Although cryptocurrency was considered unsustainable by skeptics, 2021 turned out to be a great year. This is despite global economic turmoil and a pandemic that just doesn’t seem to go away. Crypto investors have made a lot of money in the past two years. Imagine a return of 400% or more and greater acceptance by the mainstream investor.
In 2021, the winners were alt coins, meme currencies and NFTs. Dogecoins and Shiba Inu – meme coins – have taken the market by storm due to business magnates like Elon Musk offering their endorsement. 2021 has turned out to be a phenomenal year for the cryptocurrency industry.photo credit: Rūdolfs Klintsons / Pexels
Want to know more about the best performing currencies in 2021? Here’s a list.
Top Cryptocurrencies 2021
At the top of the list, Polygon (MATIC) has performed well for many reasons. Starting at 0.2 cents USD, the value grew to $2 and remained stable by the end of December 2021. It took on Ethereum and its problems such as blocked blockchain and overuse by adding an extra layer. This tier is scalable and grows in size based on user activity. It works well with ETH blockchains to provide a seamless experience. Profits are a whopping 11.00% and above and the market cap is $14 billion.
At its core, Terra (LUNA) provides a way to create stablecoins with a tangible asset base. There are stablecoins for every world currency – the USD, Euro, Korean Won and others. The idea is to make it easier to adopt and use cryptocurrencies on a larger scale. Several e-commerce companies support this method and price stability is achieved by trading its tokens with stablecoins. The market cap is $23 billion.
Solana (SOL) is a cryptocurrency that has better maintained its value over time. The value quadrupled in August 2021 and stabilized in November after a bit of instability. It is similar to Avalanche and gives Ethereum stiff competition. Solana’s transactions use a PoS platform and low fees and faster transactions. Even though they all use smart contract platforms and facilitate building applications on their networks. Solana uses a different method. IT uses PoS and PoH (Proof-of-History), which provides a timestamp for each transaction.
Dogecoin (DOGE) – the infamous meme coin – inspires a lot of confidence among investors, such as Tesla’s potential in the market. Thanks to Elon Musk’s tweets about accepting vehicle purchases with Dogecoins, this currency has also gained traction and confidence in the market. Earnings are 2819% in 2021 and a market cap of $22 billion.
Avalanche (AVAX) claims it is like Ethereum, but much faster. Its creators say it’s scalable, decentralized, and secure. This is the main reason for its widespread adoption. Avalanche was developed by Deloitte and Ava Labs and is used by local and state governments. The consensus protocol verifies transactions and distribution of three blockchains.
6. Shiba Inu
Shiba Inu (SHIB) has become hugely popular thanks to its meme and ease of use. Created on the Ethereum blockchain, this native and decentralized exchange offers token swapping, governance with its bone token, and staking. The NFTs are called Shiboshis and they are also in high demand. It has a market cap of $17 billion.
Binance has the largest and most liquid exchange. It offers a wide range of applications such as paying transaction fees, financial services, investing in stocks, ETFs, and travel arrangements. Binance’s proprietary cryptocurrency – BNB – has grown steadily in 2021, seeing its highest number in April 2021. Its market cap is $86 billion.
Cardano (ADA) is another platform similar to Ethereum and uses the Proof of Stake model. It saw its highest growth in August 2021. Its price fell by half and its market cap is $40 billion.
Created to be an alternative to Bitcoin and provide value and usability, Ethereum (ETH) had a large share of the crypto market. With the increased adoption of NFTs and other cryptocurrencies, Ethereum lost market share and saw a decline in value. This is to be expected in the digital currency market and ETH’s market share is $441 billion.photo credit: Peter Patel/Pixabay
It is safe to say that cryptocurrencies are here to stay, and the central banks of many countries are looking for ways to offer secure versions of these to their citizens. In 2022, cryptocurrencies will continue to make their way into the world’s financial systems.
So, which ones will perform best for 2022? Time will tell; for now, those 10 cryptos will continue to drive the crypto market forward.
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