2021 is a year full of challenges for the global economy and traditional finance. With the large-scale global pandemic, blockade, and concerns about the global economic recession, more and more institutional investors are turning to cryptocurrency as a possible substitute for traditional financial assets or as a tool to hedge against major economic threats.
Therefore, 2021 seems to be the perfect time for further adoption of cryptocurrencies and large-scale changes to the existing financial system. Wider adoption is the key to crypto’s full potential as an asset class.
Blockchain technology is widely regarded as transformative, such as the Internet, machine learning, and electricity. There is no doubt that large institutions will eventually adopt it. The question is when, not if.
In 2020, many well-known financial institutions have realized the potential of encryption: JPMorgan Chase started banks Coinbase and Gemini; Visa and Mastercard provide services for crypto companies; PayPal launched a new service that enables users to buy, sell, and hold cryptocurrencies ; Fidelity launched a new Bitcoin Index Fund, which seems to be the latest move by Wall Street to bet on high-density institutional cryptocurrencies.
Who will be next? Time will tell us. But for all cryptocurrency traders, 2021 is definitely an exciting year.
Having outlined the bright future of cryptocurrencies that will conquer the public’s attention, let us answer this question: What are the top ten cryptocurrencies worth investing in in 2021?
New cryptocurrencies come and go, but Bitcoin will never become obsolete. By the end of November 2020, Bitcoin exceeded everyone’s expectations and hit an all-time high of $19,857, expanding its year-to-date increase to 177%.
Will the rebound continue in 2021? Analysts have a consistent and strong view on the future of Bitcoin in the next 12 months and beyond, predicting the target price of BTC to be 100,000 US dollars, 170,000 US dollars or even 318,000 US dollars.
Among the main Bitcoin price drivers in 2021, we can define growing institutional demand, rising inflation, and increasingly negative perceptions of contemporary monetary policy. All of this forces individual investors and institutions to look for alternative options to protect their capital value. Cryptocurrencies, led by Bitcoin, seem to be a perfect solution.
This expert believes that Bitcoin will eventually exceed $100,000, and he is not alone. Tom Lee, managing partner of Fundstrat Global Advisors, shared his forecast of BTC prices in 2021. He expects that Bitcoin will replace gold as a means of hedging and hedge against inflation.
The cryptocurrency forecast for 2021 cannot fail to mention the most promising cryptocurrency Ethereum, which has also shown outstanding performance in the challenging 2020.
In December 2020, as the second largest cryptocurrency after Bitcoin, Ethereum has a market value of 68,127 billion U.S. dollars. The trading price of the cryptocurrency at the beginning of the year was about $125, then it climbed to about $600, a 380% surge in 12 months.
Why is Ethereum considered the best cryptocurrency investment? The Ethereum open source blockchain network has always been the network of choice for decentralized applications (dApps). In addition to its native cryptocurrency Ether (ETH), the platform also supports other crypto platforms such as Uniswap (UNI), Maker (MKR) and Aave (AAVE), which are active in the decentralized financial sector.
DeFi is considered to be one of the fastest growing crypto trends. It can change insurance, loan, and savings plans to make them independent of banks and other centralized financial institutions.
In 2020, as the fastest growing field in the crypto world, DeFi has reached a new high. The total number of assets locked in the DeFi ecosystem is more than 13 billion U.S. dollars (in 2019, this number was less than 3 billion U.S. dollars). The influx of market participants and capital into DeFi contributes to Ethereum’s strong position as the leading altcoin, as it dominates the industry, accounting for 96% of total transaction volume.
Ripple was created as an alternative financial payment system to transform and promote cross-border payments to make them 100% safe, almost free and instant.
As early as in the early Ripple era in 2013, the platform received the attention of many financial institutions. After many years, it was adopted by more than 100 financial institutions. In 2020, the Ripple blockchain has expanded to more than 300 providers in 40 countries, including Banco Santander (SAN) and American Express (AXP), JPMorgan Chase (JPM) and HSBC Holdings (HSBA).
RippleNet’s recent backers include HDFC Bank Limited (HDB), India’s largest bank, and Bank of America (BAC), the second largest bank in the United States.
Looking ahead to 2021, what are the main drivers that make you think Ripple is one of the top ten most worthwhile cryptocurrencies to invest in?
According to a report from OMFIF (Official Monetary and Financial Institutions Forum), Ripple, with its distributed ledger technology (DLT), can “position itself as an alternative to SWIFT” and solve five main problems: security, speed, and traceability , Cost, transparency and risk management.
With increasing support from the European Commission, encouraging the transition to digital finance, and sharing plans to establish a new legal framework for the use of DLT technology and encrypted assets in the financial sector, Ripple’s prospects seem brighter than ever .
At the time of writing, Litecoin fluctuates around $87, which makes it very affordable. The market value of LTC is 5,792 billion U.S. dollars. Cryptocurrency can have one of the minimum time required for mining and a high block reward of 25 LTC.
Although we cannot call Litecoin the best-performing cryptocurrency of the year, it has never left the top 10 most popular cryptocurrencies, and 2021 is no exception.
The launch of the first decentralized RPG fantasy game LiteBringer based on Litecoin, each player’s move is a transaction, which brings benefits to the entire blockchain. As soon as the news came out, Litecoin trading volume soared, exceeding 130,000 immediately after the game was released.
CoinSwitch analysts predict that the target price of Litecoin in 2021 is $600, so the performance improvement may become a positive driver of the price.
Some analysts also believe that the price of Litecoin will tend to rise in the next few years after the halving. According to Cryptoground.com’s optimistic prediction of the LTC cryptocurrency, the trading price of Litecoin within a year is 88 US dollars, and it will climb to 347 US dollars by the end of 2024.
The TRON peer-to-peer network was originally launched on the Ethereum network, aiming to revolutionize the entertainment industry and democratize content creation. The team has many high-profile partners, including Samsung, bike-sharing company oBike, Chinese search engine Baidu, and the so-called Chinese Netflix Baofeng.
The TRON ecosystem serves as a content sharing platform. Users who create or share content will be rewarded with TRX, which is a more transparent monetization system than the monetization system used by traditional social media networks. It also does not require middlemen, such as AppStore or GooglePlay.
The rise of dApps may greatly contribute to the rise of TRON, as the encryption platform is considered to be one of the biggest forces in the market. In 2020, TRON’s dApp transaction volume even surpassed Ethereum.
In the summer of 2020, the platform launched the TRON 4.0 Great Voyage protocol upgrade. The implementation of 4.0, the introduction of privacy features into smart contracts, provides additional reasons to be optimistic about the TRX cryptocurrency forecast in 2021.
Since the widespread adoption of cryptocurrencies and crypto payments is only a matter of time, 2021 will be a great year for the entire crypto market. Although the list of top cryptocurrencies may be different, they can all provide some good trading opportunities, especially when we are talking about CFD trading.
CFDs can be used as a good choice to buy digital currencies, just like CFDs, you can benefit from rising and falling prices. Follow the latest market news, track the price of your favorite cryptocurrency in real time, analyze its performance and trade long or short accordingly.