What Exactly Are Altcoins?
Altcoins—short for “alternative coins”—are all cryptocurrencies other than Bitcoin. Originally, the term lumped Ethereum, Litecoin, Ripple, and scores of experimental tokens into one category. But by 2025, that catch-all definition is becoming increasingly inadequate.
Is the Term “Altcoin” Outdated?
In today’s expansive crypto landscape, calling Ethereum an “altcoin” is like calling the S&P 500 a “non-Nasdaq index.” It conveniently signals “not Bitcoin,” but lacks nuance. Many in the industry now favor more precise labels like “smart contract platforms,” “DeFi tokens,” or “Layer 1s.” Yet, mainstream usage persists—especially in headlines and among retail investors.
Altcoins by Market Cap: From Mega to Nano
Market capitalization—calculated as current price × circulating supply—is the go-to metric for understanding coin size and maturity. It also offers insight into risk and stability: higher caps tend to be more resilient in volatile markets.(Coinbase)
Here’s a snapshot of how altcoins are tiered by cap:
| Tier |
Market Cap Range |
Typical Examples |
| Mega-Cap |
> $200 billion |
Ethereum (ETH), Bitcoin (benchmark) |
| Large-Cap |
$10 billion – $200 billion |
BNB, Solana (SOL), XRP |
| Mid-Cap |
$1 billion – $10 billion |
Kaspa (KAS) , Avalanche (AVAX), Chainlink (LINK) |
| Small-Cap |
$100 million – $1 billion |
Niche tokens, meme coins, early-stage projects |
| Micro-Cap & Below |
<$100 million |
Ultra-speculative, high-volatility projects
|
(Large, mid-, small-cap ranges per Gemini, eToro, Rockitcoin) (RockItCoin,eToro,Gemini)
(Mega-cap to pico-market tiers per AltcoinInvestor) (Altcoin Investor)
Top Altcoins by Tier (August 2025)
Mega/large-cap:
Ethereum (ETH) – smart contract leader
Binance Coin (BNB) – native to Binance ecosystem
Solana (SOL), XRP – prominent utility and infrastructure players (Wikipedia,eToro,MarketWatch)
Mid-cap:
Small-cap & lower tiers:
Emerging meme tokens like Little Pepe (LILPEPE)—hinted as meme-season darlings (tradu.com,99Bitcoins)
Novel utility projects like Remittix (RTX)—targeting real-world payments with strong early backing (99Bitcoins)
Why Altcoins Still Matter
Altcoins fuel crypto’s innovation engine:
Smart contract ecosystems (Ethereum, Solana)
DeFi and tokenized finance
Gaming, NFTs, and the metaverse
Scaling & interoperability solutions (Layer 2 chains, cross-chain bridges)
These platforms often lead in technological breakthroughs—raising adoption and challenging traditional financial norms.
Final Thoughts
The label “altcoin” is becoming an anachronism. In a space defined by diverse use cases, technology stacks, and risk profiles, more descriptive categories are both clearer and more useful. That said, "altcoin" remains a culturally recognized shorthand—and still useful as a quick contrast against Bitcoin.
