Bitcoin, Ethereum, and more: Here are the 5 best coins for 2021
With the COVID-19 pandemic wrecking up the global economy for the better part of 2020, many investors have resorted to cryptocurrencies as a safe haven investment. This is apparent because the overall crypto market cap surged from $192 billion to $563.50 billion. So, with Bitcoin about to breach its all-time any time now, you should be extremely bullish on the cryptocurrency market.
With 2021 just around the corner, let’s check out our Five Favourite Cryptocurrencies of 2021.
While Bitcoin started the year at $7,130, it managed to surge by over 170%. As of now, it is trending a little below $19,500, as of press time. However, with BTC approaching all-time high levels, it is in a prime position to chart levels never seen before. Dan Held, the Growth Lead at Kraken exchange, once put up a LinkedIn post soon after BTC started flirting with all-time-high levels – “If you are reading this you are still early to Bitcoin.”
Many expect BTC to double its value over 2021, at the very least. The main driver behind this unprecedented growth is institutional adoption. CoinShares reported that investors had bought around $429 million worth of BTC and other crypto assets just last week. Plus, MicroStrategy, which is probably the biggest institution actively investing in Bitcoin, has boosted their total Bitcoin holdings to a staggering $1.1 billion.
The smart contract platform managed to outperform Bitcoin handily by boosting its price by ~350% over the course of 2020. ETH even managed to breach the $600 mark but has since faced a correction to $585.
Going into 2021, Ethereum will continue to ride the DeFi wave. 2020 has been the year of DeFi and 2021 looks to be continuing the trade. Over this year, the total value locked up in DeFi has jumped from $675 million to $15 billion. That’s a staggering >2100% rise in price. If 2021 does even half of what 2020 did DeFi-wise, the sheer amount of value and utility that it could bring into Ethereum is pretty mind-bogglingly.
Ripple has had a busy 2020, having expanded to more than financial providers across 40 countries, including Banco Santander (SAN) and American Express (AXP), JP Morgan (JPM), HSBC Holdings (HSBA), HDFC Bank Limited (HDB), and the Bank of America (BAC). FRMO Corp had singled out XRP as one of the more intriguing cryptocurrencies of 2020.
XRP's price reflected this positive sentiment since it jumped from $0.19 to $0.45, reaching a 2020-high of nearly $1. With increased adoption and its ODL platform getting more popular than ever before, we can expect XRP to rise even more in 2021.
Litecoin has nearly doubled in value, having jumped from $41 to $80.50. We can expect Litecoin to go into triple digits and be a dark horse contender for the “biggest jumper” in 2021. The reason being, we are incredibly bullish about Bitcoin in 2020, and, as many have noted, Litecoin tends to follow the premier cryptocurrency. The reason being, as Litecoin founder Charlie Lee puts it, while one can use Bitcoin to move large amounts of money, the transaction fees make it impractical to move smaller sums. This is why Litecoin usage is complementary to Bitcoin's.
Also, Litecoin Foundation, the nonprofit associated with Litecoin, acquired 9.9% of Germany’s WEG bank. This, in essence, opens the door for LTC to participate in mainstream banking.
#5 Bitcoin Cash
Bitcoin Cash could be one of the more exciting picks for 2021. Crypto Ground, an independent publishing house that provides Cryptocurrency & Blockchain Technology News, believes that BCH will reach $3,067 in a five-year time-frame. Quite like Litecoin, we think that Bitcoin’s bullish 2021 will impact BCH’s price action positively.
We feel that these five coins are well-poised to rule the crypto roost in 2021. If you want to check out more such reports, then do read up our cryptocurrency trading articles.
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