Wondering which cryptocurrencies will explode in 2021? Check out our list of the top contenders for the title of best-performing cryptocurrency this year.
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Bitcoin
Bitcoin is the world’s first and most well-known cryptocurrency. Created in 2009, it is a decentralized currency that is not subject to any government or financial institution. Bitcoin is mined by people all over the world who use powerful computers to solve complex mathematical problems. The rewards for mining bitcoin are paid out in bitcoin, so the more people mine, the more valuable the currency becomes.
Bitcoin has a limited supply of 21 million coins, and it is estimated that there are only around 18 million in circulation at the moment. This makes it a very scarce asset, which is one of the reasons why its price has been rising steadily in recent years. Another reason for its price increases is increasing demand from investors and users who see it as a store of value or an alternative to traditional currencies.
Ethereum
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is the second largest cryptocurrency by market capitalization, after Bitcoin. It is also one of the leading platforms for Initial Coin Offerings (ICOs).
The price of Ethereum has fluctuated substantially over the last year, from a low of $7 in January 2017 to a high of $1,400 in January 2018. However, the price has since dropped back down to around $200.
There are a number of reasons why Ethereum could explode in 2021. First, Ethereum is planning to move to a Proof-of-Stake (PoS) consensus algorithm, which would make it much more energy efficient than its current Proof-of-Work (PoW) algorithm. This would make it more attractive to businesses and individual users who are looking to reduce their carbon footprints.
Second, the launch of Ethereum 2.0 is expected to significantly improve the scalability of the Ethereum network, making it able to handle more transactions per second than any other blockchain network. This could make it the go-to platform for businesses and organizations that need to process large numbers of transactions quickly and efficiently.
Third, there are a number of highly anticipated projects that are built on top of the Ethereum network that are expected to launch in 2021. These include Polkadot, Cardano, and EOS. If these projects are successful, they could drive up demand for Ethereum and help push its price even higher.
Fourth, institutional investors have started to show an increasing interest in cryptocurrency markets, and this is likely to continue in 2021. If more institutional investors buy Ethereum, this could lead to a significant increase in its price.
Finally, public awareness of cryptocurrency is still relatively low compared to other asset classes such as stocks and real estate. However, this is changing rapidly, and as more people learn about Ethereum and other cryptocurrencies, demand is likely to increase sharply.
Litecoin
Litecoin is often described as the digital silver to Bitcoin’s digital gold. Created by former Google engineer Charlie Lee in 2011, it’s one of the oldest and most established cryptocurrencies.
Litecoin has often been seen as a testbed for Bitcoin, with new features or upgrades being first trialled on Litecoin before being adopted by Bitcoin. For example, Litecoin was the first major cryptocurrency to adopt Segregated Witness (SegWit), a key upgrade to the Bitcoin network that improved transaction speed and reduced fees.
Litecoin also differs from Bitcoin in terms of mining; while both use Proof-of-Work (PoW) consensus, Bitcoin mining uses the SHA-256 algorithm while Litecoin uses Scrypt. This means that it’s easier to mine Litecoins with consumer-grade hardware like CPUs and GPUs, rather than specialized ASIC miners required for Bitcoin.
Despite these advantages, Litecoin’s price has lagged behind Bitcoin in recent years; at the time of writing, 1 LTC is worth around $160, compared to $40,000 for 1 BTC. However, many believe that Litecoin still has potential to grow in 2021 and beyond; with SegWit now implemented and Lightning Network on the horizon, Litecoin could be set for a big year ahead.
Bitcoin Cash
Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of Bitcoin in 2017. BCH was created to speed up transaction processing times and to improve scalability. BCH can process approximately 56 transactions per second, compared to Bitcoin’s 7 transactions per second.
Bitcoin Cash has been one of the top performers in the cryptocurrency market in 2020, gaining over 300% since the beginning of the year. BCH is currently trading at around $350, and many experts believe that it has a lot of upside potential in 2021.
Investors are bullish on Bitcoin Cash because it has strong support from major companies and organizations such as square, bitpay, and binance. In addition, BCH is one of the few cryptocurrencies that is actually being used for real-world transactions.
