Even though cryptocurrency was considered untenable by skeptics, 2021 proved to be a stellar year. This, despite global economic turmoil and a pandemic that doesn’t seem to go away. Crypto investors have been making lots of money for the last two year. Imagine returns of 400% or more and increased acceptance by the mainstream investor.
In 2021, the gainers were alt coins, meme currencies and NFTs. Dogecoins and Shiba Inu – meme coins – have taken the market by storm because of business tycoons like Elon Musk offering their endorsement. 2021 has proved to be a phenomenal year for the cryptocurrency industry.
Want to know more about the top performing currencies in 2021? Here is a list.
Top 2021 Cryptocurrencies
1. Polygon
At the top of the list, Polygon (MATIC) has performed well for many reasons. With a starting value of .2 cents USD, its value grew to $2 and stayed steady by the end of December 2021. It took on Ethereum and its issues like clogged blockchain and overuse by adding on an extra layer. This layer is scalable, and increases based on user activity. It works well with ETH blockchains to provide a seamless experience. Its gains are a stagger 11,00% and more and market cap is $14 billion.
2. Terra
At its core, Terra (LUNA) offers a way to create stablecoins which have a tangible asset base. There are stablecoins for each world currency – the USD, Euro, the Korean Won and others. The idea is to make adopting and using cryptocurrencies on a larger scale easier. Several e-commerce companies back this method and price stability is achieved by trading its tokens with stablecoins. Market capitalization is $23 billion.
3. Solana
Solana (SOL) is one crypto which has held its value better over time. Its value quadrupled in August 2021 and stabilized in November after a bit of instability. It is similar to Avalanche and is giving Ethereum stiff competition. Solana’s transactions use a PoS platform and low fees and faster transactions. Even though all use smart contract platforms and facilitate application building on their networks. Solana uses a different method. IT uses PoS and PoH (Proof-of-History), which offers a timestamp for each transaction.
4. Dogecoin
Dogecoin (DOGE) – the infamous meme coin – is generating a lot of trust in investors, like Tesla’s potential in the market. Thanks to Elon Musk’s tweets on accepting vehicle purchases with Dogecoins, this currency has gained traction in the market and trust as well. Its gains are 2819% in 2021 and a market cap of $22 billion.
5. Avalanche
Avalanche (AVAX) claims that it is like Ethereum but much faster. Its creators say that it is scalable, decentralized and secure. This is the main reason for its wide adoption. Developed by Deloitte and Ava Labs, Avalanche is used by local and state governments. The consensus protocol verifies transactions and spread of three blockchains.
6. Shiba Inu
Shiba Inu (SHIB) has skyrocketed in popularity thanks to its meme and ease of use. Created on Ethereum’s blockchain, this native and decentralized exchange offers token swapping, governance with its bone token and staking. Its NFTs are called Shiboshis and are also in great demand. It has a market cap of $17 billion.
7. BNB
Binance has the largest and most liquid exchange. It offers a wide range of uses like transaction fee payments, financial services, stock investing, ETFs and travel arrangements. Binance’s own cryptocurrency – BNB – has grown steadily in 2021 and saw its highest numbers in April 2021. Market cap stands at $86 billion.
8. Cardano
Cardano (ADA) is another platform which is like Ethereum and uses the Proof of Stake model. It saw its highest growth in August 2021. Its price dropped by half and its market cap is $40 billion.
9. Ethereum
Created to be an alternative to Bitcoin and offer value and utility, Ethereum (ETH) had a large share of the cryptomarket. With the increased adoption of NFTs and other cryptocurrencies, Ethereum lost market share and saw a drop in value. This is to be expected in the digital currency market and ETH’s market share stands at $441 billion.
Conclusion
It is safe to say that cryptocurrencies are here to stay, and the central banks of many countries are looking at ways to offer safe versions of these to their citizens. In 2022, cryptocurrencies will continue to pave their way into the world’s financial systems.
So, which ones will be the best performing for 2022? Only time will tell; for now, those 10 cryptos will continue to driving the crypto market forward.