Many cryptocurrencies today are experiencing phenomenal runs. Some of them have been here for a long time, while others just arrived at the scene. Nevertheless, we can safely say that 2020 has been pretty good for cryptocurrencies, and the best is yet to come.
One of the reasons for this is the rise of institutional investors who have channeled their money to crypto. Prior, only retail investors believed in crypto. But now, the scene is different.
In another article, we listed the final top 10 best performing coins of 2020. Will the cryptos remain in the same spot, or will the ranking change in 2021? We can only wait and see.
But here, we take a guess at the expected top 10 cryptocurrencies of 2021. We picked the crypto assets based on current market trends, our observations, and big developments. However, take this information with a grain of salt. Also, do not take any content in this article as investment advice.
Now that 2020 is all said and done, let us now take a look at the top 10 cryptocurrencies in 2021.
1. Bitcoin (BTC)
Though the world saw a drastic drop in economic output, Bitcoin managed to scale through setting a new all-time high record in 2020. At the beginning of the year, people considered BTC a fringe investment. However, it quadrupled in price settling at $29K, at the time of writing. With this, BTC has managed to be amongst the top ten cryptocurrencies in the crypto market.
As the chart indicates, Bitcoin is well on its way to make even steeper climbs this 2021. We can even assume that $30,000 is not a difficult climb for BTC, given its performance. Also, the rise of institutional investors helps the crypto gain more wind to power its sails.
For example, PayPal has enabled all of its users to have access to Bitcoin. The demand is increasing, as the FUD on fiat markets continue. Furthermore, Bitcoin has also surpassed the market worth of various S&5 500 companies.
These updates are just some of the reasons why experts believe in Bitcoin. In fact, Citibank even predicts that Bitcoin will hit $318,000 toward the end of 2021.
With these, we can definitely say that Bitcoin will remain the top cryptocurrency this 2021. Also, check out our Bitcoin price prediction 2021.
2. Ethereum (ETH)
This has been an exciting year for the crypto market, and ETH has also experienced massive improvements. The coin began the year with a price of only $132 per unit.
By the end of 2020, its price went up by nearly five times, sitting above $700, at the time of writing. The enthusiasm and growing adoption of crypto by the global community has had a positive effect on ETH as well.
As mentioned above, ETH has had an impressive rally in 2020. The rise of DeFi has helped it improve its liquidity and use cases. As such, the chart reflects ETH’s performance.
Additionally, as the crypto market continues to give enough space for DeFi to grow, the adoption of ETH increases. Consequently, we can see the 50-day Exponential Moving Average (EMA) making a sharp climb.
With these facts at hand, we can say that Ethereum will remain the second-best cryptocurrency in 2021. Also, check out our Ethereum price prediction 2021.
3. Litecoin (LTC)
On the positive trend, Litecoin is among the altcoins that have seen major improvements in the year 2020. Notably, Litecoin managed to relaunch the MimbleWimble testnet. It is a protocol designed to enhance privacy and obfuscate the traceability of distributed ledger transactions. With this, the market sentiment is expected to improve.
Litecoin managed to pull off a number of miraculous tricks to help it become one of the top cryptocurrencies this 2021. Dubbed silver to Bitcoin’s gold, Litecoin has shown that it can perform in a similar fashion to its big brother.
As the chart shows, LTC is also having a steep climb similar to Bitcoin and Ethereum. Because of this, we can assume that LTC will take one of the top 5 spots this 2021. Also, many people who think Bitcoin is too expensive to invest in at the moment may choose Litecoin. Of course, Litecoin would be perfectly happy with that.
4. Cardano (ADA)
Cardano has managed to flourish and has achieved a lot in the year 2020. Along with celebrating its third anniversary, Cardano achieved a big milestone and rolled out the Shelley hard fork. This meant the beginning of Cardano’s transition from a federated blockchain to a decentralized and robust network of independent stake pools.
Cardano has stayed faithful to its calling, staying on track with its progress and roadmap. In fact, Santiment detected that Cardano devs were the most active on Github, a popular repository for programmers.
Aside from the Shelley upgrade, Cardano also achieved a number of milestones. For example, Cardano has started a hard fork to enable token locking while the team also began to work on Goguen, the next big upgrade for the Cardano blockchain.
Surely, the Cardano team and community are sure to help ADA become one of the expected top cryptocurrencies in 2021.
5. Binance Coin (BNB)
One of the hottest coins right now is Binance Coin. The coin is used by holders to pay the fees levied by the exchange for trading. Binance completed its initial coin offering (ICO) of 100 million BNB on July 21, 2017.
However, the company reportedly plans to spend 20 percent of its profits each quarter to buy back and destroy Binance Coins so as to maintain a steady price.
In a surprising turn of events, Binance Coin has finally broken past the $30 psychological resistance. Its rally may appear unstoppable since the next psychological resistance level at $40 is already on the horizon.
True enough, BNB is undervalued, as said by TokenInsight. As Binance exchange continues its dominance in crypto trading, we can expect BNB to rise even higher.
