Will See The Next Cryptocurrency Explode. Other cryptocurrencies are now dominating, so move over to Bitcoin. While much of the financial world was focused on Bitcoin, others were buying up altcoins that could be the next big thing in cryptocurrency. Many more will be losers or even total failures, while some could be winners. A small number will turn out to be scams and go away.
But in a world where Dogecoin, made as a joke, and other meme coins and stocks can soar in price like never before, anything is possible, and the most profitable opportunities are always in the last place you would expect.
Here are some coins, some of which are obvious and others of which are not, that could be the next cryptocurrency to explode in 2021.
It is by far the most bullish cryptocurrency in the market right now, starting with the more obvious of the bunch. Ethereum is much more bullish than Bitcoin, and many big names in finance, like Jim Cramer, are changing their portfolios to put more money into Ethereum than Bitcoin.
The entire crypto market is waiting for a “flipping” to happen, where Ethereum surpasses Bitcoin in market cap, but it might never happen. The long-term potential of Ethereum is unaffected by this, though.
A big chunk of the ETH supply is now locked up in ETH 2.0 staking contracts, and even more, is locked up in DeFi applications and other places. As a result, even less ETH is left on crypto exchanges, which could soon cause a supply shock and send prices through the roof.
The fact that all DeFi and NFTs require ETH to function properly makes Ethereum look much more like a currency than Bitcoin, which might be better suited as a store of value than a currency. Some people say that ETH should be seen as a commodity, which is why the fees for ETH are called “gas.”
Like precious metals, cryptocurrencies are extremely sensitive to supply and demand. Because there is a limited supply, the price of these assets increases exponentially in response to high demand. Gold prices have increased from $32 in the 1970s to more than $60,000. Bitcoin has only 21 million BTC and has gone from virtually worthless to over $60,000.
The COV token is a utility token that is even rarer than the Bitcoin coin, but it is similar to Ethereum in some ways that may affect demand. For example, instead of serving as currency, COV tokens can be “staked” in the Covesting module to give followers and strategy managers a wide range of advantages.
COV token staking locks up coins so that they are less likely to be sold into the market, much like how Ethereum being locked up in large numbers is causing prices to soar by taking more coins out of circulation. Unfortunately, almost 10% of the total supply has already been locked up, and COV token staking has only recently been made available.
When Covesting Yield Accounts, which give access to DeFi protocols and APY-generating solutions within the PrimeXBT dashboard, are introduced later in Q3 2021, more COV tokens will likely be locked up. PrimeXBT is an award-winning Bitcoin trading service.
The Covesting team also regularly burns tokens, taking them out of the supply. More than 500,000 coins have been burned, and keep in mind that any loss is significant with a supply as small as Bitcoin’s.
The explosion of innovation in and around Uniswap is the main reason for the development of DeFi and automated market-making platforms. Uniswap, for example, is built on Ethereum and allows users to trade top crypto tokens like COV and others without needing a centralized third-party exchange.
Users connect their Ethereum wallets directly to Uniswap and can trade their tokens or make them liquid in exchange for a very high APY. It has only been on the need for a short time, but it already has as much trading volume as some of the biggest centralized platforms in the industry.
It is now the hottest platform on the market, where new tokens can be launched easily using smart contracts and quickly funded by the liquidity providers who use the platform. Token holders of UNI tokens get governance and other unique benefits, but to make this list, all that’s needed is a relation to the hottest industry platform.
Internet Computer (ICP)
The ambitious project known as Internet Computer Protocol aims to decentralize the internet itself. Some of the most well-known venture capitalists in the industry, including Andreessen Horowitz and others, have supported it.
To the industry’s surprise, when the coin first debuted, it went straight into the top ten of the crypto market by market cap. However, the coin was sold immediately due to its high value of more than $750 per ICP. At its lowest point, the valuation plummeted to $25.
After such a big drop, the comeback could be just as big. Almost all the selling pressure was gone, and the coin went straight into a high-oversold condition. When ICP goes back up from $25 to $750, that’s a 30x gain, and that’s only if the coin goes back to its all-time high. ICP could be the best cryptocurrency player right now.
Lite coin is a complete shocker on this list. Everyone likes to criticize Litecoin, which is one reason why it might be the coin that surprises everyone the most. It hasn’t moved in years and has some of the worst sentiment, but when that sell pressure stops and sentiment changes, this coin could move like no other.
When Litecoin breaks its previous record, it is also historically the cryptocurrency that moves the fastest to a new all-time high. However, unlike Bitcoin and Ethereum, Lite coin hasn’t reached a new high yet, and when it does, its value could triple almost instantly.
Like Bitcoin, Litecoin has a limited supply, is favored by Grayscale Investments, and is a much greener cryptocurrency than Bitcoin and others. If you can get past the negative feelings left over from the last bear market, Litecoin has much going for it.