Which Cryptocurrencies Will Perform Best in 2021?
According to crypto experts, Bitcoin, Cardano, and Ethereum are the best performing cryptocurrencies in 2021.
With Bitcoin reaching its all-time high, 2020 has been outstanding for the cryptocurrency market. However, we believe that 2021 is going to be even better for 2021. Global markets have suffered tremendously during the pandemic, which has prompted folks to turn to cryptocurrencies as a safe haven asset. While the economic meltdown has improved and will continue to improve in 2021, we believe that the crypto market has enough bullish momentum, for now, to sustain itself and even thrive as we head into the new year.
2020 - The year where cryptocurrency markets shined
2020 has been a year to remember for cryptocurrencies. After 2018’s bear cycle and 2019’s consolidation, business picked up fast this time around. The global crypto market has exploded from $193 billion to $566 billion. There were three main factors behind this near 300% rise.
- Firstly, as we have already mentioned, people tend to look at cryptocurrencies as a safe haven asset. This has helped it gain immense valuation and credibility in the middle of the economic collapse.
- Extending the first point, institutional investors have opted to invest more in cryptocurrencies to secure and grow their wealth.
- The DeFi revolution has brought unprecedented use cases and utility into the crypto ecosystem.
So, having said that, let’s look at five cryptocurrencies expected to continue their upward momentum in 2021.
5 Top-Performing cryptocurrencies in 2021:
5. Binance Coin
#1 Bitcoin will rule 2021
Bitcoin is officially in uncharted territory right now. As of press time, Bitcoin has broken past the $22,500-level and is well on its way towards $30,000.
Here is the scary part.
Even the most conservative analysts are predicting BTC to reach at least $30,000 in 2021. The more optimistic ones are hoping BTC to reach $100,000 by the end of 2021. Regardless, what this means is that BTC should definitely be on the top of your shopping list right now. With institutions buying up huge blocks on BTC over time, this upcoming “supply crunch” will be an important factor as demand for the premier cryptocurrency goes through the roof.
#2 Cardano is a dark horse in the game
Over the last year, there has been a massive demand for DeFi applications, which has caused a significant strain on the Ethereum blockchain. As such, developers are always looking for an alternative to Ethereum. Cardano could be a possible solution.
Cardano is currently moving into its third development phase called “Goguen.” In this phase, Cardano will actively work on smart contract integration and decentralization. In this phase, ADA contracts will support certain conditions, such as making users hold tokens for a fixed period to complete a contract.
ADA rose from $0.032 to $0.17, going up by >500% throughout 2020. If Cardano rides the DeFi momentum, it may even reach $1.
#3 Ethereum is going to have a strong 2021
Ethereum will continue its 2020 surge moving into 2021, mainly due to the Ethereum 2.0 upgrade and it being a DeFi platform leader. However, another major factor that should boost ETH’s price is institutional interest. In fact, the Chicago Mercantile Exchange (CME) Group announced its plans to launch ETH futures catering to its institutional investors. This will be launched in February 2021. This could push ETH to $1,000.
Read Also: How to Buy Ethereum - Beginner’s Guide 2021
#4 Tezos is another great DeFi alternative
Tezos gained a whole dollar in its valuation over 2020, having gone up from $1.34 to $2.33. It uses the delegated proof-of-stake (DPoS) algorithm, which allows it to be far more scalable and flexible. Along with that, Tezos has recently reduced its smart contract gas fees by 75% via the Delphi upgrade. This should make it more DeFi friendly and an alluring platform for developers.
#5 Binance Coin may become the most used coin in the cryptospace
Binance Coin has more than doubled throughout 2020, having gone up from $13.60 to $30.50. We can expect the price to rise up considerably throughout 2021 for one simple reason – its association with Binance.
Binance is one of the most popular exchanges in the world. In the last 24 hours, Binance did a staggering $12 billion in trading volume. As the cryptospace gets bigger, Binance will experience a massive influx of new users, which would also drive BNB’s usage through the roof. What this means is that BNB could be on the course of having a monstrous 2021. Do keep an eye out for this coin.
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