Top 3 Best Investments of 2021

The list of top ten cryptocurrencies by market capitalization has undergone significant changes since January 1, 2021. Projects such as Litecoin, Chainlink and Bitcoin Cash have “dropped out”. Instead, Solana, USD Coin and Avalanche are now in the top 10. At the same time, Dogecoin, Solana and Terra showed the best results in terms of profitability.

Dogecoin (DOGE)

As noted by Cointelegraph journalists, the rapid growth of this altcoin was due to its active promotion by billionaire Ilon Musk. 12 months ago, DOGE was trading at $0.004 and was out of the focus of most traders.

However, in early February, when Ilon mentioned the coin several times on Twitter, its price surged several times in just a couple of days. A second wave of growth took place in April and May, when DOGE hit an all-time high of around $0.731 after going up nearly 1,100 percent. This jump gave the coin a fourth place in the cryptocurrency capitalisation ranking.

Dogecoin exchange rate

However, a few months later, even thanks to the huge haip, DOGE failed to stay in the top 10 ranking. The success of the meme coin project, however, paved the way for many of its inspired startups on the “dog” theme. The best known of these is Shiba Inu.

Solana (SOL).

Solana, a native blockchain token, was valued at just $1.52 in early 2021. At the time of writing, its price is approaching the $190 level. That’s an increase of almost 10,000 percent in just 1 year.

At its peak, SOL was worth $259.

The rate of Solana

Interesting thing is that Sam Bankman-Fried, active supporter and CEO of popular crypto exchange FTX, was harshly reacting to critics’ comments about Solana at the beginning of the year. At the time, he said he was ready to buy a huge number of tokens at $3 and “shut everyone’s mouth”. As we can see, his calculation about the popularity and the value of the project turned out to be correct.

Terra (LUNA)

A similar level of success was demonstrated by the token of the decentralized payment network Terra. The altcoin managed to make it into the top 10 cryptocurrency rankings by capitalisation after skyrocketing from $0.65 to $90.93 in just one year. The course record is $103.

Terra exchange rate

The first ace in Terra’s chart is visible in March and May, but the biggest growth rate has been seen since August. Terra has set new all-time highs several times in the past few months and is tentatively not going to stop.

Top 3 worst investments of 2021

Internet Computer (ICP)

Internet Computer is one of the “champions” in terms of length of development. The project was more than five years in the making, with the distribution of its ICP tokens only beginning this year. It promised an internet revolution that would overturn the trillion dollar IT industry by allowing developers to create their code directly on the new standard’s “public internet” without resorting to third party hosting companies.

The course of Internet Computer

However, judging by the price of the token, the idea hasn’t attracted much attention from new investors. Because large funds, having received the privilege of investing in the project a couple of years ago, started actively flushing out tokens on exchanges immediately after their listing. The result is sad – for several months price of ICP fell almost by 96% – from 700$ to 24$.

EOS

EOS token is familiar to many who followed the crypto market during the previous bullish cycle. Back then, the altcoin gained widespread popularity as one of the “potential killers” of Etherium. However, this year’s market performance of EOS has been pretty uneventful, with the asset moving in a horizontal channel most of the time except for a rise and fall in May of this year.

EOS exchange rate

EOS set a historic high in April 2018 at around $22.71. At the time of writing, the coin is down almost 86 per cent from that mark.

Monero (XMR).

Another candidate for the title of outsider is the altcoin Monero, which focuses on transaction privacy. The cryptocurrency is of great interest to law enforcement and regulators, as it remains a great vehicle for fraudsters to transfer funds anonymously.

Monero exchange rate

For regular investors, however, XMR has not been interesting this year. For most of the time, the coin’s price has not risen above $300, with it now trading 66 per cent lower from its all-time high set in January 2018.

Overall, the table of changes in the value of popular cryptocurrencies by month and for the year as a whole looks like this. As you can see, some projects have increased in value by more than 10 thousand percent.

Chart of cryptocurrency price changes by months and for 2021 as a whole


We believe that these statistics clearly show how profitable the cryptocurrency industry can be if you follow the trends within the digital asset niche. If you don't and continue to believe in projects from previous cycles, then you could lose money - or at least earn not as much as you could.


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