6. Wrapped Bitcoin (WBTC)
WBTC has been a vital part of the DeFi space in 2020. More so, this year, the TRON network partnered with custody specialist BitGo to bring WBTC into the TRON ecosystem as a TRC-20 token. Notably, the coin was created to enable Ethereum users to buy, hold, and trade Bitcoin within the Ethereum ecosystem.
Perhaps one of the most surprising entries to our expected top 10 coins of 2021 is Wrapped Bitcoin (WBTC). This is due to the fact that its price is only tied to BTC, and it has yet to prove much.
In spite of this, WBTC is already occupying the 12th spot on CoinGecko, surpassing even Bitcoin SV, Monero, EOS, Stellar, and TRON. Moreover, DeFi protocols and crypto exchanges allow users access to WBTC. This is a good solution for people who want to access BTC on Ethereum.
Given these, we can expect WBTC to improve its availability and become one of the best cryptocurrencies to invest in 2021.
7. Polkadot (DOT)
Polkadot has managed to perform well this year especially after attaining two votes of confidence from Binance. The leading crypto exchange listed Polkadot on its home page. Moreover, Binance announced a $10 million fund to support projects on Polkadot. This has managed to make the DOT price rise up so well.
So far, DOT’s ATH is around $8.22. At this rate, we can expect it to rise even higher in the next weeks and months to come. Also, at the time of writing, each DOT is worth $7.99. Furthermore, it has a 24-hour volume of $1,424,965.517 and a market capitalization of $7.7 billion.
Also, check out our Polkadot price prediction 2021.
8. Vechain (VET)
VeChain has also shown some great performances throughout the year. This results from projects like VeChain developing the E-HCert App in collaboration with the Mediterranean Hospital of Cyprus to store COVID-19 test records.
Also, the VeChainThor blockchain recently received a 5-Star-Rated Blockchain Service Certificate from TÜV Saarland, a European certification body.
VeChain’s price movement for the first half of the year seemed pretty non-volatile except for the March-to-April dip. However, the situation changed in the second half. In fact, we saw it attempt to exceed its August 2019 ATH of almost $0.030.
At the time of writing, VET holds the 26th place on CoinGecko. It also has a current price of $0.019, which is close enough to the 2020 ATH of $0.022.
On the other hand, VeChain has struck significant partnerships with well-known companies and institutions. These include luxury carmaker BMW, who collaborated with VeChain for the VerifyCar DApp. Another is with the Royal Melbourne Institute of Technology (RMIT), which is working together with VeChain to explore blockchain.
Given these, VeChain has a good chance to rise through the ranks and possibly hold one of the coveted positions within the list of top ten cryptocurrencies for 2021.
9. Uniswap (UNI)
Uniswap has managed to set a superb record in 2020. Firstly, in September it surpassed Coinbase’s monthly trading volume. Additionally, in August, Uniswap exceeded Coinbase Pro in daily trading volume for the first time. Uniswap processed $426 million while Coinbase had witnessed only $348 million in their 24-hour trading volume. More so, Uniswap is the number one gas burner on Ethereum.
Despite being a newcomer, the UNI token has shown considerable performance in the last months. As the chart shows, UNI is already starting to show signs of recovery after months of continuous sell-offs. This is due to people dumping their UNI after buying it en masse during its launching.
Of course, UNI has yet to prove that it will be one of the top ten cryptocurrencies in 2021. In fact, it is currently ranked 36th on CoinGecko. However, a number of best-performing cryptocurrencies in 2020 were not even on the list consistently in the said year. Some of these include Polkadot, Cardano, and Chainlink.
Given that, Uniswap is one of the best decentralized exchanges (DEX) out there. It is also one of the frontrunners within the DeFi space. As long as DeFi remains a powerful subculture, UNI will always have a shot at the top 10.
At the time of writing, the UNI price is at $4.49 at CoinGecko.
10. Bitcoin Cash (BCH)
Our list for the top 10 cryptocurrencies to look forward to in 2021 will not be complete without Bitcoin Cash. Despite a number of issues in terms of consensus, none can deny that it is a top performer.
As the chart shows, BCH fared better from December 2019 until the first two months of 2020. Inadvertently, this is because the Bitcoin Cash community got into a disagreement regarding some protocol upgrades. Hence, the Bitcoin Cash blockchain took another hard fork instead of a mere protocol update.
Earlier this year, Bitcoin Cash ranked 5th on various cryptocurrency ranking sites such as CoinMarketCap and CoinGecko. However, it got relegated to the 7th place due to FUD brought about by the disagreement between the BCHN and the Bitcoin ABC camps.
Nevertheless, Bitcoin Cash remains part of the top 10 cryptocurrencies today in terms of market capitalization. It is ranked 7th on CoinGecko and has a market cap of $6.5 billion at the time of writing.
Also, check out our Bitcoin Cash Price Prediction 2021.
Indeed, making a guess at the expected top 10 cryptocurrencies in 2021 is a difficult task. But that is the fun thing in crypto: you never know what will happen next. That said, we also encourage you to check out our picks for the best cryptocurrencies to invest in 2021.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.