The year 2020 was the most challenging for the traditional global economy. Many financial systems trembled whereas some of them collapsed. The growing uncertainty over the traditional financial assets compelled the traders to look out for more options to secure their funds.
This was the time when the cryptocurrencies and blockchain technology gained mainstream attention as ‘safe haven’ assets. The user base expanded remarkably within no time which points out towards the shift of interest of the people towards the world of cryptos.
So, with a good base spread out in 2020, it seems like a perfect start for the cryptos in 2021 which can change the face of financial systems. Moreover, blockchain currently is considered transformational similar to the internet or electricity.
By the end of the writing, you will get a brief idea about the cryptocurrencies which have the potential to gather huge ROI. Let us discuss such cryptos which can earn good profits in 2021.
Bitcoin is the first choice and also can be considered as the best investment at all the time. It is currently the most dominant crypto asset which has attained the highest levels in its history in 2020.
Bitcoin surprised everyone by surging above $41,000 and trading very close to $39,800 recording nearly 224.7% gain in 2020. Moreover, the market cap has crossed $500 billion which is very huge.
It is the primitive crypto which has a huge and strong community which is expended not only with the traders but also to the big institutions and also payment processing companies. The year 2020 has witnessed immense interest of institutional investors like Microstrategy, Grayscale, Square Inc, etc in Bitcoin.
In the year 2021, many analysts predict a long bull run for the asset which can carry the Bitcoin price surrounding $50,000 or considering the highest spike, the price is expected to even touch $100k also. Moreover, many still believe Bitcoin will replace gold as a store of value and a hedge against inflation in the coming days.
The world second largest crypto in terms of market cap, Ethereum is the second on the list. It is also called the ‘King of DeFi’ which has showcased some magnificent performances in 2020. It started at just $130 and now it is trading above $1200, gaining nearly 381.3% in the period of 12 months.
Ethereum is the base for the numerous decentralised applications(DApps) and decentralized finance(DeFi) which are expected to be the leaders of the crypto space in 2021. The DeFi has already initiated its bull-run since mid of 2020 which is anticipated to continue in 2021 also.
The total value locked(TVL) in DeFi is around $16.16 billion at the press time and out of which $7.2 million ETH is locked. Therefore, the DeFi boom is expected to rise the ETH price also which may touch $5000 or more in 2021.
Moreover, there is a lot of excitement surrounding Ethereum due to the launch of the upgraded version ETH 2.0 Beacon Chain and more coming up in 2021, is looked upon as a new era of crypto trading with better features and paves a bullish way for ethereum if everything goes as per the schedule.
Chainlink is currently the most dominant DeFi token with more than 30% dominance share. It is basically a decentralized oracle with aims to connect smart contracts with data from the real world. It gives users access to a ‘Decentralized Oracle Network’ which enables trustless data streams to trigger the smart contracts.
Chainlink had the most bullish trend in 2020 with an increase of nearly 543.7 percent. The token started trading with just $1.7 and formed its all-time high of $19.85 in the mid-2020’s. Despite a breakdown, the LINK price is still sustaining strong above $16.
In the coming year, LINK is expected to continue the rally and surge above $25 or at the higher end even may touch $35 also. The main reason behind the surge are the strong fundamentals and the validation process which ensures confidence in the Chainlink platform. And the rising trend of DeFi in 2021 will make LINK one of the strong contenders for top coins in 2021.
Unlike the other blockchain networks, which are based on proof-of-work, Cardano is based on proof-of-stake. It enables the community to participate in the form of changemakers, innovators and visionaries who can bring a positive global change.
The core team of Cardano is working with an aim to create a better blockchain than Ethereum with more faster and cheaper transactions. IOHK, the brain behind Cardano rather than building their product on blockchains like Ethereum and Bitcoin, it has created its own new blockchain.
The ADA price started trading in 2020 from $0.033 and currently trading at $0.31 gaining nearly 345.3% profits. In 2021,the Cardano price is expected to rally further and may even touch $1 or more.
According to the latest data from data aggregator Staking Rewards, Cardano has now become the most decentralized blockchain network on the market. There is currently over 21.75 billion ADA staked on Cardano, representing 69 percent of its total circulating supply.
