2021 is finished, and we will examine the efficiency of high cryptocurrencies in contrast with the primary coin for the previous yr. I promised to construct this leaderboard in my earlier submit the place I in contrast fiat currencies with gold.
The crypto universe repeatedly extends as new cash and tokens seem within the enviornment one after the other. I put the highest ten largest cryptocurrencies by the market cap towards Bitcoin on this submit. I skipped stablecoins and Shiba Inu coin because the latter has lower than one yr of historical past.
Diagram by Aibek Burabayev; knowledge supply: Binance
It was an excellent yr for Bitcoin, gaining virtually 60% towards the U.S. greenback in 2021. Nonetheless, in its personal digital universe, it was the loser to all high cryptocurrencies, as you’ll be able to see within the comparability above.
Let’s examine the highest three leaders.
The champion of 2021 is the MATIC token, which has gained a superb 8,854%. This can be a native coin of the Polygon platform, which represents the layer 2 scaling resolution for the Ethereum blockchain. It affords faster and cheaper transactions to the distinguished however comparatively gradual and costly Ethereum ecosystem. Subsequently, it’s exploding in recognition and value, particularly in comparison with Ethereum itself.
Two issues are price noting right here about Polygon. Firstly, we see that traders most well-liked scaling options for already established blockchains like Ethereum to the brand new layer 1 platforms. It might change as soon as the newbies show to be viable, overcoming present limitations of matured blockchains and addressing environmental points.
Secondly, this platform survived via a harmful vulnerability scenario that occurred final December when roughly 92% of the community was at risk. 801,601 MATIC (circa $2 million on the time) have been stolen from the community earlier than it was fastened. The Polygon basis has since resolved to “bear the price of the theft.” The group swiftly fastened the issue inside 2 days. MATIC’s value rode a curler coaster these days falling from $2.4 to $1.55 (-35%) and bouncing again to $2.2 (+42%). Scary volatility! Regardless of the existential disaster, the value established the brand new all-time excessive later the identical month at $2.923 amid the sturdy perception of traders.
The #2 spot is the LUNA coin of Terra blockchain that booked an enormous revenue of 8,087% in 2021. It’s noteworthy that this protocol makes use of fiat-pegged stablecoins (U.S. greenback, South Korean gained, Mongolian tugrik, and the Worldwide Financial Fund’s Particular Drawing Rights basket of currencies) to energy price-stable world fee programs.
On the finish of December, the essential milestone had been achieved, as Terra grew to become the second-largest DeFi community after Ethereum with $18 billion price of belongings locked. This was the primary driver of an enormous natural demand for its LUNA token.
The Solana, aka “Ethereum killer,” ranked #3 with a candy +6,962% achieve in 2021 towards Bitcoin. It was the third crypto added to the Bloomberg Terminal after titans of the market Bitcoin and Ethereum. Moreover that, the world’s greatest digital foreign money asset supervisor, Grayscale Investments, has added Solana to its portfolio final yr. One other excellent consequence has been achieved on the finish of final yr when the depend of month-to-month energetic customers of Solana’s Phantom pockets handed 1.8 million after 9 months for the reason that begin.
Formally launched in March 2020, this “new child on the block” was fast to interrupt into the highest market cap checklist at #4 (excluding Tether).
The complete rating for Y2021 follows:
1. Polygon (MATIC) +8,854%
2. Terra (LUNA) +8,087%
3. Solana (SOL) +6,962%
4. Dogecoin (DOGE) +2,071%
5. Avalanche (AVAX) +2,054%
6. Binance Coin (BNB) +757%
7. Cardano (ADA) +351%
8. Ethereum (ETH) +212%
9. Ripple (XRP) +136%
10. Polkadot (DOT) +80%
Please remark in your selections and spot uncovered choices to broaden our horizons on the Weblog.
I want a worthwhile yr forward to all of you!
INO.com Contributor, Metals
Disclosure: This contributor has no positions in any shares talked about on this article. This text is the opinion of the contributor themselves. The above is a matter of opinion offered for common info functions solely and isn’t supposed as funding recommendation. This contributor is just not receiving compensation (aside from from INO.com) for his or her opinion.