While the entire world has been battling COVID 19 pandemic, with USD slumping by over 5% in 2020, crypto has been at the forefront of the financial crisis. Today, over 50 million people are trading in cryptocurrencies globally via verified accounts, and it's pretty remarkable to see how the digital asset ecosystem has grown.
Bitcoin, the leading cryptocurrency, stole the show towards the end of 2020 and then in 2021, crossing the most anticipated $ 58,000 K mark on Feb 21st. However, lately, it's going through a second consolidation period, which has given other coins a chance to shine.
The game has changed and institutions can no longer ignore cryptocurrency markets. Recently, Square bought $170 million worth of bitcoin. Square said it represents about 5% of the company’s total assets as of the end of 2020. “The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” the company said in its earnings release. Its CEO, Jack Dorsey, has also been an advocate of the digital currency.
It wasn’t long back when Jack Dorsey predicted that bitcoin will be the single currency of the internet in the future, in a report from The Times of London. “The world ultimately will have a single currency, the internet will have a single currency. I personally believe that it will be bitcoin,” Dorsey said in the article.
Back to today, the market appears poised to break some really exciting levels. This is not only good for bitcoin, but is also godsend for the Altcoin market. If you have been following the crypto markets for some time, you know there's usually a pivot to Altcoins once bitcoin has rallied, however, given how more sophisticated the markets have become, it's unlikely that this rising tide will lift all boats. Only some altcoins are likely to capture those gains you're striving for.
This then begs a very important question- which ones? Well, that's exactly what we are going to cover. We’ll be taking you through our top cryptocurrency picks for 2021. Picks that are not only well diversified across tech market cap and use cases, but all cryptocurrencies that really could explode this year, and who knows they might as well be the next big cryptocurrencies, so, fasten your seat belts.
#1 Bitcoin (BTC)
We're going to have bitcoin on the top with one BTC trading at $47,396.33. bitcoin is a 1 trillion dollar asset. It is more valuable than Tesla and Facebook. It's the number one crypto that everyone knows and anytime a new person gets into the crypto market they usually end up buying bitcoin first. bitcoin is the first decentralized digital currency, a digital coin you can send through the internet. They are transferred directly from person to person via the net without going through a bank or clearinghouse.
Also, what makes it unique is that there can only be 21 million bitcoins mine, and currently we're at 18.5 million, so, once that 21 million threshold is hit, no more bitcoin can be mined. That's where basic supply and demand comes in. If we have a limited supply or no supply of anything, the price will go up. Once we reach that 200 million threshold, no more bitcoin can be mined or bought, so only the people who have bitcoin can sell it to other people. And from there we don't know how high the price will go up. Based on estimates, it is expected to go up to $100- 2,000.
With the USD and several other currencies losing more and more of their value every day, people are looking for other places where they can put their money in whose value won't drop based on the government or other entities. That's where people are putting their money into bitcoin as of right now. The main use case for bitcoin is the transfer of money holding or making payments.
#2 Ethereum (ETH)
Coin number six that is potentially going to do well is Ethereum. Presently trading at $1,590.68 per ETH per token. We have seen in the last few months some of the most notable investors in
The cryptocurrency space has come out in support of Ethereum as an investment.
Not to forget that Ethereum recently crossed the $2,000 mark on 20th Feb 2021, setting a new all-time high and could easily go further if the momentum continues. As with any crypto asset that surges to a new all-time high, longer-term price predictions start emerging and there has been a huge one from economist and Global Macro Investor CEO Raoul Pal. The investment strategist sees big things for Ethereum with a bold $20,000 price prediction.
But what is Ethereum actually? And why does it potentially have value? Ethereum is trying to do things differently. It doesn't have a fake supply, it’s not the hardest form of money we have but think of it sort of like a global supercomputer, where anybody, anywhere can build on top of without the permission of a middleman.
In short, Ethereum is a public open-source Blockchain-based distributed software platform that allows developers to build and deploy decentralized applications. While bitcoin for the first time in human history gives you the option to be your own bank, Ethereum gives you the option for banking type services like credit and lending without the need for a middleman. There's a lot of value potentially there, and finally, with the full Ethereum 2.0 rollout happening within the next few years for the network's scalability, there is a lot to look forward to with Ethereum.
Learn More So, reading about Etherum has intrigued you know more about it? Check out the beginner’s guide to Etherum here
#3 Chainlink (LINK)
Coin number three for Altcoins which could potentially explode in this next year is Chainlink. Right now with a market cap of almost $11B, with one LINK token trading at about $26.12 per coin per link. Chainlink is providing a network of decentralized oracles for Blockchains like bitcoin, Ethereum to access outside information. Chainlink has a reputed system that guarantees the data is accurate, ensuring the validity of smart contracts.
Once an oracle's data is verified, they are paid with Link, Chainlink's cryptocurrency of choice. This system builds confidence in the platform, and the growing popularity of decentralized finance, or DeFi, helps make Link a contender for the best cryptocurrency. The metrics tweeted out by the organization itself in 2020 was a year of record growth for the Chainlink network.
