The year 2016 was a landmark period for the cryptocurrency world. While Bitcoin remained the undisputed leader, several alternative digital assets made significant strides, capturing investor interest and demonstrating the expanding potential of blockchain technology. As global economic uncertainty grew—fueled by events like Brexit, the U.S. presidential election, and currency devaluations—digital currencies emerged as resilient and increasingly attractive alternatives to traditional financial systems.
This article explores seven key cryptocurrencies that stood out in 2016, analyzing their performance, market dynamics, and the underlying factors that drove their growth. From Ethereum’s groundbreaking smart contract platform to Dash’s privacy-focused rebranding, each coin tells a unique story of innovation and market adaptation.
Bitcoin: The Unshaken Leader
Core Metrics (2016):
- Market Cap (Start/End): $161 million → $14.59 billion
- Price (Start/End): $411.99 → $908.17
- Yearly Average Price: $909.94
Bitcoin continued to dominate the crypto landscape in 2016, reinforcing its status as the original and most influential cryptocurrency. Despite not reaching new all-time highs during the year, Bitcoin rebounded strongly from sub-$400 levels early in the year, peaking near $983 in December—its highest point in nearly three years.
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The surge was largely driven by macroeconomic turbulence, including the depreciation of the Chinese yuan, the UK’s vote to leave the EU, and Donald Trump’s unexpected election victory. These events heightened demand for decentralized, borderless assets perceived as safe havens.
Trading activity remained heavily concentrated in Asia, with Chinese exchanges like OKCoin, Huobi, and BTCC playing a dominant role in global volume. This regional concentration underscored both the growing adoption of crypto and the regulatory risks that would later emerge.
Ethereum: Innovation Amid Crisis
Core Metrics (2016):
- Market Cap (Start/End): $80 million → $638 million
- Price (Start/End): $2.83 → $7.31
- Yearly Average Price: $19.59
Ethereum emerged as one of the best-performing cryptocurrencies in 2016, despite a major setback. Its first half of the year saw explosive growth—over 2000%—thanks to widespread excitement around decentralized applications (dApps) and smart contracts.
However, June and July brought the infamous DAO hack, where attackers drained approximately $50 million worth of Ether from a decentralized venture fund. In response, the Ethereum community executed a hard fork to reverse the theft, resulting in two chains: Ethereum (ETH) and Ethereum Classic (ETC).
While the split caused short-term volatility and philosophical debates around "code is law," Ethereum recovered and solidified its position as the leading platform for enterprise blockchain solutions, IoT integration, and fintech innovation.
Ripple (XRP): Bridging Traditional Finance
Core Metrics (2016):
- Market Cap (Start/End): $206 million → $232 million
- Price (Start/End): $0.006168 → $0.006310
- Yearly Average Price: $0.009358
Ripple stands apart from open blockchains like Bitcoin and Ethereum by operating as a permissioned ledger managed by a private company. XRP functions as a bridge currency for instant cross-border payments, targeting banks and financial institutions.
Although XRP’s price saw minimal change year-over-year, its strategic partnerships signaled strong institutional interest. In September, Ripple secured investments from major players like Standard Chartered and Siam Commercial Bank, boosting confidence in its long-term viability.
Unlike peer-to-peer cryptocurrencies, XRP is not widely accepted by retailers—but its potential to streamline global remittances keeps it relevant in discussions about blockchain adoption in regulated finance.
Litecoin: Steady Growth with Real-World Adoption
Core Metrics (2016):
- Market Cap (Start/End): $149 million → $212 million
- Price (Start/End): $3.41 → $4.34
- Yearly Average Price: $5.55
As one of the earliest Bitcoin derivatives, Litecoin maintained a stable trajectory throughout 2016. Its consistent performance reflected growing trust in its technical reliability and faster transaction times compared to Bitcoin.
Two key events influenced its price movement:
- A mid-year spike linked to Bitcoin’s 2015 halving cycle and Brexit-related market volatility.
- A major boost in August when Coinbase added Litecoin to its GDAX exchange, enabling direct USD trading.
This integration with mainstream platforms marked a turning point in Litecoin’s journey toward broader acceptance.
