In 2021, cryptocurrencies stood out for outstanding performance. At some point in November, the market value of the industry exceeded $ 3 trillion. But the recent bloodbath on the street has since lowered the total market capitalization (cap) to about $ 2 trillion.
Regularly InvestorPlace.com readers would know that Bitcoin (CCC:BTC-USD) in Ethereum (CCC:ETH-USD) are the two largest digital assets with appropriate market capitalizations of approximately $ 807 billion and $ 385 billion, respectively. Meanwhile, the number of cryptocurrencies is now close 8,000.
Understandably, not all of these digital assets have real-life usability. In fact, there are quite a few meme coins that have become noticeable in recent months. Many crypto enthusiasts, for example, are paying attention to the tweets of Elon Musk, the CEO Tesla (NASDAQ:TSLA), which uses Twitter (NYSE:TWTR) platform regularly. They attribute interest to meme coins such as Dogecoin (CCC:DOGE-USD) in Shiba Inu (CCC:SHIB-USD).
Most digital assets have grown mainly due to increasing adoption and innovation. In addition, both individuals and reputable brands such as Kellogg (NYSE:K), Starbucks (NASDAQ:SBUX) yummy! Brand (NYSE:YUM) have adopted irreplaceable tokens (NFT). Finally, the growth of decentralized finance platforms (DeFi) has also contributed to the increase in the number of cryptocurrencies.
With this information, here is our list of seven cryptocurrencies that could gain further grip in the coming months:
As always, investors should be careful when investing in cryptocurrencies, as the sector as a whole is prone to volatility.
Early Crypts for Early Purchase: Avalanche (AVAX-USD)
52-week range: $ 7.19 – $ 146.22
Ava Labs has started Plaz host decentralized smart contracts in 2020. This open source network is highly regarded for the rapid settlement of transactions through unanimous deposit proof mechanisms (PoS).
Like many others like it, Avalanche wants to become the most prominent name to host decentralized applications (dApps). Recent measurements show nearly 4000 dApps in various blockchains and Ethereum leads the space with a 75% market share. Although Avalanche is still a novice in this space, has high goals.
Its domestic coin, the AVAX-USD, is currently trading around $ 90.50, up about 1070% over the past year. Despite the recent fall in digital coin prices, Avalanche has returned by around 6% in the last month. With a market capitalization of $ 22.1 billion, it is the 11th largest cryptocurrency.
52-week range: $ 0.1692 – $ 3.0992
Introduced in 2017, Cardano is one of the third generation blockchains. Like Avalanche, it competes with Ethereum and other dApp platforms. Cryptocurrency is also striving to become a state-of-the-art blockchain platform for smart contracts and decentralized finance (DeFi) applications.
Cardano is well known as the only peer-reviewed blockchain platform in the industry, and ADA-USD is the domestic currency that powers the Cardano platform. It is used for rewards, transactions and participation in network management.
In September, the protocol introduced its Alonzo hard fork upgrade, adding smart contract functionality to its blockchain. As a result, Cardano says the platform has become more efficient, scalable and secure.
ADA-USD started in 2021 at $ 0.18. Altcoin hit an all-time high (ATH) of $ 3.10 in early September. Currently lower than the highs, it is trading at $ 1.22, which is still more than 300% more than last year. Its $ 39 billion market capitalization ranks Cardano as the seventh largest coin in the crypto market.
52-week range: $ 5.03 – $ 44.70
Launched in 2014, Cosmos is a decentralized network that allows blockchains to interconnect. The platform offers developers open source tools to create their own interoperable blockchains. Its goal is to create an entire ecosystem of interconnected blockchains that freely share data and tokens in the blockchain chains in the Cosmos ecosystem.
ATOM-USD is the home token that powers the network. Users can deposit their ATOM-USD to earn rewards, just as they put money in a bank account to earn interest over time. Cosmos the annual reward rate fluctuates between 7% and 20%, depending on how much money is currently invested in the network.
Each blockchain in the Cosmos ecosystem is connected to its block communication protocol (IBC), which connects all blockchains. In February 2021, Cosmos launched a Stargate upgrade which activated the IBC protocol. The move allowed hundreds of blockchains on their platform to communicate with each other for the first time.
ATOM-USD started in 2021 at about $ 5.41. The crypto then reached a record high of $ 44.79 in September. It is currently hovering just over $ 40. In the last year, the value of ATOM-USD has increased by 550%. Its market capitalization of $ 11.6 billion currently ranks Cosmos as the 17th largest cryptocoin.
52-week range: $ 20.93 – $ 236
Launched in 2017, Filecoin is a decentralized peer-to-peer (P2P) file storage network. The network takes advantage of its decentralized nature to protect the integrity of the data location, making it both easy to retrieve and difficult to censor.
