MATIC), Arbitrum (ARB), and Optimism (OP) power these ecosystems. L2s are critical for decentralized apps (dApps) and DeFi to go mainstream without crushing users with gas fees.

Metaverse and gaming tokens

As virtual worlds keep expanding, so does the demand for in-game and in-world currencies. These tokens buy digital land, fund gameplay, or give users a say in how platforms evolve. 

Decentraland’s MANA, The Sandbox’s SAND, and Axie Infinity’s AXS are some of the better-known examples. The hype has cooled a bit since the initial buzz, but the infrastructure keeps growing, especially in gaming and virtual social spaces.

Security tokens

These are where crypto and traditional finance truly intersect. Security tokens represent shares of real-world assets, think stocks, real estate, or private equity, on the blockchain. They’re regulated like traditional securities, but aim to streamline ownership, compliance, and settlement using blockchain tech. Still a developing space, but one with serious long-term potential.

Utility tokens

Think of these as access passes. Utility tokens don’t promise profits or ownership, but they do let you interact with specific platforms. Whether that’s paying for services, voting on changes, or unlocking premium features. They’re everywhere in the Web3 world, powering everything from cloud storage apps to decentralized identity systems.

What are some promising altcoins on the market?

The crypto world doesn’t sit still for long. Projects rise, fall, and sometimes come roaring back in months. But as of mid-2025, a few names continue to stand out for their staying power, innovation, and growing ecosystems. Here’s a quick rundown of some of the most promising altcoins right now:

Ethereum (ETH)

Still holding strong as the #2 cryptocurrency, Ethereum remains the backbone of decentralized apps, DeFi, and NFTs. Since making the leap from Proof-of-Work to Proof-of-Stake and rolling out upgrades like Dencun and Pectra, Ethereum has gotten faster, greener, and more scalable. 

Developers keep building on it for a reason. It’s a well-oiled machine with unmatched tools and support.

• Price (approx. June 2025): $3,500–$4,000+ USD (yep, still volatile)
• Market Cap: $300–$500+ billion USD.
• Key Focus: Smart contracts, DeFi, NFTs, Layer 2 scaling, enterprise apps

Solana (SOL)

Solana has carved out its own lane. Fast, cheap, and ideal for high-volume dApps. It’s especially popular in GameFi thanks to its blazing transaction speeds and minimal fees. Its hybrid consensus model (PoS + Proof-of-History) helps it scale without sacrificing too much on decentralization.

• Price (approx. June 2025): $100–$150+ USD.
• Market Cap: $60–$90+ billion USD.
• Key Focus: High-speed dApps, DeFi, gaming, NFTs, enterprise use cases

Ripple (XRP)

 XRP isn’t flashy, but it’s efficient, and that’s exactly the point. It focuses on solving a very specific problem: making cross-border payments faster and cheaper for financial institutions. Legal battles aside, RippleNet keeps growing globally, and that utility keeps XRP in the game.

• Price (approx. June 2025): $0.50–$0.80+ USD.
• Market Cap: $80–$45+ billion USD.
• Key Focus: Global remittances, institutional finance, settlement speed

Tether (USDT)

Tether isn’t exciting, but in crypto, that’s kind of the point. It does exactly what it’s supposed to: stay stable. As the largest stablecoin, USDT acts as a bridge between fiat and crypto, and is used everywhere from exchanges to DeFi protocols.  It’s available across multiple chains, including Ethereum, Tron, and Solana.

• Price (approx. June 2025): ~$1.00 USD (as intended)
• Market Cap: $100–$120+ billion USD
• Key Focus: Stability, liquidity, fiat on-ramps, cross-chain utility
  

Cardano (ADA)

 Cardano moves slowly and methodically by design. Its academic, peer-reviewed approach earns it both respect and criticism, but it’s built a reputation for sustainability, interoperability, and thoughtful upgrades.

 It’s especially active in emerging markets and education-focused blockchain solutions.

• Price (approx. June 2025): $0.40–USD 0.70+
• Market Cap: $15–USD 25+ billion
• Key Focus: Scalable smart contracts, academic rigor, sustainable dApps, global development

How to buy altcoins

Buying altcoins in 2025 isn’t the technical headache it used to be. Whether you’re a crypto newbie or a seasoned holder branching beyond Bitcoin, the options are broader and a whole lot easier to navigate. Here’s a quick breakdown of where and how people are picking up altcoins these days:

Centralized exchanges (CEXs)

Still, the go-to option for most people, centralized exchanges like Paxful make the process simple. You sign up, verify your identity, connect a payment method (bank transfer, credit card, etc.), and you’re off to the races. 

These platforms offer a wide selection of altcoins, decent security features, and often a smooth, app-friendly experience. Just watch out for trading fees. They vary more than you’d think.

Decentralized exchanges (DEXs)

If you’d rather keep your coins in your own wallet and skip the middleman, DEXs like Uniswap, PancakeSwap, and SushiSwap are the way to go. You connect a non-custodial wallet (like MetaMask or Trust Wallet) and trade directly from it, no signups, no KYC. 

