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The best cryptocurrency returns in 2021

The year 2021 saw the cryptocurrency markets boom and mature, with different sectors booming and largely outperforming the market leader, Bitcoin.

While Bitcoin managed to recover only 59.8% last year, the overall market capitalization of the crypto sector grew by 187.5%, with many major coins offering returns of four or even five figures.

Crypto Market Roundup for 2021

The past year has not only been a breakthrough year for cryptocurrency in terms of returns, but also the maturity of the growing infrastructure and the resulting correlation between the individual crypto and coin industries.

Crypto infrastructure has developed greatly and now there are many onramps for people to buy altcoins that do not require purchase and use Bitcoin in operation. As a result, the prices of many cryptocurrencies have been dictated more by the value and functionality of the protocol and applications rather than their connection to Bitcoin.

Cryptocurrency category 2021 revenue
Bitcoin Cryptocurrency 59.8%
Ethereum smart contract platform 399.2%
Binance coin Code exchange 1,268.9%
Solana smart contract platform 11177.8%
Cardano smart contract platform 621.3%
XRP Cryptocurrency 277.8%
Tera smart contract platform 12,967.3%
Avalanche smart contract platform 3334.8%
dotted smart contract platform 187.9%
Dogecoin Mimi Queen 3,546.0%

Sources: TradingView, Binance, Uniswap, FTX, Bittrex

Bitcoin wasn’t the only cryptocurrency that couldn’t reach triple-digit returns in 2021. Litecoin and Bitcoin Cash also delivered meager double-digit returns, as payment-focused cryptocurrencies were largely ignored for projects with smart contract capabilities. .

Other legacy projects such as Stellar Lumens (109%) and XRP (278%) provided triple-digit returns, with Cardano (621%) outperforming the old guard despite not being able to ship smart contract functionality last year.

The rise of Ethereum competitors

Ethereum significantly outperforms Bitcoin in 2021, returning 399.2% with a boom in popularity NFTs The creation of DeFi 2.0 protocols such as Olympus (OHM) has expanded possible use cases.

but with the rise network activity50% increase in conversions in 2021, Ethereum gas fee soared. From a minimum of $20 for a single transaction, to NFT mint rates that start around $40 and go into the hundreds on busy network days, the crypto-retail crowd has migrated to other smart contract platforms with lower fees.

Emerging alternative smart contract platforms like Solana (11,178%), Avalanche (3,335%), and Fantom (13,207%) all have 4-5 digit returns, as these protocols have built their own decentralized finance systems and NFT Markets.

With Ethereum set to merge into Beacon Chain this year, which uses Proof of Stake instead of Proof of Work, we will see if 2022 brings lower fees for gas and a return of hashing to Ethereum if the merger is successful.

Dog meme coins their way to the top

While many new cryptocurrencies with powerful functionality and unique use cases have been rewarded with solid returns, it was memes that delivered the biggest returns in cryptocurrencies in the past year.

The Dogecoin boom after Elon Musk “adopted” several other dog coins saw SHIB benefit the most and return 19.85 million percent.

But since the price of Dogecoin rose from $0.07 to $0.74 in the second quarter of last year, the price of the original meme has slowly fallen -77% to $0.17 at the time of writing. After riding a rollercoaster last year, 2022 began with a positive stimulus for Dogecoin holders, with Elon Musk declaring that DOGE could be used in buying Tesla merchandise.

Crypto Industry Games

The intersection of cryptocurrency, gaming, and the metaverse is becoming more than a distant dream in 2021. Axie Infinity was the first native crypto game to succeed in creating a play to earn an architecture that combined its native token (AXS) and in-game NFTs, becoming a sensation and source of income For many in the Philippines.

Other crypto gaming projects such as Defi Kingdoms are putting distinct gaming interfaces on decentralized finance applications, where the decentralized exchange becomes the “marketplace” in the city and the crop farms are the “gardens” where the revenue is harvested. This imaginative aesthetic is more than just a fresh coat of paint, as is the project $1.04 billion From the total value locked is to develop a core game that works for profit.

Besides the stimulus, 2021 saw the original and non-cryptocurrency developers focus more on the digital worlds or metaverses that users would inhabit. Changing Facebook’s name to Meta increased the two major metaverse projects Sandbox (SAND) and Decentraland (MANA) a few hundred percent more to finish the year in 16,261% and 4,104% returns, respectively.

With so many eyes set on the crypto sector after 2021, we will see how the development of US regulations and changing macro conditions will affect cryptocurrencies in 2022.