We haven't looked over all 7,000 cryptos and likely never will. But of the cryptocurrencies that we track, Dogecoin (DOGE), Ethereum (ETH), Uniswap (UNI), Chainlink (LINK), and Ripple (XRP) are our five favorite investments right now. Here's why.
Thanks to the development of advanced blockchain technology, several cryptocurrencies are stealing the media highlights as well as investors' attention. Today the whole world is going crypto-way, accepting it as the best investment asset available. And many individuals and institutions have been investing in cryptocurrencies over the past few decades.
With their unique technology, use cases, goal, and increasing popularity, various cryptocurrencies have now successfully become investor favourites. Here are five cryptocurrencies that are the favourites in the crypto market right now.
5 Favourite Cryptocurrencies Right Now
1. Dogecoin (DOGE)
2021 has been a splendid year for the infamous "meme cryptocurrency" so far, with a whopping surge of almost 7276%. Moreover, by hitting an all-time high of $0.7376 on May 3, DOGE has become a favourite cryptocurrency in the market right now.
Dogecoin was hailed on multiple social media channels and was endorsed by various celebrities such as Snoop Dogg, Gene Simmons, and, most notably, the tech icon Elon Musk. Multiple periodic tweets by the Tesla CEO about Dogecoin and its prominence as the best cryptocurrency has catapulted DOGE into the fame of being one of the market favourites.
The latest price surge was brought about by Musk's tweet, where he stated that he has started working with DOGE developers to enhance system efficiency. Apart from this, Dogecoin also has several practical use cases as more than 1300 merchants have started accepting it for payment. For these reasons, this is still one of our favorite cryptos right now.
Check Out: Will Dogecoin Make Me Rich?
2. Ethereum (ETH)
Another one of our favorite cryptocurrencies right now is Ether. Ethereum holds its fame as the first crypto coin to introduce smart contracts that allowed developers to create decentralized applications powered by blockchain technology. Ether is the cryptocurrency that underpins the Ethereum network.
Ethereum, which aims to be the "world computer," is entirely different from other cryptocurrencies that decentralize money. ETH seeks to decentralize the whole internet by replacing servers with a global system of nodes and creating one computer for the entire world.
Despite its competitors, the digital asset is still the largest go-to blockchain for DeFi as it processes transactions faster and at lower fees. Ethereum is one of the top favourite cryptocurrency right now, thanks to the $13 billion worth of value locked in Ethereum smart contracts and the emergence of DeFi as the most dynamic sector in the blockchain space.
The whole crypto community is now waiting for the launch of Ethereum 2.0, also known as Serenity which will address long-standing issues like speed, scalability, and efficiency of the Ethereum network.
This investor-favorite cryptocurrency is trading at $2,668.62, as of writing, with a market cap of $309,395,686,205. Experts predict that with the launch of ETH 2.0, the price of Ethereum will explode tremendously by the end of 2021.
Read Also: Will Ethereum Reach $10,000?
3. Uniswap (UNI)
Uniswap is the largest DEX in the world, with a market cap of $12,641,071,544, as of writing. Being the number one Ethereum dApp in the market, Uniswap has seen a significant rise in its price and demand this year. It has an ERC-20 token that uses Ethereum's blockchain to process transactions.
Uniswap is known for its high liquidity pools. Investors send their cryptocurrency funds to a Uniswap smart contract to earn interest in their holdings. These investors are known as Liquidity Providers, while the smart contracts that hold their cryptocurrency are Liquidity Pools. These liquidity providers are necessary for Uniswap to operate and provide liquidity to its users.
Uniswap offers various benefits over traditional cryptocurrency exchanges. One is the easy swapping feature where Uniswap investors can easily swap their cryptocurrencies directly from Ethereum wallets eliminating the involvement of intermediary exchanges. It adds a layer of security that centralized exchanges cannot achieve and lowers the risk of hacking.
After prominent stock brokerages like WeBull and Robinhood stopped the trading of Gamestop (GME), Uniswap has become the favourite cryptocurrency of investors. Thanks to its decentralized nature, no one can suspend the trading of assets on Uniswap.
4. Chainlink (LINK)
Following Ethereum's footsteps, Chainlink was designed to ensure that smart contracts can easily access real-world data accurately. It aims to bring interoperability to the blockchain industry by using oracle networks.
Unlike other digital assets in the decentralized finance space, Chainlink has an entirely different purpose, as it aims to enhance the whole blockchain network capabilities. This has signalled increased investor interest for LINK and positioned it as one of the top five favourite cryptocurrencies right now.
Chainlink oracles can be referred to as middleware, which acts as an intermediary to translate data from the real world to smart contracts on the Chainlink network. While certain decentralized apps can only run on the Ethereum network, Chainlink's infrastructure is compatible with all public and private blockchain environments. This way, Chainlink paves the way for cross-chain connectivity in the crypto space.
Adding to its popularity, on March 22, 2021, Chainlink took to Twitter and announced the integration of AI Autonio, the Decentralized Finance (DeFi) liquidity protocol, which will enhance the Chainlink ecosystem. With Chainlink's ability to deliver real-world pricing data to smart contracts, it can also be helpful for several lending and borrowing platforms.
LINK trades at $29.1 as of writing. But the new upgrade Chainlink 2.0 is expected to boost the asset value to $75 by the end of this year.
Check Out: Is Chainlink a Good Investment?
5. Ripple (XRP)
Ripple (XRP) has become the favourite cryptocurrency of financial institutions and liquidity providers all around the world today. It remains the only centralized crypto in the world that is directly interlinked with the banking community.
Ripple XRP has a unique transaction protocol that has multiple functionalities. It acts as an interchange mediator in moving cryptocurrencies, fiat currencies and helps in managing a large number of transactions at relatively lower fees.
Ripple has thus become the go-to blockchain platform for cross-border transfers in a faster and more affordable way. The company's latest flagship product that gained much traction is on-demand liquidity (ODL). It helps people, banks, and other money transfer organizations deliver instant cross-border payments without pre-funding the new markets.
Ripple XRP is a viable long-term investment because of its growing acceptance across the industry. This forward-looking firm has successfully built an established consumer niche and has more plans to extend its presence in conventional capital markets.
Currently trading at $1.18, XRP is expected to hit a value of $2 by the end of this year, thanks to its plan to expand its network, the DeFi and smart contract adoptions, and the favourable proceedings towards Ripple in the SEC lawsuit.
Favourite Cryptocurrencies: The Bottomline
Both institutions and investors' newfound interest in the crypto space has initiated a bullish run for several cryptocurrencies in 2021. This overwhelming growth of the blockchain and crypto space has got investors and traders actively looking for the most promising cryptocurrencies for investments.
The cryptocurrencies mentioned above are the top favourites in the crypto market right now, and any of these can be a highly viable long-term investment option.
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