Unlike centralized storage providers, e.g. Amazon (NASDAQ:AMZN) Online services, Filecoin has developed a publicly verifiable storage system that does not rely on a single central entity. Instead, the platform uses replication-proof and space-time protection protocols to protect the integrity of its file storage network.
FIL-USD is a domestic digital token that drives the network. The token is available as an economic incentive to ensure the reliability of Filecoin, where users pay fees to ‘warehouse miners’ to store their files on the network. These storage miners use Internet-connected computers that are assigned to store files. Anyone can receive the FIL-USD award for offering their storage capacity as a storage provider.
Altcoin started at $ 22.22 in 2021 and then reached a all-time high of $ 237 in April. Currently, FIL-USD is trading around $ 31, up 40% from last year, although the value of the cryptocurrency has fallen by about 25% in the last month. Due to its market capitalization of $ 4.5 billion, FIL-USD is the 40th largest altcoin in cryptospace.
52-week range: $ 7.29 – $ 54.84
The semi-cadot, introduced by Gavin Wood in 2016, was created by Swiss Web3 Foundation as an open source fragmented blockchain that connects different chains in a single network. The semi-cathode allows separate chains to process transactions simultaneously and securely exchange data between chains.
The cryptospace contains thousands of coins that are usually unable to communicate with each other. Semi-cadet facilitates the cross-transfer of any data or digital medium. The user-created chains of blocks that connect to Polkadot’s central chain of blocks are called “parachains”. The hemisphere builds a framework that connects the para-chains, even if they perform different functions. The result is transparent inter-chain connectivity and adjustment of block chains.
DOT-USD is the domestic cryptocurrency Polkadot. The token is used to conduct transactions, pledge, provide network management, and create parallel chains through connectivity. Polkadot has no limit on its entire offer; new tokens are released into circulation at a pre-determined annual inflation rate of 10%.
The crypto started in 2021 around $ 8.50. In May 2021, altcoin reached an ATH of $ 54.94. DOT-USD is currently hovering at $ 25, up 160% over the past 12 months. With a market capitalization of nearly $ 26.7 billion, DOT-USD is now the ninth largest digital coin in cryptospace.
52-week range: $ 2.03 – $ 260
Introduced by Anatoly Yakovenko in March 2020, Solana is a smart contract blockchain with a robust DeFi ecosystem that facilitates the creation of DApp and boasts a high-performance, low-cost platform.
The network is powered by a hybrid architecture of PoS and Proof of History (PoH) protocols. Thanks to this hybrid architecture, Solana is a robust destination for dApps and NFT projects. In addition, because the PoH protocol does not need validators to communicate with each other, Solana can handle up to 50,000 transactions per second.
Network fees are approximately $ 0.00025 per transaction, a significant saving compared to Ethereum’s high gas charges. As a result, the digital coin has garnered much interest from both retailers and institutional actors.
SOL-USD, Solana’s home token, drives the platform. Crypto started in 2021 at about $ 2.16. It recently climbed to $ 260 ATH in early November. The saltworks, currently hovering at $ 139, has grown 5,800 percent in the last 12 months. With a market capitalization of $ 43.2 billion, SOL-USD is currently the fifth largest coin in cryptospace.
52-week range: $ 0.70 – $ 102.00
Launched in April 2019, the Terra network uses fiat-linked stable coins to power cost-effective global payment systems. Coins are algorithmically pegged to their currency and not to fiat currency reserves. And the algorithm uses LUNA-USD to stabilize the price of stable coin protocols.
TerraUSD is one such stable coin created by Terraform Labs. Its stability is maintained indirectly through the TerraSDR coin, which is pegged to the value of the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) due to the relatively low volatility of the fixed asset.
The Terra network is a chain of blocks with proof of input. The network rewards validators with a small commission for each transaction. Transaction fees and validator rewards are expressed in TerraSDR.
July 2021, Terraform Labs raised $ 150 million from investors. Funds were allocated to Terra’s ecosystem fund to sponsor projects built on the Terra blockchain. In addition, Terra has completed her own Columbus-5 upgrade in September. The upgrade allows users to transfer Terra assets to other blockchains.
LUNA-USD started in 2021 at about $ 0.6314. It currently trades in the territory of $ 70, which is more than 8,100% more in the last 12 months. With a market capitalization of $ 25.3 billion, it is the tenth largest altcoin in the crypto space.
OhTezcan Gecgil did not hold (directly or indirectly) any positions in the securities mentioned in this article at the date of publication. The opinions expressed in this article are the opinions of the writer who are the subject InvestorPlace.com Guidelines for publication.
Tezcan Gecgil has worked in investment management in the US and the UK for more than two decades. In addition to a formal higher education in this field, she also passed all 3 levels of the Chartered Market Technician (CMT) exam. Her passion is options trading, based on a technical analysis of fundamentally strong companies. He especially enjoys setting up weekly covered calls for income generation.