In this article, we discuss the 5 best performing cryptocurrencies of 2021. If you want our detailed analysis of the crypto market, go directly to 10 Best Performing Cryptocurrencies of 2021.
5. Solana (SOL)
Gain in Price in 2021: 9155.43%
Solana is a public blockchain platform that uses proof-of-stake and proof-of-history mechanisms that enable reliable and scalable DeFi transactions without compromising on decentralization and safety. Solana was launched in March 2020. The platform’s native token is called SOL.
Solana, which returned 9155.43% in 2021, allows incredibly short processing times and lower fees as compared to market rivals. SOL has attracted a lot of interest from small-time users, enterprise customers, and institutional investors.
The launch of the Degenerate Ape NFT on August 16, 2021 sent SOL’s price soaring, which primarily occurred due to higher developer activity on the Solana ecosystem. SOL’S price reached an all-time high of $216 on September 9, 2021.
On June 24, 2021, Swiss-based firm Digital Assets AG announced that it will tokenize multiple stocks such as Tesla, Inc. (NASDAQ:TSLA), Meta Platforms, Inc. (NASDAQ:FB), and Alphabet Inc. (NASDAQ:GOOG) on the Solana network, which increased the buzz around the coin.
4. Fantom (FTM)
Gain in Price in 2021: 12958.61%
Fantom is a fast, highly scalable open-source blockchain platform used for trading digital assets and providing decentralized finance services to developers. The Fantom platform uses a unique in-house consensus algorithm, and has allowed transaction speeds of under two seconds to developers. The native cryptocurrency of the blockchain platform is FTM.
Users of Crypto.com, a main portal allowing an entry point to digital assets for a worldwide community of over 10 million users, can purchase FTM with more than 20 fiat currencies, and spend the crypto at approximately 60 merchants globally via the Crypto.com Visa Card.
The total supply of FTM is 3.175 billion tokens, of which 2,134,638,448 FTM are currently in circulation, with the remaining coins subjected to gradual release through 2023. What sets FTM apart from other crypto is its unique mechanism, which allows considerably higher capacity and two-second transaction, in addition to superior security as compared to traditional proof-of-stake mechanisms.
FTM is also compatible with Ethereum and Binance Coin standards, in addition to its own Fantom OPERA tokens running in circulation. In 2021, FTM was one of the top performing cryptocurrencies of the year, offering a 12958.61% return.
3. Terra (LUNA)
Gain in Price in 2021: 13061.37%
Terra is a blockchain platform using stable-coins to create payment systems that are globally accessible, offering price stability and adoption of fiat currencies, as well as fast and affordable settlements. Terra was launched in April 2019, and Terra’s native token, LUNA, stabilizes the price of its stablecoins. LUNA has the functionality of a governance token, since its owners can submit and vote on government proposals. As of 2021, LUNA gained 13061.37%, and was one of the top crypto performers for the year.
Terra is largely supported by the Terra Alliance, which is a group of businesses and platforms endorsing the adoption of Terra and LUNA. In February 2019, Terra reported that e-commerce platforms from 10 countries were members of the alliance, which represents approximately 45 million users.
The Terra blockchain is secured with a proof-of-stake consensus algorithm, and there is a supply of 1 billion LUNA tokens available. In case users need more LUNA, the token is burned until it meets the demand, to maintain the price of Terra stablecoins.
2. Polygon (MATIC)
Gain in Price in 2021: 14105.50%
Polygon is a platform for Ethereum scaling and infrastructure development, allowing developers to build a multi-chain system that provides the advantages of Ethereum’s security and reliability. The native token for Polygon is MATIC, which secures the platform and allows due governance. MATIC runs as an Ethereum token.
Polygon is supported by Binance and Coinbase, and was created with the idea of enabling large adoption of cryptocurrencies by addressing scalability issues on multiple blockchains.
Polygon is structurally designed to support different decentralized finance protocols available in the Ethereum ecosystem, and uses a customized version of the Plasma framework, which is built around the proof-of-stake consensus mechanism. In addition to the PoS checkpoints, Polygon uses block producers to achieve increased decentralization, which also enhances the platform’s fraud-proof mechanisms.
MATIC tokens are released on a monthly basis, and the currently circulating supply is more than 4.8 billion tokens. Polygon offers a maximum capacity of 10 billion MATIC tokens.
1. The Sandbox (SAND)
Gain in Price in 2021: 15702.26%
The Sandbox was launched in 2011 as a platform supported by blockchain, where users can create, buy, and sell digital assets in a gaming format. The Sandbox offers a vibrant gaming community, with a decentralized platform that is powered by decentralized autonomous organizations and non-fungible tokens. The native SAND token allows for transactions on the platform, whose goal is to integrate blockchain into the gaming world. There is a maximum total supply of 3 billion SAND tokens.
The Sandbox has received endorsements from big shots in the gaming industry, including brands like Atari, Helix, and CryptoKitties. Leveraging user generated content, the Sandbox is building a metaverse where players enable further development of the platform.
The Sandbox is created on top of the Ethereum blockchain, which means that it is secured by the proof-of-stake consensus mechanism. SAND was one of the top gainers in the crypto world in 2021, returning 15702.26%.
You can also take a look at 10 Best Multibagger Stocks To Buy Now and 10 Metaverse Stocks to Invest In.
