Top 10 Digital Assets in 2021: A Market Overview

by Gordon James

The digital asset market is booming: total bitcoin market capitalization rose in the first quarter. The 2021 quarter was over $1 trillion.

In this guide, discover the top ten digital assets by market capitalization to get an idea of what crypto investors are most excited about in early 2021.

Bitcoin (BTC)

Bitcoin dominates the crypto currency market at 61.2% and has the largest market capitalization of over $1 trillion. Bitcoin’s dominance is due to its global popularity and its potential as an alternative to traditional investments like gold and stocks.

Institutional investors were keen to increase their stake in bitcoin in 2021. For example, MicroStrategy’s total assets in BTC were approximately $4.4 billion. Moreover, companies like Tesla have not been left out of the recent bitcoin buying frenzy. In February 2021, the electric car company revealed that it had acquired $1.5 billion in bitcoins and may acquire more and own digital assets from time to time.

Over the past 12 months, bitcoin has significantly outperformed all major asset classes. The latest weekly report from Goldman Sachs US Kickstart shows that bitcoin’s year-on-year return is around 70%, almost double that of the energy sector, which is its closest competitor at around 35%.

On 1. In January 2021, bitcoin closed at $29,374.15. Eight days later, the cryptocurrency surpassed $40,000, but did not reach that amount at the market’s close on Jan. 10 to drop below that price. The price of bitcoin remained near $40,000 for several days, until the 16th. February, when it reached $50,341.10. In mid-March, bitcoin reached a new high of over $61,000.

Ethereum (ETH)

Ethereum has been very strong in 2021, reaching new all-time highs and securing market dominance of around 12%. ETH currently has a market capitalization of $205.4 billion.

In 2021, the price of Ether stood at $730.37 at the close of trading at 1. January. Two days later, ETH won $1,006.57 for the first time. The second one. In February, the ETH climbed to over $1,500 and reached $2,036.29 later in the month, plunging to a new all-time high.

The explosion of DeFi in 2020 and non-interruptible tokens (NFT) in 2021 have made Ethereum very popular. However, DeFi projects, decentralized applications and the NFT craze are seriously overloading the Ethereum network. As a result, the cost of Ethereum has increased tenfold in the last twelve months.

Ethereum developers are planning an update to the network that should take effect this summer. The EIP-1559 upgrade is part of a larger plan to upgrade Ethereum 2.0. As a result of the upgrade, the payment system for transactions will change. Instead of sending fees to miners, users will send fees to the network. These fees are then burned to reduce ETH’s total stock.

Some miners are against this update and are mobilizing to disrupt the network update. Ethereum mining pool, SparkPool, is one of the opponents of the review.

However, Ethereum has had a positive impact on the blockchain space since its release in 2015. It will be interesting to see how it develops in light of the current challenges and increasing competition from other blockchain platforms.

Financial Annex (NBB)

Binance Coin is the third largest digital asset by market capitalization on Coinmarketcap. Domestic cryptocurrency Binance Chain has performed well in 2021, reaching a market capitalization of $39.5 billion.

On 1. In January 2021, BNB posted a closing price of $37.91. The cryptocurrency reached a record high at 1. February $51.61 and closed on the 9th. February at $107.90. The next day, BNB reached a new historic high of $148.07, followed by a new high of $342.88 on the 19th. February. Since then, the price of the NBB has remained largely above $200.

BNB’s rise may reflect speculation that Binance will dominate the crypto industry in the future. In addition, the February report from the NBB. 19 The price increase could be supported by the growing interest in PancakeSwap, which has dethroned Uniswap to become DeFi’s leading token. PancakeSwap is a decentralized exchange (DEX) running on Binance Smart Chain (BSC). BSC is a smart contract blockchain system that works in parallel with Binance Chain.

Cable (USDT)

Transfer is the largest stable of dollar-denominated companies, with a market capitalization of $38.5 billion.

Unlike other top 10 crypto assets, USDT offers price stability because its purpose is to act as a digital dollar for the crypto-capital markets.

While Tether offers a solution to cryptocurrency volatility, it has long been controversial and its dollar support is regularly questioned. The most recent controversy involves a case where cryptocurrency exchange Bitfinex used Tera funds to hide $850 million in losses. The Exchange then falsely claimed that the funds had been saved. In February 2021, Tester and Bitfinex, one of its parent companies (iFinex), agreed to pay an $18.5 million fine to resolve the situation.

Cardano (ADA)

Cardano is another smart contract blockchain with a market capitalization of over $33 billion.

Cardano’s performance has been impressive over the past 12 months, with a symbolic jump of over 2,000% in ADA prices. As a result, Cardano has attracted the attention of investors like billionaire Michael Novogratz, who has been trying to get information on the asset.