It’s more private, sure, but also a bit less forgiving for beginners. There’s no “forgot password” button if something goes wrong.

Peer-to-peer (P2P) marketplaces

Prefer dealing directly with another person? P2P platforms like Paxful make it possible to buy or trade crypto with just about any payment method imaginable. 

You can swap Bitcoin for stablecoins, altcoins, or even gift cards. 

It’s flexible but comes with trust factors. Always check reputations and use platform escrows when possible.

Brokerage and fintech Apps

These days, even traditional investing apps are jumping on the crypto train. Platforms like Robinhood, eToro, or Revolut (depending on where you live) let you buy a handful of major altcoins right alongside your stocks and ETFs. 

The experience is smooth and familiar if you’re already using these apps, but keep in mind that in some cases, you’re not holding the actual coins (just exposure to them).

Safety tips for safe trading:

• Stick to trusted platforms. Always check for security features like two-factor authentication (2FA) and cold storage.
• Read the fine print. Fees, spreads, and withdrawal limits vary a lot between platforms.
• Start small. Crypto is still volatile. No need to go all-in on your first trade.
• Keep your private keys safe. If you’re using a DEX or self-custody wallet, losing access means losing your funds. No joke.

Why are altcoins important?

It’s tempting to lump altcoins into one big “everything that isn’t Bitcoin” category, but that really doesn’t do them justice. In 2025, altcoins will have carved out a central role in the evolution of the crypto world. Here’s why they’re a big deal:

Innovation

Altcoins are where blockchain experiments happen. Sure, Bitcoin was the pioneer, but altcoins are the tinkerers, specialists, and trailblazers.  Whether it’s Ethereum introducing smart contracts, Solana pushing transaction speed limits, or stablecoins bringing price stability to an otherwise wild market.  Altcoins take the foundation Bitcoin laid and build entirely new layers on top. Some try to fix Bitcoin’s flaws. Others go in totally different directions.

Real-world (and virtual) use cases

The altcoin universe isn’t just about buying and selling. It powers a ridiculous range of applications. DeFi protocols, NFT marketplaces, supply chain tools, metaverse platforms, even decentralized identity systems… There’s an altcoin (or a few dozen) behind nearly every corner of this ecosystem. It’s like blockchain has grown out of its digital cash phase and moved into the “what else can we do with this tech?” era, and altcoins are leading the way.

Investment variety (and volatility)

For investors, altcoins can be a double-edged sword, but one worth wielding if you’re careful. Some people are drawn in by the promise of high returns, especially when spotting early-stage projects with real potential. Others use altcoins to diversify away from Bitcoin-heavy portfolios. Of course, with higher potential comes higher risk. Plenty of altcoins have flamed out fast. So, as always: DYOR (do your own research), and don’t bet the house.

A healthier crypto ecosystem

 If the entire crypto world revolved solely around Bitcoin, things would be a lot more brittle. Altcoins help keep the ecosystem decentralized, not just technically, but economically and ideologically. They create competition, push developers to improve, and reduce the risk of any single failure shaking the entire market. A thriving altcoin scene makes the whole space more robust.

Hedging against a wobbly world

We’re living in unpredictable times. Inflation is still sticking around, global tensions remain high, and central banks keep playing interest-rate whack-a-mole. In that kind of environment, altcoins, especially stablecoins and regionally useful tokens, are starting to look like more than just speculative assets. They’re financial tools, hedging strategies, and in some cases, real alternatives to unstable local currencies.

Altcoins aren’t just riding Bitcoin’s coattails anymore. They’re pushing the crypto movement into new territory. Ignore them, and you’ll miss where the space is actually heading.

Bottom line: Altcoins are still growing, and growing up

Bitcoin may still sit at the top of the crypto food chain, but altcoins have long since moved past the role of background noise. They’ve grown into a thriving, fast-moving part of the digital economy. One that’s no longer just about hype or moonshots.

With tens of thousands of tokens circulating and new ones launching almost daily, the race to find “the next big thing” is alive and well. But the real value in altcoins isn’t just in the wild price swings or viral launches. It’s in what they do. They power tools, ecosystems, and entire industries. Some are pushing the limits of decentralized finance. Others are reinventing ownership, gaming, or how we move money around the world.

This isn’t just growth. It’s evolution. The crypto landscape isn’t stuck in its early-adopter phase anymore. It’s maturing, branching out, and getting more serious about real-world impact. Altcoins are at the center of that shift, and the pace isn’t slowing down anytime soon.

Important note: These materials are for general informational purposes only and do not constitute financial, investment, or professional advice. Cryptocurrency investments involve significant risks, including potential substantial financial loss, and we do not endorse specific investments, tokens, or projects. Always conduct your own research and consult qualified financial or legal professionals before investing, as Paxful disclaims liability for any losses arising from reliance on these materials to the fullest extent permitted by law.