Cheap Cryptos to Buy Now
Over the last two years, the market has managed to recover from the 2018 bear market. With the influx of institutional investors and more use cases entering the market, 2021 may bring unprecedented price action to the crypto space. Today we will focus on five cryptocurrencies that we believe are going to explode in 2021 – XRP, XLM, DASH, BNB, and XTZ.
We have put together a list of the cheapest Cryptos to look at in 2021.
So without further ado…
5 Cheap Cryptocurrencies to Consider
1. Ripple - XRP attracting institutional interest?
Ripple seems primed for institutional adoption in 2021. Financial risk management firm, FRMO Corp, has singled out XRP as “one of the more intriguing cryptocurrencies” in its 2020 shareholder. As per FRMO:
“If the transaction velocity of XRP were to rise greatly, the number of currency units would decline greatly, thereby creating a substantial return even if the coin itself did not experience an increase in market capitalization. It would, however, experience an increase in value per unit.”
In simple words, Ripple’s token valuation can increase with rising utility since it will equate to a significant increase in the total amount collected as fees. Since Ripple burns the fees collected, it will result in a gradual fall in circulating supply. If demand outstrips the available supply, it will result in increased token valuation.
2. Stellar - XLM looking forward to a stellar 2021
Ripple and Stellar may act like archenemies, but XLM also promises to have a fantastic 2021. One of Germany’s oldest banks, Bankhaus von der Heydt (BVDH), announced that they would be issuing a euro-backed stablecoin on the Stellar blockchain. The backing from an established bank in one of Europe’s largest economies appears to be a game-changer. Lukas Weniger–the Head of Business Development of BVDH, said:
The stablecoin is a very sensitive product, and it requires a lot of trust from the users at the end of the day. So if we look at other projects, for example, Tether, there’s a kind of a trust issue. It relates to the fact Tether is not publishing their audit reports and stuff like that.
Since the beginning of the year, XLM has jumped from $0.045 to $0.158. However, with more usage and increased utility, XLM could conquer the $0.50-mark and try to surpass its all-time high levels of $0.94.
3. Tezos - XTZ to ride the DeFi train
While DeFi exploded in 2020, we expect it to continue growing and reach newer heights in 2021 since it remains the most practical use case of blockchain technology. While Ethereum remains the platform leader, it has several shortcomings that prevent DeFi from achieving true scalability. Tezos is a smart contract platform that utilizes the delegated proof-of-stake (DPoS) algorithm. It could present a viable alternative for developers who may want to build their applications.
Currently, DeFi developers have to pay a humongous amount of gas fees to Ethereum. As such, the size and complexity of smart contracts are severely limited due to these gas constraints. To counter this problem, Tezos finished its Delphi upgrade in November to reduce its smart contract gas fees by 75% and attract developers. According to Delphi's developers, the upgrade is “crucial to enable novel applications on Tezos that target areas like DeFi, collectibles, and gaming.”
Back in April 2020, the Bitcoin Association Switzerland, Tezos Foundation, and multiple partners issued the first tokenized version of bitcoin on the Tezos blockchain, tzBTC. This effectively kickstarted DeFi on Tezos. With the Delphi upgrade, we can expect more DeFi activity, which should increase overall usage and blockchain valuation.
4. Dash - Benefit from various factors
Priced at $89.50, Dash isn’t exactly a “cheap coin.” However, we believe that many people are currently sleeping on the privacy coin. Dash could have a big 2021 due to the following reasons:
- Through a collaboration with StakeHound, Dash holders will now have means of accessing DeFi services.
- Hyperinflation in Latin American countries like Venezuela has forced their citizens to lose faith in their currency and turn to crypto coins. The two coins that they have mostly turned to are Bitcoin and Dash.
Despite a heavily bearish December, Dash has more than doubled its value since the beginning of the year, going up from $40.75 to $88.50.
5. Binance Coin - BNB to rise steadily throughout 2021
Binance Coin benefits from three main factors:
- Its association with Binance, probably the most beloved exchange in the crypto space. BNB tokens are used to buy assets and pay exchange fees.
- It's the native coin of Binance Chain.
- The quarterly token burning process that it goes through which routinely shrinks its circulating supply.
While not as expensive as Dash, BNB is still a lot more expensive than the rest, trading for $27 as of press time. However, Binance does $16 billion in trading volume per day, making BNB one of the busier tokens in the whole crypto ecosystem. With its increased usage and with Binance Chain attracting some of the most exciting projects, BNB could be on the course of having a monstrous 2021.
Binance Coin has nearly doubled in valuation from the beginning of the year, going up from $13.60 to $27.
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