2020 has been the most difficult year for the traditional global economy. Many financial systems have shaken while some have collapsed. Growing uncertainty over traditional financial assets has forced traders to look for more options to secure their funds.
This was the time when cryptocurrencies and blockchain technology caught the attention of the general public as “ safe haven ” assets. The user base grew dramatically in no time, indicating the shift in people’s interest in the crypto world.
So with a good base spreading out in 2020, it looks like a perfect start for cryptos in 2021 that can change the face of financial systems. Additionally, blockchain is currently seen as transformational similar to the internet or electricity.
By the end of the essay, you will have a brief idea of which cryptocurrencies have the potential to generate huge ROI. Let’s talk about those cryptos that can generate good profits in 2021.
Bitcoin is the first choice and can also be considered the best investment at any time. It is currently the most dominant crypto asset that has reached the highest levels in its history in 2020.
Bitcoin surprised everyone by going over $ 41,000 and trading very close to $ 39,800 registering nearly 224.7% gain in 2020. In addition, the market capitalization has crossed $ 500 billion, which is very huge.
It is the primitive crypto which has a huge and strong community which is spent not only with traders but also large institutions and payment processing companies as well. The year 2020 has seen immense interest from institutional investors like Microstrategy, Grayscale, Square Inc, etc. for Bitcoin.
In 2021, many analysts are predicting a long bull run for the asset which may bring the price of Bitcoin to around $ 50,000 or given the higher peak, the price is even expected to hit $ 100,000 as well. Moreover, many still believe that Bitcoin will replace gold as a store of value and as a hedge against inflation in the coming days.
The second largest crypto in the world in terms of market capitalization, Ethereum is second on the list. It is also called the “King of DeFi” which put on a magnificent performance in 2020. It started at just $ 130 and now it is trading above. $ 1,200, gaining nearly 381.3% in 12 months.
Ethereum is the basis of the many decentralized applications (DApps) and decentralized finance (DeFi) which should be the leaders of the crypto space in 2021. DeFi has already started its upward race since mid-2020 which should be also continue in 2021.
Total Locked-In Value (TVL) in DeFi is approximately $ 16.16 billion at press time and on which $ 7.2 million ETH is locked-in. Therefore, the DeFi boom is also expected to increase the price of ETH, which could reach $ 5,000 or more in 2021.
In addition, there is a lot of excitement around Ethereum due to the launch of the enhanced version ETH 2.0 Beacon Chain and others to come in 2021, is considered a new era of crypto trading with better features and opens. a bullish path for Ethereum if all goes according to schedule.
Chain link (LINK)
Chainlink is currently the most dominant DeFi token with over 30% dominance share. It is essentially a decentralized oracle aimed at connecting smart contracts with real world data. It gives users access to a “decentralized Oracle network” that allows untrusted data flow to trigger smart contracts.
Chainlink had the most bullish trend in 2020 with an increase of nearly 543.7%. The token started trading at just $ 1.7 and hit its all-time high of $ 19.85 in the mid-2020s. Despite an outage, the LINK price still holds above $ 16.
In the coming year, LINK is expected to continue the rally and climb above $ 25 or, in the high end, could even hit $ 35 as well. The main reason for the boom is the strength of the fundamentals and the validation process that ensures confidence in the Chain link Platform. And DeFi’s rising trend in 2021 will make LINK one of the top contenders for the best coins in 2021.
Unlike other blockchain networks, which are based on proof of work, Cardano is based on proof of stake. This enables the community to participate in the form of change agents, innovators and visionaries who can bring about positive global change.
The core team at Cardano is working to create a better blockchain than Ethereum with faster and cheaper transactions. IOHK, the mastermind behind Cardano rather than building his product on blockchains like Ethereum and Bitcoin, he created his own new blockchain.
ADA price started trading in 2020 from $ 0.033 and is currently trading at $ 0.31 earning nearly 345.3% in profit. In 2021, the price of Cardano is expected to rise further and may even reach $ 1 or more.
According to the latest data from the Staking Rewards data aggregator, Cardano has now grown into the most decentralized blockchain network on the market. There is currently over 21.75 billion ADA at stake on Cardano, or 69% of its total circulating supply.
It looks like Cardano will change the rules of the game in the industry, as Ethereum did in its day. Investing in ADA now could potentially bring solid returns. The only thing that could stop the bullish momentum is negative market sentiment. If the general market sentiment turns negative, the price of the asset may suffer with other cryptocurrencies.
