As we continue enjoying the bull run we’re currently experiencing, many investors are looking toward the next one wondering which cryptocurrencies are likely to bring about good returns. With some industry knowledge, we’ve put together a list of 10 cryptocurrencies set to explode in 2021. Get stuck into the list below and see which spark your interest, and whether they sound like the right investment avenues for you.
1. Bitcoin (BTC)
First and foremost, investing in the original cryptocurrency is always a good idea. Operating since 2009, Bitcoin has experienced massive gains and tends to lead the market through bull and bear trends. Bitcoin also received mass interest from traditional and institutional investors in 2020, which is only likely to increase.
The cryptocurrency also presented a spectacular resistance to the market crash, bouncing back from $4,700 in March to an all time high of $19,850 set in November. Bitcoin is definitely worth keeping your eye on.
2. Ethereum (ETH)
Coming in at number two on our list, and coincidently number two on the list of biggest cryptocurrencies based on market cap, is Ethereum. Also showing incredible resistance to market crashes, Ethereum held strong throughout the turbulent year that was 2020.
Not only is Ethereum the foundation for DeFi (decentralized finance), crypto’s latest obsession, the platform also provides the foundation for several top 10 cryptocurrencies. Another reason to keep an eye on this cryptocurrency is the upcoming launch of ETH 2.0. The platform already has $475 million worth of ETH locked in, illustrating the high initial interest.
3. Litecoin (LTC)
Litecoin also takes a position in the top 5 cryptocurrencies based on market cap, and with good reason. Launching two years after Bitcoin, Litecoin set out to offer a faster and cheaper alternative. It’s no wonder that the cryptocurrency is referred to as Digital Silver (next to Bitcoin’s Digital Gold status). Since its inception the cryptocurrency has grown over 8,000%, an impressive feat for an asset still in its first decade.
Litecoin also gained some mainstream media attention after PayPal listed it as one of the cryptocurrencies it is set to support. As Litecoin continues with their ambitious innovations, we could be seeing a new privacy version in the coming months.
4. Monero (XMR)
Speaking of privacy coins, Monero is another ray of sunlight in the crypto department. Launched in 2014 the cryptocurrency is solely focused on privacy and decentralization. Fast, secure and displaying strong fungibility, Monero has seen increased support, which we anticipate will only grow. The cryptocurrency price moved from $34 to $135 in a matter of months, illustrating its support and strength.
5. Chainlink (LINK)
Another exemplary example of the innovation within the crypto space, Chainlink bridges the gap between blockchain networks and outside metrics. While the cryptocurrency is not the only one pursuing this avenue, Chainlink is by far the leader of this endeavor.
One of the top 10 cryptocurrencies built on Ethereum, Chainlink saw rise in popularity following the DeFi sector explosion. LINK increased from a mere $2 to $20 in 2020. The price has since settled to roughly $15.
6. Tezos (XTZ)
With Tezos low price (roughly $2) it is an easy cryptocurrency to add to your portfolio. Better yet, Tezos offers users a great platform for staking, providing returns in merely 20 days. As the network works off of a Delegated proof-of-stake structure, users are more easily able to become block validators. In 2020 the cryptocurrency increased in value by four times, proving its growth and showing signs of better things to come. Sitting on the inside of the top 20 biggest cryptocurrencies, Tezos is likely to creep up a few positions come the end of 2021.
7. Cardano (ADA)
Big on their development, Cardano was launched in 2017 and is still undergoing structural changes. The most recent update incorporated staking features, which saw the price increase, along with the market interest. 2020 saw the price of ADA go from $0.02 to $1.50 by August. While the price has adjusted it is still an affordable way to diversify your portfolio.
8. Aave (AAVE)
Another cryptocurrency rising from the DeFi sector is Aave. Aave is a lending platform, the third largest to date. After a $1,200% year-to-date growth, the LEND token migrated to AAVE, at a ratio of 100 LEND to 1 AAVE. The price of AAVE increased, and it entered the radar of savvy investors. With the change, users can conduct staking and participate in the government of the protocol, as well as receive passive income from investments.
9. Basic Attention Token (BAT)
One of the most high-profile affiliate programs in cryptocurrency, BAT tokens are rewarded to users of the Brave browser who conduct simple tasks. Paid as a reward, BAT tokens can be accumulated by viewing ads on the platform. Another affordable token to diversify your portfolio, the BAT token doubled its value from $0.20 to $0.40 over the course of 2020.
10. Tron (TRX)
Sitting in the top 20 cryptocurrencies, Tron doesn’t always get the recognition it deserves (largely due to its controversial creator, Justin Sun). The cryptocurrency has displayed impressive increases in market capitalization since 2018 after accumulating BitTorrent. In September 2020 the price tripled from $0.01 to $0.03. This cryptocurrency is worth keeping an eye on due to its impressive resistance and opportunity for growth.
Cryptocurrencies Set To Explode In 2021
While this is certainly no financial advice, we are merely sharing the cryptocurrencies we want to have in our portfolio come 2021. We’ll be keeping a close eye on these cryptocurrencies over the year due to their impressive nature, market resilience and potential returns. If you’re looking for more tips on how to diversify your portfolio, see our comprehensive guide here.