2021 has been a stellar year for cryptocurrency.
Whether more people have decided to make investments or the rise in interest in the subject, there is no denying that the buying and selling of digital currencies have risen exponentially over this calendar year.
Cryptocurrencies finally made it into mainstream finance and have been directly and indirectly endorsed by the rich and famous.
According to Markets Insider, “institutional and retail investors have piled into crypto assets blockchain-based products, and services like non-fungible tokens” and have turned a $1 trillion market into a $3 trillion one in under 12 months.
As the metaverse created a new wave of investment opportunities for digital products, it has been heralded as the future of transactions.
It seems as though decentralization will continue to evolve over the next year.
As the metaverse and recent influx in Not-For-Trade artworks (digital representations of real-world art, music, or video content) rise in popularity, crypto assets are “expected to spiral even higher in value.”
Bitcoin can no longer be attributed to the sole reason for the popularity of cryptocurrency. Funnily enough, meme coins such as Dogecoin cemented crypto as something to look out for.
As joke tokens were created to out-meme previous ones, news of the market spread across the INternet, attracting potential investors who wanted to be in on the latest viral trend.
“Other smaller coins have risen exponentially year-to-date and gained mainstream fame. Dogecoin, a cryptocurrency that was created a few years ago as a joke, has been one of the star performers and gave rise to a series of spin-offs that achieved even more dizzying heights,” Markets Insider reports.
But where memes take precedent, older tokens work to prove they can rise above them. The recent proof-of-stake scheme has placed power in the hands of network users, building a community of trust between buyers, sellers, and investors.
Altcoins that are native to blockchains have been able to wield most of the power of the financial world, making crypto-superstars emerge within the digital realm.
Bitcoin, still the leading cryptocurrency in market value, is up around 70% this year. Many tokens based on the Ethereum blockchain have expanded from one week to the next, appearing as rivals for the crypto giant.
These markets are unpredictable, and where one token hits an all-time high one month, it can collapse overnight.
With over 15,000 tokens on the market, let’s take a look at those that made the list of top ten cryptocurrencies in 2021 based on data from CoinMarketCap.
This list will only include tokens with a market value of over $1 billion, and all market cap values are approximated.
10. Dogecoin (DOGE)
Market cap: $28 billion
What began as a meme token became one of the year’s top cryptocurrencies. It has since spawned more meme-related tokens, but Dogecoin remains at the top.
Thanks to moguls such as Elon Musk, the token has constantly remained in the public eye since its conception and has since been heavily invested in.
Unlike other tokens, there is an unlimited supply of DOGE coins. This may be detrimental as it leaves the token susceptible to devaluation over time.
9. Polkadot (DOT)
Market cap: $37 billion
Polkadot has been noticed as being the network aiming to link multiple blockchains in order to ensure a much smoother transaction of tokens.
Since its launch in 2020, DOT has been on a steady rise, and with its focus on integration, it is headed towards even more success.
8. U.S. Dollar Coin (USDC)
Market cap: $38 billion
In spite of the initial confusion investors momentarily had over the name, USDC has become a token that has been on many people’s radar.
It is a stablecoin, meaning it is backed by actual U.S. dollars that aim for a ratio of 1 USD: 1 USDC. The token is powered by Ethereum and can be used in global transactions.
7. XRP (XRP)
Market cap: $47 billion
From the same founders of the digital technology and payment processing company Ripple, XRP can be used in the same network to facilitate the exchange of multiple currencies and can handle both major crypto tokens and fiat currencies.
6. Cardano (ADA)
Market Cap: $52 billion
A later addition to the cryptosphere, Cardano was one of the earliest to embrace the proof-of-stake system.
This decreases transaction time and energy usage, thus reducing environmental impact by removing the competitive and time-consuming problem-solving element of verification used in platforms like Bitcoin.
The system has been heralded as a much more sustainable way to encourage digital transactions.
5. Solana (SOL)
Market Cap: $64 billion
Launched in 2020, Solana (SOL) was developed to power decentralized finance and apps and smart contracts. It runs on a hybrid of proof-of-stake and proof-of-history mechanisms to ensure safe and secure transactions between blocks in the blockchain.
4. Tether (USDT)
Market Cap: $73 billion
Tether is a stablecoin, which means that, unlike altcoins, it is backed by fiat currencies, namely the U.S. dollar and the Euro. This keeps its value somewhat equal to those. Theoretically, this should mean that Tether’s value is designed to be more consistent than other crypto tokens, making it favorable to low-risk investors.
3. Binance Coin (BNB)
Market cap: $104 billion
This is a form of cryptocurrency used to trade and pay fees on Binance, one of the world’s largest crypto exchanges.
Since its launch in 2-17, the coin has been used for more than just facilitating trade. Now, it is used for trading, payment processing, and even booking travel. It can be easily traded for other forms of cryptocurrency.
2. Ethereum (ETH)
Market cap: $557 billion
As a cryptocurrency as well as the leading blockchain platform, it is no surprise that Ethereum has remained one of the most desirable tokens.
It has and will continue to remain a favorite of developers due to its applications, these being smart contracts and non-fungible tokens.
1. Bitcoin (BTC)
Market cap: $1.08 trillion
As much as Bitcoin may rise and fall within the crypto market, Bitcoin will remain the King of Cryptocurrency.
Created in 2009, its status as the original coin in the original blockchain will determine the fate of its successors for many years to come.