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Monero: Privacy Meets Mainstream Attention
Core Metrics (2016):
- Market Cap (Start/End): $4.7 million → $133.5 million
- Price (Start/End): $0.45 → $10.38
- Yearly Average Price: $13.50
Monero experienced one of the most dramatic growth stories of 2016, with market cap increasing nearly 28-fold. Its rise was fueled by adoption on darknet markets like AlphaBay and Oasis, which chose Monero as their preferred currency due to its advanced privacy features.
Unlike Bitcoin, Monero uses ring signatures and stealth addresses to obscure transaction details, making it nearly untraceable.
While this association with illicit activity drew criticism, it also brought unprecedented media attention from outlets like Vice and ZDNet—helping shift Monero into mainstream crypto discourse.
Despite cooling off in late summer, Monero saw renewed momentum after Trump’s election, reflecting its sensitivity to geopolitical uncertainty.
Ethereum Classic: A Testament to Ideological Divide
Core Metrics (2016):
- Market Cap (Start/End): $47.9 million → $90.6 million
- Price (Start/End): $0.58 → $1.05
- Yearly Average Price: $3.30
Born from the Ethereum hard fork, Ethereum Classic preserved the original chain where the DAO hack remained unaltered—a decision rooted in the principle that blockchain should be immutable.
Though smaller in market cap and influence, ETC gained traction among purists who opposed interventionist changes. In December, it surged 37% due to active trading within China’s altcoin community and rising hash rate.
While overshadowed by Ethereum’s rapid development, ETC demonstrated that ideological conviction could sustain a parallel blockchain ecosystem.
Dash: Rebranding for Legitimacy
Core Metrics (2016):
- Market Cap (Start/End): $16 million → $70.7 million
- Price (Start/End): $2.64 → $9.67
- Yearly Average Price: $14.42
Formerly known as Darkcoin, Dash underwent a strategic rebranding in 2015 to distance itself from its dark web associations. The move paid off: by 2016, Dash’s price had tripled and its market cap quadrupled.
Powered by its Masternode network and Darksend privacy protocol, Dash offered near-untraceable transactions while positioning itself as a legitimate digital cash alternative.
Developers emphasized usability and merchant adoption, signaling a shift toward mainstream viability—even as critics questioned its long-term fairness and decentralization.
Frequently Asked Questions
What made 2016 significant for cryptocurrencies?
2016 marked a turning point when digital assets gained credibility amid global economic uncertainty. Events like Brexit and currency devaluations increased demand for decentralized alternatives, driving adoption beyond niche communities.
Why did Ethereum outperform most altcoins despite the DAO hack?
Because Ethereum offered real utility through smart contracts and dApps. The hack was damaging, but the community’s swift response and continued developer support reinforced confidence in its long-term vision.
Is Monero’s darknet association a risk or benefit?
It’s both. While early adoption on dark markets boosted visibility and price, it also attracted regulatory scrutiny. However, growing interest in financial privacy may help Monero gain legitimate use cases.
How does Ripple differ from Bitcoin?
Bitcoin is decentralized and open; Ripple is controlled by a private company and designed for institutional use. XRP aims to improve cross-border payments rather than serve as peer-to-peer electronic cash.
Can Litecoin maintain relevance alongside Bitcoin?
Yes—its faster block times and lower fees make it more practical for everyday transactions. Integration with platforms like Coinbase has strengthened its position as a complementary asset.
What is the future of Ethereum Classic?
ETC survives due to ideological loyalty and mining activity. While unlikely to surpass Ethereum, it serves as a living example of blockchain immutability principles.
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As we moved into 2017, the cryptocurrency market was more diverse and dynamic than ever. Bitcoin remained central, but innovations from Ethereum, Monero, Dash, and others proved that blockchain technology was evolving rapidly—driven by both technical progress and shifting user needs.
The convergence of fintech mergers, blockchain interoperability projects, and growing demand for financial privacy suggests that 2016 was not just a breakout year—it was the foundation for a new era of digital value exchange.
Core Keywords: Bitcoin, Ethereum, Ripple, Litecoin, Monero, Dash, cryptocurrency market, blockchain technology