- Altcoins are here to stay and have huge growth potential for 2021.
- The top 5 altcoins that will blow up in 2021 are ETH, LINK, UNI, DOT, and AAVE.
Bitcoin may be king but altcoins are here to stay.
The word altcoin refers to just any cryptocurrency other than Bitcoin. That’s right, Bitcoin’s first move was so powerful and revolutionary, that all coins that entered the market after it is in a separate category altogether.
However, there’s no reason to give up hope on altcoins. In fact, there are chances that many cryptocurrencies will grow larger in 2021, even enough to pose a challenge to Bitcoin’s reign as market-topper.
So, without further ado, let’s look at the top 5 cryptocurrencies that will explode in 2021
Top 5 Altcoins
Created in 2013, Ethereum is smart contracts platform that hosts most major decentralized app (DApps) today. Bitcoin might be the first cryptocurrency but Ethereum is the blockchain that gathers and records data, as well as houses many different applications.
So, why is Ethereum expected to blow up this year? Let’s see. Just this month, its London Hard Fork update arrived, complete with its 5 EIPs. Promising to lower transaction fees as well as a deflationary mechanism, the update has already been followed by a massive bull run by ETH. Not just this, but the hype around Ethereum 2.0, is also pumping up its price. Once the transition completes, who knows how much ETH will jump.
As of now, Ethereum price is at $3,260, up 5 percent this week.
Chainlink leverages the power of smart contracts in the real world. Bringing outside data into smart contracts, Chainlink is one of the first networks to allow the integration of off-chain data into smart contracts. It is one of the major players in the data processing fields, with many notable partners.
With Chainlink, users can become node operators and earn revenue by running critical data infrastructure required for blockchains’ success. It uses a large collection of node operators to collectively power a wide range of Price Feed oracle networks.
Chainlink Priced at $29.94, the 12th-biggest coin is up by 20.16% this week.
Uniswap is Launched in 2018, but beginning trade only in Q3 2020, Uniswap is at that unique point in a cryptocurrency’s life where people have eyes on its every move.
Operating on Ethereum, Uniswap is a decentralized exchange or DEX primarily for trading cryptocurrencies and other tokens. DEXs are the next big thing in cryptocurrency trade, especially with all the controversies surrounding the more common, centralized Crypto exchanges such as Binance. Users are more and more looking to decentralized options as a way to cut out the middleman and take matters into their own hands.
Currently, its Uniswap price stands at $30.79, rising by 4% this week.
Polkadot, a much newer addition to the crypto space, has already wowed crypto traders worldwide. Launching as late as August 2020, Polkadot was quick to jump to the top 5 cryptocurrencies and has stayed there since.
Polkadot’s primary focus is making cross-chain transfers possible. This way, it enables a variety of different assets, and not just crypto, to be shared between different blockchains. As sure as we are about cryptocurrencies being part of the future, we feel the same about the next thing in blockchain tech to be multi-chain.
At the time of writing, DOT’s price is at $26.49. It has risen to $24.65% this week.
So… Why Aave?
As you can guess, decentralized lending offers higher interest rates than traditional, centralized lending. It also offers better security and anonymity. Lenders earn interest through depositing digital assets into specially created liquidity pools. From here, borrowers can use their crypto as collateral to take out flash loans using this liquidity.
AAVE provides its holders with discounted fees on the platform, and it also serves as the governance token for the platform. With the move towards decentralized finance and digital banking, this seems to have high potential to blow up.
Right now, its Aave price is $442.62, risen by 12% this week.