Top 10 Cryptocurrencies That Will Explode in 2021

Last Updated July 23rd 2021
8 Min Read

The world of cryptocurrencies is constantly attracting investors looking to diversify their portfolios with emerging assets. Several global companies currently accept digital assets as legitimate means of payment, making now a good time to invest in this fast-expanding sector.

Blockchain technology, which powers cryptocurrencies, is helping the world achieve decentralization of financial authority significantly. This powerful technology has paved the way for next-gen offerings such as non-fungible tokens and decentralized finance (DeFi)

Before discussing the top 10 coins that will explode in 2021, let us quickly understand what exactly DeFi is and why you should invest in these cryptocurrencies that are beaming with potential.

Contents:

DeFi: An Emerging Sector

Reasons To Invest in Cryptocurrencies

Top 10 Cryptocurrencies That Will Explode This Year

In Conclusion

DeFi: An Emerging Sector

Decentralized finance is an umbrella term for various applications and projects in the public blockchain sector, disrupting the traditional finance world. Inspired by blockchain technology, DeFi is generally referred to as financial protocols built on blockchain networks, typically using smart contracts. Smart contracts are automated enforceable agreements that do not require intermediaries to execute. Anyone with an internet connection can easily access these contracts. 

DeFi consists of peer-to-peer (P2P) protocols and applications developed on decentralized blockchain platforms that require no access rights for seamless lending, borrowing, or trading of financial tools. Most prevailing DeFi applications are built on top of the Ethereum network, but many alternative public networks are emerging that deliver superior security, speed, scalability, and lower costs.

DeFi is growing into an entire ecosystem of working applications and protocols that deliver value to millions of global users. Assets worth over $30 billion are currently locked in DeFi ecosystems, making it one of the fastest-growing segments within the larger blockchain space.

Reasons To Invest in Cryptocurrencies

With their decentralized nature, crypto assets are changing traditional financial systems to the point of no return, facilitating transactions across borders at lower costs and faster processing times. Within just over a decade since the inception of Bitcoin, the crypto sector has grown to become a trillion-dollar industry, and this is just the beginning. 

Investors and traders have to use exchanges (centralized or decentralized) to buy, sell or hold their tokens. As cryptocurrencies increase in fame, the adoption rates will go higher, making exchanges and their native assets a central part of the crypto ecosystem. 

According to many experts and analysts, native crypto-assets of CeFi exchanges and DEXs are highly likely to rally in 2021. Keeping in mind key considerations, here are the top 10 cryptocurrencies that could explode in 2021.

Top 10 Cryptocurrencies That Will Explode This Year:

  1. Binance Coin (BNB)
  2. Pancakeswap (CAKE)
  3. Uniswap (UNI)
  4. Cream finance (CREAM)
  5. MDEX (MDX)
  6. Aave (AAVE)
  7. Bancor (BNT)
  8. KuCoin Token 
  9. WazirX (WRX)
  10. ASD (BTMX)

 

1. Binance Coin (BNB)

Binance Coin (BNB) is a cryptocurrency created by the popular Binance Exchange. Notably, Binance is by far the largest crypto exchange in the world.

BNB has two main functions. It works as a ‘discount token’ to pay for trading fees on the exchange. Secondly, it fuels the Binance Smart Chain (BSC). Back in 2017, Binance Coin was only a utility token that would give a trader a discount on trading fees. However, later in September 2020, Binance launched the Binance Smart Chain, a platform built for smart contracts, decentralized applications (dApps), and DeFi services.

Currently, the BSC is the second-largest DeFi platform, making BNB a valuable asset to hold.

Check Out: Is Now A Good Time To Buy Binance Coin? 

2. Pancakeswap (CAKE)

PancakeSwap is a BSC-powered decentralized exchange that allows users to swap BEP-20 tokens securely and efficiently. It facilitates a decentralized trading experience combined with liquidity pools. PancakeSwap is one of the largest dApps on the Binance Smart Chain and is regarded by many as a platform with endless potential. 

PancakeSwap’s interface is similar to other DEXs. It is easy to use, and you do not need any prior experience to explore the basic trading functionalities. The platform is built to allow users to maximize their profits. 

One of the main benefits of PancakeSwap is its low fee structure. The exchange does not rely on gas prices due to its cutting-edge technical capabilities. This means that anyone can trade on PancakeSwap at a fraction of the cost of other well-known exchanges.

3. Uniswap (UNI)

UNI is the native token of the Uniswap decentralized exchange. Uniswap is the largest DEX in terms of market capitalization. It is also one of the most popular Ethereum dApps in the market. The platform plays a crucial role in advancing innovation across the crypto market. Notably, the exchange has experienced record growth this year and is likely to continue its growth.

