Here is a list of the top ten cryptocurrencies that have good investment potential for 2021. These ten projects out of 8,000 cryptocurrencies have interesting ROI prospects. Macro data shows that 2021 will be a unique year for the crypto market.
It’s already 2021, historically the first year in this crypto cycle, almost entirely bullish in nature. I have taken a deeper look at the industry and have prepared a list of the top ten aspiring coins for 2021.
Which projects have the best chance of success? Can the parabolic rises of 2020 continue? Where is the best place to invest smartly and reduce the chance of failure while increasing your profit potential? Which crypto projects will rise to the top in 2021? Let’s dive in!
The Methodology Behind the Top 10 Ranking
When selecting projects for the top ten aspiring cryptocurrencies for 2021, I used three criteria. While any such rankings are arbitrary, I am giving the reader an opportunity to evaluate the list for themselves by disclosing my methodology.
The three criteria are as follows:
Position in the CoinMarketCap ranking
My set includes established projects from the list of the top 30 cryptocurrencies, according to CoinMarketCap, with a good reputation and a transparent trading history.
The purpose of the analysis was not to search thousands of cryptocurrencies to identify risky gems that could moon 100x, 1000x, or even 10,000x next year.
They could also drop to zero. I prefer to identify some of the most reliable projects with the best risk-reward ratio.
Annual ROI chart
The chart contains historical data on selected cryptocurrencies and compares the return on investment (ROI) that investors could have gained during 2020.
One commentator who refers to this chart frequently is Benjamin Cowen. In the video below, he indicates cryptocurrencies with the highest ROI from March to December 2020. LINK, VET, and ADA were the top three, followed by XLM and ETH.
Opinions of crypto market experts
This is the most arbitrary criterion. There are influencers, commentators, and analysts of all kinds in the crypto sphere, but there’s certainly no consensus on who is unquestionably an authority.
Thus, we only refer to a few people, such as Cowen, Kevin Svenson, and Lark Davis.
Each coin’s description includes a brief outline of its specification and foundations, the latest news that suggests a strong entry in 2021, and a paragraph on long-term price action.
10. Bitcoin (BTC)
Price: $26,800 Market Cap: $500 Billion CoinMarketCap Rank: 1
The top ten aspiring cryptocurrencies for 2021 begin with the orange king of crypto itself: Bitcoin (BTC).
Created in early 2009 by Satoshi Nakamoto, the first cryptocurrency is, in fact, a distributed, decentralized ledger where users send funds directly to each other, peer-to-peer, without an intermediary.
There is no need to convince anyone who has been around the cryptosphere for a while that investing in bitcoin is profitable. Especially recently, when on December 16, BTC broke out from $20,000, 2017’s historical all-time high (ATH).
So far, bitcoin is one of the most profitable assets in history, surpassing big names like Amazon, VISA, Microsoft, and JP Morgan in terms of ROI by several orders of magnitude
But some people ask, is it still profitable to buy bitcoin at such a high level above $20,000? Does anyone else still buy? This turns out to be an overwhelming yes! And it’s not random retail players who missed the discount prices during the March crisis (below $4,000), but serious financial institutions.
In the recent top 5 list of institutional investors , BeInCrypto showed that companies like MicroStrategy, 3iQ, or CoinShares are investing additional capital into BTC.
The Grayscale Fund is a leader in mediating between the purchases of the alpha cryptocurrency and its investors’ interests. The secret Bitcoin purchases made for some time by Guggenheim Partners and MassMutual have also recently come to light.
We are witnessing the first Bitcoin cycle in which institutions are initiating the rally. Something that Bitcoin hodlers have been expecting for years, and that could bring unprecedented gains in the crypto market.
Some investor’s decisions may result in an avalanche of followers who’ll want to FOMO in for themselves. For example, according to JP Morgan’s estimates, 1% of the capital in pension funds and insurance companies in Europe, Japan, and the USA would be enough to pump an additional $600 billion into the crypto market.
The involvement of big financial institutions and other macroeconomic factors could lead to an enormous BTC price explosion in 2021 and the fulfillment of optimistic forecasts .
9. Stellar (XLM)
Price: $0.13 Market Cap: $2.9 billion CoinMarketCap Rank: 15
Stellar (XLM) is a blockchain network for storing and transferring money. It was established in 2014 to increase financial integration in different regions of the world and help companies exchange value.
The network’s main task is to provide a platform for low-cost payment services where the transaction fee is fixed at only 0.00001 XLM.
Stellar has succeeded in integrating with several fintech companies. A few years ago, it launched World Wire together with IBM. The platform enables transactions between bridge assets like stablecoins.
What’s more, it incorporates the idea of decentralization. The Stellar network allows users to vote in the decision-making process when adding companies to the ecosystem.
XLM is gaining additional global adoption after Grayscale Investments created a dedicated trust .
As BeInCrypto recently explored, the oldest bank in Germany, Bankhaus von der Heydt, announced the creation of a euro stablecoin (EURB) on the Stellar blockchain. It’s the first token of this type issued by a banking institution.
XLM’s price action since the March crisis is impressive. The cryptocurrency is among the top five coins that have brought investors the highest ROI. From the low of $ 0.026 in March to the high of $0.23 in November, XLM generated almost 800% profit.
Currently, Stellar is undergoing a deeper yet healthy correction that recently reached the 0.5 Fib level of the entire long-term upward movement. The all-time high (ATH) from January 2018 at $0.94 is still quite far away, which gives great potential growth in 2021.
8. Tezos (XTZ)
Price: $2.09 Market Cap: $1.6 Billion CoinMarketCap: 19
Tezos (XTZ) created its own blockchain network for smart contracts that aims to evolve. One of its tasks is to avoid Ethereum and Bitcoin errors, allowing hard forks. Adaptability, an open structure, and the influence of validators (bakers) on the network are its main advantages.
A recent upgrade to the Tezos network called Delphi planned to cut smart contract gas fee by 75% to attract DeFi developers to the ecosystem. However, Tezos’ applications extend much further and implement the latest trends in the crypto market, such as NFTs, video games, and the film industry.
Welcome to Delphi!