For these reasons, we believe that BCH is a good investment choice for 2021 and beyond.
Ripple
Ripple is one of the most popular cryptocurrencies and is predicted to explode in 2021. Ripple is a decentralized platform that uses blockchain technology to make international payments. Ripple is also one of the fastest-growing cryptocurrencies, with a market capitalization of over $20 billion.
Binance Coin
Binance Coin is the native cryptocurrency of the Binance exchange. Binance Coin is a utility cryptocurrency that can be used to pay fees on the Binance exchange. Binance Coin can also be used to trade a variety of cryptocurrencies on the Binance exchange.
Binance Coin was created in 2017 and it has a total supply of 176,406,561 BNB. Binance Coin is currently the seventh largest cryptocurrency by market capitalization with a market cap of $37,460,541,343.
Binance Coin is currently trading at $211.51 and it has a circulating supply of 176,406,561 BNB.
Cardano
Cardano is a decentralized public blockchain and cryptocurrency project and is fully open source. Cardano is developing a smart contract platform which seeks to deliver more advanced features than any protocol previously developed. It is the first blockchain platform to evolve out of a scientific philosophy and a research-first driven approach. The development team consists of a global collective of expert engineers and researchers. The project is jointly managed by three organizations: IOHK, Emurgo, and The Cardano Foundation.
Polkadot
Polkadot is a decentralized application platform that enables developers to build and connect blockchain applications in a multi-chain environment. It is built on Substrate, an open-source framework for building blockchains. Polkadot is designed to enable horizontal scaling of decentralized applications and parachains. Parachains are parallelizable chains that can scale horizontally by leveraging the network effects of Polkadot’s relay chain. Polkadot also enables cross-chain transfers of any type of data or value, including but not limited to tokens, contracts, and balances.
The native token of the Polkadot platform is DOT. DOT tokens are used to governance the Polkadot protocol and are required to submit proposals or vote on referenda. DOT holders can also delegate their tokens to validators to earn rewards.
Chainlink
Chainlink is a decentralized oracle network that provides reliable, tamper-proof inputs and outputs for complex smart contracts on any blockchain. It secured early partnerships with Google and Oracle, and its cryptocurrency LINK is currently ranked #12 by market capitalization.
Chainlink’s success depends on the adoption of smart contracts by enterprises. If that happens, then Chainlink’s decentralized oracle network will be in high demand. And with LINK tokens required to access the network, the price of LINK could explode in 2021.
Stellar
Cryptocurrency prices fluctuate rapidly, and it can be tough to predict which ones will explode in value. However, there are a few factors that can give you an idea of which coins might rise in price. First, look at the team behind the project. If there are reputable people involved, that’s a good sign. Second, check out the project’s roadmap to see what their plans are. If they have a solid plan and are making progress towards their goals, that’s another good sign. Finally, look at the coin’s trading volume. If there is a lot of interest in the coin, that could mean that it is about to take off.
With that in mind, here are a few cryptocurrencies that could explode in value in 2021:
-Stellar: Stellar is a payments network that makes it easy to send and receive money. The team behind Stellar includes some big names, such as Jed McCaleb (co-founder of Ripple) and Joyce Kim (former executive director of the Stellar Development Foundation). Stellar also has a strong roadmap, with plans to launch new features and partnerships throughout 2021. Finally, Stellar has high trading volume, indicating that there is a lot of interest in the coin.
-Ethereum: Ethereum is a decentralized platform that runs smart contracts. The team behind Ethereum includes Vitalik Buterin (co-founder of Bitcoin Magazine) and Joseph Lubin (co-founder of ConsenSys). Ethereum also has a strong roadmap, with plans to launch new features and partnerships throughout 2021. Finally, Ethereum has high trading volume, indicating that there is a lot of interest in the coin.
-Cardano: Cardano is a blockchain platform designed to run smart contracts and decentralized applications. The team behind Cardano includes Charles Hoskinson (co-founder of Ethereum) and Jeremy Wood (co-founder of Input Output Global). Cardano also has a strong roadmap, with plans to launch new features and partnerships throughout 2021. Finally, Cardano has high trading volume, indicating that there is a lot of interest in the coin.
