Even though Bitcoin is the premier cryptocurrency, many other altcoins are worth adding to your portfolio. 2021 has been a massive year for several cryptocurrencies. Even though altcoins are higher-risk investments than BTC or ETH, they often provide higher returns in a bull market.
Here are 4 cryptocurrencies that turned $10,000 into $1 million in 2021 with their tremendous rally in this year’s bull market.
- Thanks to the ever-growing popularity of DeFi products, the demand for fast blockchains like Solana will increase tremendously.
- The dog-inspired crypto, Shiba Inu, has legions of fans and Dogecoin-detractors supporting the token.
- The Dogecoin community is growing rapidly, increasing the popularity of DOGE.
- Sandbox (SAND) is one of the top metaverse tokens that have shot to fame over the past few months.
1. Solana (SOL)
The price of SOL has seen a colossal rise in 2021, positioning itself as a potential crypto investment.
SOL has skyrocketed from almost $1.61 to an all-time high of $260.06 in December. An initial investment in this crypto worth $10,000 at the beginning of the year would have raked in $1.2 million today.
The token’s utility and the network’s performance are the key driving forces behind the price surge. Solana employs a unique Proof-of-History protocol, making it entirely different from its competitors. Generally, validators need to communicate with each other to determine the time passed between events. Thanks to PoH protocol, a record time that elapsed between events would be accurately established. Eliminating this validator drag speeds up the network significantly, processing thousands of transactions per second. It also offers the blockchain a real-world appeal.
Yet another significant factor that makes Solana unique over other smart contract blockchains is its focus on scalability. Moreover, transaction fees on the network are about 99% less expensive than Ethereum. This makes Solana an excellent option for retail investors trying to escape the higher gas fees on Ethereum.
However, the blockchain did face a prolonged outage in 2021, and the price plunged. The system breakdown provoked several experts to expose the vulnerabilities in the functioning of the blockchain. But the team managed the situation. Despite all this, the price of SOL attempted to maintain its consistent rally even after the network outage.
There are over billions of dollars in cryptocurrency locked on its blockchain, positioning Solana as one of the largest blockchains for decentralized finance (DeFi). Additionally, several investors have already deployed Solana’s blockchain for NFTs and DeFi. The network has also entered into numerous partnerships in 2021, making SOL one of the top millionaire-maker coins of the year.
2. Shiba Inu (SHIB)
SHIB, the dogecoin-killer, rose to high dominance in the fall of 2021.
Shiba Inu has delivered historic gains for cryptocurrency traders in 2021. The meme coin has skyrocketed from an opening value of $0.000000000073 on January 1, 2021, to almost $0.000034 as of December 12. Shiba Inu has thus delivered over 50,000,000% year-to-date gain this year. In this context, a $10,000 investment in SHIB at the beginning of 2021 would now be worth more than $5 billion.
One key reason for the popularity of SHIB is the launch of its decentralized exchange, the ShibaSawp, in July. The exchange has not just boosted liquidity but also lifted the average hold period for SHIB tokens. This is because the developers created it for the SHIB community to build its own unique brand.
The meme coin has undoubtedly become one of the hottest cryptocurrencies as an increasing number of crypto exchanges added SHIB to their listings. The enhanced liquidity will also draw in more buyers, pushing its adoption rate. Moreover, the token is built on top of the Ethereum network. This allows SHIB to leverage all the benefits of smart contracts to create much more advanced applications like DEXs and NFTs.
A key catalyst that drove the price of the dog-themed crypto to its heightened popularity is the dedicated community behind the token. In addition to celebrity attention, the SHIB community strives to push its popularity and value across multiple social media platforms. Considering its popularity and fast-growing ecosystem, SHIB seems to be a good buy for 2022.
3. Dogecoin (DOGE)
Despite being a meme coin made for fun, DOGE has positioned itself as a solid investment option in 2021.
Dogecoin has seen a parabolic rise this year, both in terms of price and popularity. The joke cryptocurrency escalated its status, positioning itself in the top list of cryptocurrencies in 2021. An initial investment of $10,000 in DOGE in January would now be worth around $8 million today. It is now a potential token that many investors consider to be a viable investment option.
One key reason for the rising popularity of DOGE was Elon Musk and his series of tweets endorsing the token and his interest in it. He once called him the “Dogefather '' pushing the value of the token to the moon. As a result, the coin gradually became the hottest topic of discussion on Twitter and other social media platforms.
Thanks to celebrity endorsements, over 26 merchants now accept Dogecoin for payments, along with several other shops, Internet services, hotels, and gaming platforms. It is also accepted as a form of payment by some major companies, like the Dallas Mavericks, Kronos, and even SpaceX, an American aerospace manufacturer owned by Elon Musk.
Apart from mere popularity, Dogecoin has good network fundamentals. The blockchain network employs cryptography to secure all transactions. The network also has near-zero transaction fees. This makes DOGE a suitable mode of payment for merchants and retailers. It is also used as a tipping coin for content creators across social media platforms like Reddit, Twitter, Facebook, etc. Moreover, it also allows user-specific access to data on the blockchain by employing both public and private keys.
Therefore, Dogecoin has indeed been a millionaire-maker coin for investors in 2021. Moreover, if the team continues to enhance the network utilities, DOGE could further skyrocket in 2022 and beyond.
4. Sandbox (SAND)
Sandbox has emerged as one of the top-performing cryptocurrencies of 2021, capitalizing on the metaverse hype.
SAND started the year with a price below $0.04 and skyrocketed to hit an all-time high of $8.44 on December 15. This indicates that a $10,000 investment in January would have been worth more than $2 million on that date.
Facebook’s decision to rename itself as Meta has put everything related to metaverse in the spotlight. As a result, metaverse tokens like Sandbox have experienced a tremendous rise in popularity and price, garnering the attention of investors worldwide.
Sandbox is a virtual gaming platform that rewards gamers for creating virtual worlds and interacting with their own or other worlds. It is all about monetizing the metaverse, which means the next iteration of the internet that allows users to interact in a 3D virtual environment.
SAND, the primary utility token of the network, has seen a tremendous rise in its price over the past few months. One key reason for the rising popularity and adoption of the crypto is its new strategic partnership with companies like Liberty City Ventures and Galaxy Interactive. This will eventually broaden its reach and expand the network’s popularity globally.
Moreover, the Sandbox ecosystem is growing tremendously. It features Voxedit, an asset creation tool for producing non-fungible tokens (NFTs). This can be used in-game and in the NFT marketplace for creators to trade their assets. Unlike other games owned by corporations, users can retain complete ownership of their virtual world as NFTs in Sandbox.
Additionally, after four years of continuous development, Sandbox has finally opened the doors to its metaverse with an exclusive Alpha pass. Only 5,000 individuals could participate in its multi-week play-to-earn event and explore the Sandbox metaverse. If the platform continues to enhance its network and enter into more partnerships, SAND could skyrocket in 2022 also.
A Final Word
With thousands of projects in the market, it could be tough to differentiate between a promising project with long-term growth potential and quick cash grabs. These 4 cryptocurrencies mentioned here have turned $10,000 into $1 million (or more) in 2021. With further developments and updates in the pipeline, these digital currencies could continue their exponential growth in 2022 as well and thus are worth keeping an eye on.
Speculations in the cryptocurrency market can push prices of digital assets to unsustainable highs, which is what makes the market so volatile. Therefore, before investing in any cryptocurrencies, always do your own research and consider your risk potentials.