Yearn Finance (YFI)
Yearn Finance, the product developed by Andre Cronje has delighted the entire crypto space by rallying like a monster. The rally attracted many traders to the DeFi space and introduced DeFi to mainstream trading.
Launched in August 2020, YFI was priced at just $ 30 during the pre-sale and early trading days. But in the blink of an eye, the price topped $ 43,000. YFI became the first altcoin to beat the price of Bitcoin. Some investors in the DeFi space claim that YFI has growth potential as its proposal is almost fully realized. The current price of YFI is $ 33,225.
However, it also dropped to the lowest levels, but recovered in a very short time. In 2021, the YFI price is expected to climb at lightning speed, which could take the price up to $ 50,000 or a mega rally could end up hitting $ 100,000 as well.
According to the official Project Medium page, in the near future the developers of yearn.finance will be working on the following:
- Integration with idle.finance.
- Go to the dezap of defizap.
- ZkDAI integration.
- $ SNX automation strategy.
- PToken integration.
- RenBTC integration.
Trust swap is referred to as next-generation DeFi transactions solving major issues related to split payments and swaps. At the heart of the platform is a trustless escrow service which enables split payments in timed batches.
Trustswap conducted an initial liquidity offer for the Swap token in June 2020. It started trading in July 2020 at $ 0.06 and within one month it recovered to $ 1.7 with a monthly gain by nearly 54.6%. At the time of writing, it is trading at $ 0.73.
The interesting fact about Octoberswap is the first and only DeFi project that primarily focuses on building tools and solutions for time-based swaps, smart escrows, and subscription-based crypto payments.
According to the founder, Jeff Kirdeik is whether the current level of development and more tokens are taken out of circulation due to systematic staking and redemption and burning, associated with multiple functional products with actual use. We can expect a 1000% increase in the price of SWAP over the next year or so which will realistically put the price of a SWAP token at $ 3.95.
PIECE OF MONEY is the native coin exchange token is a decentralized cross-chain P2P artificial intelligence wallet, exchange and assistant powered by atomic swaps and artificial intelligence. It has a circulating supply of 47 million and a maximum supply of 107 million.
The CoinEco system includes smart contracts such as smart contract staking which allows users to deposit and earn a passive COIN token. This is done by locking in and lending their existing COIN holdings.
Overall, the platform acts as a network access token that allows holders to run more COIN smart contracts, participate in interests, execute governance rights, and more.
Coin Exchange recently announced the first feature of its mainnet launch. In this function, you can upgrade your old coin token with a new coin token and create a wallet. The team said that in the coming times they will gradually announce all features.
When the coin token was listed on uniswap, its price jumped to $ 0.5, which was 5 times the presale price of $ 0.1. The coin token is currently trading at 0.2 USD and looking at their upcoming updates and partnerships, it can be said that the price of this token may be increased. Analysts estimate that its price can go anywhere from $ 3 to $ 7 by the end of the year.
Smart Key Token (SKEY)
Smart key is the missing part of the puzzle that connects the world of decentralized finance (DeFi) and blockchain to the world of physical assets. It offers the opportunity to create new business models based on ETH smart contracts realized by hundreds of DeFI projects.
During the first round of IEO, SKEY SKEY was offered to early investors at 0.025. The project has acquired significant demand, guaranteeing a capital of nearly $ 800,000 following the purchase of the 30,000,000 tokens.
Due to high demand, a second flash round was quickly prepared before being listed at 0.035 and also sold to rack up an additional $ 700,000 for a total of $ 1.5 million raised.
Must read: The price of Bitcoin hits an all-time high! Can BTC reach $ 100,000 before the end of 2020?
The SKEY token price shot up 400% after listing after successfully raising $ 1.5 million through two completed IEO rounds on ProBit Exchange.
However, with these fundamental developments in mind, it appears that the project has huge potential and the SKEY price may climb back up to $ 1 by the end of 2021, currently it is trading at $ 0.23.
The year 2020 has witnessed a peak in all terms, massive user adoption, transaction volume, mainstream recognition and more, the foundations of a new era of financial ecosystem in terms of DeFi have been asked. The biggest interest from major institutions has been the turn in the crypto space.
However, the coming year 2021 is expected to be more flourishing with improved features that will take the crypto space to the next level. Interestingly, the year 2021 is said to be the year of DEX and DeFi, which will bring a major revolution in the crypto space.