It seems that Cardano will change the industry’s rules of the game, as Ethereum did in its time. Investing in ADA now could potentially bring solid returns. The only thing that could stop the bullish momentum is negative market sentiment. If general market sentiment becomes negative, the asset’s price may suffer along with other cryptocurrencies.
Yearn Finance (YFI)
Yearn Finance, the product developed by Andre Cronje thrilled the entire crypto space by rallying like a monster. The rally attracted many traders towards the DeFi space and brought DeFi into mainstream trading.
Launched in August 2020, YFI was priced at just $30 during the pre-sale and the initial days of trade. But within a blink of the eye, the price touched above $43,000. YFI became the first altcoin to beat Bitcoin’s price. Some investors in the DeFi space say YFI has potential for growth as its proposal is almost fully realized. YFI current price is $33,225.
However, it dropped the lowest levels too but recovered in a very short span of time. In 2021, YFI price is expected to surge at skyrocket speed which could carry the price till $50,000 or a mega rally may end up touching $100,000 also.
According to the project official Medium page in the near future the yearn.finance developers will work on the following:
- Integration with idle.finance.
- Switch over to defizap’s unzap.
- zkDAI integration.
- $SNX automation strategy.
- pToken integration.
- renBTC integration.
Trust swap is referred to as next generation DeFi transactions solving major problems related to split-payments and swaps. A trustless escrow service is the core of the platform which enables split payments in timed batches.
Trustswap conducted an initial liquidity offering for the Swap token in June 2020. It started trading in July 2020 at $0.06 and within a month it rallied to touch $1.7 with almost 54.6% monthly gain. At the time of writing, it’s trading at $0.73.
The Interesting fact about TrustSwap is that, it’s the first and only DeFi project that is primarily focused on building tools and solutions for time-based swaps, smart escrows, and subscription-based crypto payments.
According to the founder, Jeff Kirdeikis if the current level of development, and more tokens are being taken out of circulation due to staking and systematic buy-back and burn, coupled with multiple working products with real-life usage. We can conservatively expect a 1000% increase in the price of SWAP in the next 1 year which will realistically put the price of 1 SWAP token at $3.95.
COIN is the native token of the Coin exchange is P2P cross-chain decentralized cryptocurrency wallet, exchange, and AI assistant that is powered by atomic swaps and artificial intelligence. It has a circulating supply of 47 million and a max supply of 107 million.
The CoinEco-system includes smart contracts like smart contract staking which allows users to deposit and earn passive COIN token. This is done by locking and lending their existing COIN Holdings.
Overall, the platform acts as a network access token that permits holders to execute more COIN smart contracts, stake interest, execute governance rights and more.
Coin Exchange has recently announced the first feature of its mainnet launch. In this feature you can upgrade your old coin token with a new coin token and create a wallet. The team has said that in the coming time they will gradually announce all the features.
When the coin token was listed on uniswap, it’s price went to $0.5, which was 5x above the presale price $0.1. The coin token is currently trading at $0.2 and looking at their upcoming updates and partnerships, one can say that the price of this token can be increased. Analysts believe that its price can go between $3 to $7 by the end of this year.
Smart Key Token (SKEY)
SmartKey is the missing part of the puzzle that connects the world of decentralized finance (DeFi) and blockchain with the world of physical assets. It provides an opportunity to create new economic models based on ETH Smart Contracts carried out by hundreds of DeFI projects.
During the first round of IEO, SKEY SKEY was offered to early investors at 0.025. The project acquired significant demand securing nearly $800,000 in capital following the purchase of all 30,000,000 tokens.
Due to the high demand, a second flash round was quickly prepared before listing at 0.035 and also sold out to accrue an additional $700,000 for a total of $1.5 million raised.
The SKEY token price rocket by 400% following listing after successfully raising $1.5 million via two completed IEO rounds on ProBit Exchange.
However, keeping these fundamental developments in mind, it seems that the project has huge potential and the SKEY price can rally upto $1 by the end of 2021, currently it’s trading at $0.23.
The year 2020 witnessed a spike in all terms, mass user adoption, trading volume, mainstream recognition and moreover a foundation of a new era of financial ecosystem in terms of DeFi was laid. The more interest from the big institutions was the turning point in the crypto space.
Upcoming year 2021, however, expected to be more flourishing with upgraded features which will carry the crypto space to the next level. Interestingly, the year 2021 is said to be the year of DEX and DeFi’s which will bring a major revolution in the crypto space.