The Uniswap protocol allows buyers and sellers to exchange ERC-20 tokens in a permissionless and trustless manner. ERC-20 tokens reside on the Ethereum blockchain and are interoperable between all ERC-20-compliant exchanges, wallets, and dApps. These tokens have witnessed a sharp increase in use since DeFi has boomed over the past year.

As one of the leading DEXs, Uniswap represents a notable shift in the market. It offers traders a safer alternative to centralized exchanges that operate in a custodial way. DEXs are non-custodial, so they do not hold user funds directly. This way, Uniswap offers the benefits of blockchain and eliminates the shortcomings found in centralized platforms. 

Read Also: Pros and Cons of Investing in Uniswap 

4. Cream finance (CREAM)

Cream Finance is a multipurpose DeFi platform built on Ethereum. According to its website, it is “a lending platform based on Compound Finance and an exchange platform based on Balancer Labs." Cream Finance aims to push the boundaries of DeFi by building and integrating better protocols on existing ones. 

CREAM is an ERC-20 token built on the Ethereum network. CREAM tokens are rewarded to those who interact with the protocol by either lending, borrowing or providing liquidity. CREAM token holders would also have governance powers over the exchange once it transitions to a DAO, which is currently in progress. 

Acquiring CREAM is a quick and easy way to become a part of this ecosystem.

5. MDEX (MDX)

Mandala Exchange (MDEX) is a leading decentralized exchange built on the Huobi chain. It uses automated market maker (AMM) technology for fund pools. MDEX plans to build a creative DEX, DAO, and IMO/ICO on ETH and Heco to enable a configuration and asset selection that is more reliable for users.

MDEX employs mixed (transaction and liquidity) mechanisms in its mining operations. Like other cryptocurrencies, MDEX tokens (MDX) can be used for various purposes. It serves as a medium for voting, trading, repurchase, fundraising, etc.

Within barely two months of its existence, MDEX recorded $2 billion as the total pledged amount of its liquidity pool. 

6. Aave (AAVE)

Aave is a decentralized lending protocol that is significantly driving interests in the DeFi sector to new heights. It was one of the first enterprises to let users borrow, lend, and earn interest on cryptocurrencies. Notably, there is no need for a middleman in Aave because the entire operation is run autonomously through smart contracts built on the Ethereum blockchain.

Since its launch, Aave developers have worked hard to make the network accessible to all. The open access and ease of use make this platform ideal for both retail and institutional investors. As a result, Aave has advanced to become one of the most trusted DeFi applications in the world.

Aave offers numerous benefits to users. For one, they can gain transparency over the entire network’s lending activities and processes. Traditional lending services operate privately, leaving users unaware of their activities related to the funding. With Aave, everything on the blockchain is open for the community to see. 

Don't Miss: AAVE Price Predictions

buy Aave

7. Bancor (BNT)

Bancor is a blockchain-powered protocol that enables users to convert various virtual currencies directly and instantly instead of exchanging them on crypto exchanges, such as Binance or Coinbase. BNT is the primary token of the Bancor network. 

The Bancor Smart Wallet supports all ERC20 compliant tokens and EOS tokens. Trading on this platform is fast and secure. 

Notably, Bancor does not require any registration or sign-up. It is an open financial marketplace without any barriers to entry, and users do not need permission to use the open-source protocol. Bancor trading also helps manage users' protected positions in Bancor pools, track and analyze their returns. 

8. KuCoin Token 

Launched in 2017, KuCoin is a well-known exchange in the crypto industry. It offers competitive fees and trading costs. The platform has grown considerably from its early days of offering only crypto to now crypto trading. KuCoin now has a range of services, including a P2P exchange capability, credit or debit card purchases, and even their own share tokens that are funded by trading fees.

KuCoin has a wide selection of crypto assets available for trading. There are over 200 cryptos to choose from, with more being added regularly. KuCoin Token (KCS) is currently trading at $9.25. 

9. WazirX (WRX)

WazirX is one of the most popular crypto exchange platforms in India. It is regarded as a go-to place for Indian crypto investors. With an ever-growing user base, WazirX offers 100+ cryptocurrencies to trade, including its WRX tokens. 

WRX is trading at an affordable price of $1.58 at the time of writing.

10. ASD (BTMX)

AscendEX (formerly called BitMax) is one of the leading digital asset platforms founded by a group of Wall Street quantitative trading veterans in 2018. It currently services retail and institutional clients in more than 200 countries around the globe.

With a solid control risk mindset, the AscendEX team has applied traditional financial market principles to develop a high-performance order matching system and digital asset security management. It offers a dynamic combination of hot and cold wallet solutions. The platform mainly aims to create a secure and reliable experience and a consistent source of liquidity for its users. 

In Conclusion

Cryptocurrencies are taking over the world of finance, and this is only the beginning. If you are looking to invest in this emerging sector, now is a great time to do so. These ten crypto tokens are poised for a bull rally in 2021. 

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