2021 was a crazy year especially for altcoin projects. Today, Cryptocoin. com we’ll take a look at some of the top performers. It is also worth noting that it is doubtful whether the market would have emerged this way had it not been for Bitcoin’s excellent performance, both in terms of price and adoption. While its value has not increased as much as some altcoins, BTC remains the driving factor in the space and the springboard for the vast majority of projects.
8 most influential altcoin projects in 2021
Ethereum (ETH). Much of what happened in 2021 sounds like it’s because of Ethereum. 2021 was important to the network for several reasons. In August, the protocol implemented the London hard fork. This upgrade drastically changed the tokenomics of ETH by integrating Ethereum Improvement Proposal (EIP) 1559. In essence, this transformed the structure of ETH by reducing the inflation rate as it is now a deflation mechanism. In fact, at one point, the combustion rate was higher than the emission rate, albeit for 24 hours. This, along with other factors like general bullish market conditions, DeFi boom, immutable token craze, and more, are just some of the reasons for ETH’s strong performance against BTC.
Dogecoin (DOGE). While many might see Dogecoin as a joke, 2021 was the year the project managed to prove otherwise to people. At the time of this writing, DOGE is the 12th largest cryptocurrency with a market cap of over $23 billion. It has been at the forefront of the memecoin craze, one of the hottest trends of the year, and is undoubtedly responsible for bringing so many newcomers to the world of cryptocurrencies. Intensely driven by the world’s richest man, Elon Musk, DOGE has been featured in many TV shows for a while. While Musk said that it is better suited to be used as a currency than Bitcoin, he also made it clear that Tesla would accept it for some of its products.
Shiba Inu (SHIB). It is unreasonable to consider any 2021 altcoin listing without including SHIB. We won’t go in-depth about SHIB’s developments over the year, but instead focus on the astonishing price increase. And since we don’t want to deal with a bunch of zeros, let’s talk percentages. In the last 12 months alone, the price of SHIB has increased by 44,234.210%. This means that a $1 investment would turn into $442,343. An investment of 1 cent could turn into $4,423.43. Whatever people think of SHIB, the astronomical giga-chad earnings alone justify it being on the current list.
Solana is also on the list
Left (LEFT). Solana achieved something special in 2021, both in terms of price performance and overall improvements. Amid a community of dedicated and enthusiastic users, it has established itself as a leading layer protocol, despite its own problems that it has to face. It has seen developers shift from Ethereum to it in search of a scalability solution, as users populate the network in search of faster transactions and lower fees. Data from DeFi Lama shows that the total value locked in Solana is currently around $11.5 billion, which is a tremendous increase. For comparison – it was less than $150 million in March this year.
Binane Coin (BNB). BNB has been at the forefront of the Binance Smart Chain craze we observed earlier in the year. As users searched for Ethereum alternatives and desperately demanded more affordable, faster and scalable DeFi primitives, BSC emerged as a response. In February of this year, the network’s unique addresses tripled in less than a week. This growth accelerated even more and suddenly everyone was obsessed with finding the next big thing on the Binance Smart Chain.
Avalanche (AVAX). Avalanche is another layer one protocol that really takes off in 2021. The rise in the price of the popular altcoin AVAX seems to be directly related to the growth of its ecosystem. Recently, Circle announced the launch of its USDC stablecoin on Avalanche to strengthen the native DeFi ecosystem. Avalanche has gained tremendous value locked into the various protocols running in its ecosystem and has built great partnerships all year long. Aave is deployed on it, OpenOcean is also integrated into the network.
Axie Infinity (AXS). Axie Infinity’s AXS token is one of the strongest players to surprise everyone in 2021. While it didn’t make the same gains as the SHIB, it’s definitely one of the contenders. The cryptocurrency is 18% in 2021. It has risen to slightly less than 000, but that’s not the most impressive. AXS proved itself as the first play-to-win game and paved the way for a trend that would later become one of the trendiest in the industry. Axie Infinity is a game where users can buy characters named Axies, breed them, train them, increase their abilities and finally step into or play adventure world against other players.
Luna (LUNA). LUNA is the cryptocurrency of the Terra ecosystem and is definitely one of the most ambitious lately. As of the time of this writing, the total value locked in Terra is almost $19 billion. For comparison – last December it was around $3 million. Interestingly enough, BSC has become the second largest network on this metric after Ethereum, surpassing the likes of Avalanche and Solana. A large part of Luna’s growth has been the general adoption of Terra USD, a decentralized algorithmic stablecoin based on Terra’s blockchain. It currently supports a market cap of $10 billion, making it the largest algorithmic stablecoin in the market and also the third largest stablecoin after USDT and USDC.