On 1. March 2021 Cardano developers implemented a protocol update called Mary that allows users to create tokens. Cardano is currently a multi-asset chain that can support asset tokenization.

The opening price of the ADA at 1. January 2021 was $0.18. On the last day of January, the price rose to $0.37 and reached an all-time high of $1.48 on February 27.

Cardano doesn’t have a popular app yet, which leads some to wonder how popular it is.

I don’t know of any popular apps being used on Cardano, and I haven’t seen any enthusiasm for the platform from developers, said Nic Carter, co-founder of Coin Metrics.

Polka Dot (DOT)

Another potential Ethereum killer is Polkadot, an open-source sharding protocol that enables data and token transfers between targets. Some industry players believe that it can surpass Ethereum and become the best smart contract platform on the market. The cryptocurrency DOT currently occupies sixth place with a market capitalization of $32.6 billion.

The DOT started 2021 at $9.29 and then rose to more than double that on January 16 at $19.32. On the sixth day of the following month, the crypto asset reached a high of $21.30. On the 20th. In February, the DOT then reached a record high of $42.32. Since then, the digital asset has held a price above $30.

Polka dot is popular because it facilitates innovation. According to Derek Yu, founder of Moonbeam, who works for Polkadot, people are excited about the protocol.

Most people who use Polkadot are developers. They are creating new blockchains or decentralized applications and finding ways to connect existing blockchains with a new kind of polka dot, he said.

Pulse (XRP)

XRP Ripple used to be in the top 3 of the crypto asset rankings, but has since dropped in the rankings. Despite being sued by the US Securities and Exchange Commission, XRP has managed to keep its place in the top 10 cryptocurrencies. XRP has a market capitalization of $19.9 billion.

Ripple began 2021 with a high of $0.24 on January 1, followed by a high of $0.74 on January 1. February. Since then, however, XRP has not risen above this price level. He also did not surpass his record of 4th place. January 2018 of $3.84.

Ripple Labs has ended its partnership with Moneygram and sold its stake in the money transfer company.

We are proud of the work we were able to do in a short period of time and the impact we were able to make in bringing this unique product to market. Together, we have traded billions of dollars through RippleNet and On-Demand Liquidity (ODL), Ripple wrote in a statement.

Interestingly, the Bank of France is reportedly considering using the XRP blockchain to launch its central bank digital currency (CBDC).

Uniswap (UNI)

Uniswap is the largest decentralized exchange (DEX) on the Ethereum network, and its token, UNI, has a market cap of $15.6 billion. DEX does not charge companies for listing their tokens and listing 845 digital assets.

On the 1st. In January 2021, UNI posted a high of $5.27. Over the next few weeks, the price rose to a high of $20.69 on February 1 and a record high of $34.87 on February 8. March 2021. That’s an increase of over 8,000% from the low of $0.41 on the 17th. September 2020.

Litecoin (LTC)

Litecoin is the ninth largest asset by market capitalization and one of the largest since the early days of cryptocurrencies.

LTC started 2021 with a high of $133.19 on the 1st. January. Then he gained momentum and reached 4th place. January and 7. January’s highest prices are $173.03 and $180.87, respectively. LTC reached 18. February: a high of $238. However, the crypto asset did not exceed the threshold on December 19, 2017. ATH of $375.29. LTC has a market capitalization of $13.4 billion.

Litecoin founder Charlie Lee sold and donated all of his LTC shares in 2017 to avoid a conflict of interest. It’s a conflict of interest for me to hold the LTC and tweet about it because I have a lot of influence, he said.

Chain link (LINK)

Chainlink, a decentralized network of oracles, ranks tenth with a market capitalization of $11.3 billion.

LINK started 2021 with a high of $12.39 and reached a high of $12.39 on the 20th. February a record of $36.83. Since then, the price has fluctuated between $20 and just over $30. Year to date, LINK’s share price is up over 21,000% from a historic low of $0.12 on the 23rd. September 2017.

One of the reasons for Chainlink’s popularity is that it provides secure, state-of-the-art data channels with cryptographic pricing essential for DeFi applications. In February 2021, Chainlink introduced off-chain reporting (OCR) on its core network to evolve its Oracle network.

While BTC and ETH hold their positions for a long time, other digital assets are constantly moving from one rank to another. Therefore, it will be interesting to see if any of the above cryptocurrencies can maintain their current position.

The information contained herein is for informational and educational purposes only and should not be construed as financial or investment advice.  Investing in ICOs, IEOs, cryptocurrencies or tokens is highly speculative and the market is largely unregulated. Anyone considering doing this should be prepared to lose their entire investment.

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