#4 Aave (AAVE)
Currently the cryptocurrency for your go-to decentralized finance, lending and borrowing should be AAVE. Right now trading at $351.90 per Aave per token. What is it Aave about, and why does it potentially have value long term? Aave is a decentralized lending system that allows users to lend, borrow and earn interest on crypto assets, all without a middleman. Wellz, how is it doing this exactly without a third party? Running on the Ethereum blockchain, Aave instead is a system of smart contracts just automated contracts that enable these assets to be managed by a distributed network of computers running its software. This means Aave users do not need to trust a particular institution or person to manage their funds. They only need to trust that its code will execute as written.
Very interesting, but can we trust the code? Well the Aave protocol has been audited and secured. And the protocol is completely open source which allows anyone to interact with the user interface client API or directly with the smart contracts, so it's audited. People can use it and in fact Aave has seen massive utility on the protocol over $4B right now of people depositing their assets peer-to-peer, lending and borrowing without any centralized middleman. While in the US or other big nation's banks this kind of thing works fine, especially in the underdeveloped parts of the world this could be huge for giving average people financial freedom.
And what can we expect from them in the future? Well at the end of last year Aave raised over 25M $ to bring DeFi to institutions. Aave CEO Stani Kulechov says the investment will help Aave expand into the Asian markets and bring DeFi closer to institutional use.
Learn More Want to learn more about DeFi and invest in it? Check here
#5 Cardano (ADA)
Coin number five is Cardano and their ADA token currently one ADA is trading at $0.9455 per coin with a market cap of just over 29 B. As Ethereum inevitably gets bigger, the congestion on the network keeps getting higher. Ethereum users developers products will spill over into Cardano as a more scalable option. While Cardano doesn't have the dAap ecosystem as Ethereum does, Ethereum is killing it in that aspect, Cardano like Polkadot has one of the creators of Ethereum who left to found his own project.
Cardano differentiates itself from other dAap platforms in a few ways. So what is Cardano? Cardano differs from other projects by emphasizing a research-driven approach to design, aiming to achieve an academic rigour it believes will propel the adoption of its technology. IOHK, the company that built Cardano, has published more than 90 academic papers outlining its technology, got them peer-reviewed and inked partnerships with global universities in the process.
That is a significant differentiator and then of course the two other big ones. For example, Cardano's consensus algorithm, Ouroboros, has been deemed “provably secure” by a
process of formal review. Additionally, Cardano's code is written in the formal specified
Haskell programming language commonly used in the banking and defence sectors.
Coin number six is Polkadot currently trading at $33.37 per token per DOT with a market cap of just over $30B. Created by Gavin Wood, one of the co-founders of Ethereum, he invented Solidity, which is Ethereum's native programming language. Later, he left Ethereum and started Dot. Think of polka dot like Internet of Blockchains offering not only interoperability so different Blockchains can connect and talk to each other, but also like Ethereum its own thing, a dApp platform where we're seeing an ecosystem grow on Polkadot as well. This ecosystem is expected to get bigger and bigger like we've been seeing over the last year.
You might want to read , Polkadot's founder looks back on the year, teases Substrate 3.0 in early 2021.
And finally...our two honourable mentions:
Dogecoin is currently trading at $0.055022 per token per DOGE with a market cap of just over $2.5 B. But what is dogecoin? Well widely known in the cryptic community, Dogecoin is considered more of a meme than a serious cryptocurrency. It was created in 2013 and named after the popular meme of a Shiba Inu. The creators of the cryptocurrency used Litecoin technology to power Dogecoin.
A software engineer at IBM, Bill Marcus saw the buzz Dogecoin was getting and developed software for Palmer to accompany his product. From there the cryptocurrency jumped a staggering 300% after only two weeks of launch. However, Dogecoin is an inflationary coin. Meaning there is no finite number of Dogecoin to be mined.
Right now is trading at $183.82 per LTC per token. Litecoin was created by Charlie Lee, a former Google employee in 2011.It was designed to be a peer-to-peer cryptocurrency and draws in a number of foundational similarities to bitcoin. Although Lee's intention was to solve some of its perceived issues like transaction times fees and concentrated mining pools.
Originally it was announced to be a light version of bitcoin creating the silver to bitcoin's gold. Litecoin differs from the bitcoin protocol in terms of the hashing algorithm used, it uses the memory intensive script proof of work. Mining algorithm script allows consumer grade hardware such as GPU to mine those coins, prioritizing speed. Litecoin features faster transaction confirmation times and improves storage efficiency. As an open source project, Litecoin is a commerce centric digital asset that aims to be the ideal payment method for merchants and spenders offering instant transaction confirmations and secure storage.
*We at Glyph cover everything crypto. News, reviews, overviews and other hot picks. We are not financial advisors, hence are not qualified to give you financial or investment advice, so, please only view this as educational. We must implore you to do your own research.
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