Top 10 rating methodology
We used three criteria to select projects in the top 10. Although any such rankings are somewhat arbitrary, we disclose our methodology and allow the reader to evaluate the list for themselves.
Our criteria:
- CoinMarketCap ranking position.
When selecting promising coins, we focused on cryptocurrencies from CoinMarketCap's list of the top 30 cryptocurrencies, with a good reputation and transparent trading history.
We did not set out to analyze thousands of cryptocurrency projects to find an unpolished diamond that could grow 100 or 100 or 10,000 times in the next year.
They are just as likely to collapse to zero at any time. We focus on robust projects with the most attractive risk-return ratios.
- Annual Return on Investment
The graph contains historical data for selected coins and compares the return on investment (ROI) that traders could earn over the course of 2020.
This graph is often referenced by Benjamin Cowan. In the video, he tells us which cryptocurrencies showed the highest ROI between March and December 2020. Altcoins LINK, VET and ADA were in the top three, followed by XLM and ETH.
- Opinions of crypto market experts
This is the most arbitrary criterion. The cryptosphere has spawned many Influencers, commentators and analysts of all stripes, but everyone has their own opinion on their credibility.
We focus only on big names like Cowan, Kevin Swenson and Lark Davis.
Each coin's description includes a summary of its characteristics and operating principles, recent news that suggests a strong entry in 2021, and a forecast for long-term price dynamics.
10. Bitcoin (BTC).
Current rate: $31,000
Market capitalization: $583 billion
CoinMarketCap rating: 1
The top most promising digital currencies for 2021 starts with the orange king of the crypto market, bitcoin (BTC).
Created by a certain Satoshi Nakamoto in early 2009, the first cryptocurrency is essentially a distributed, decentralized registry in which users send funds directly to each other, in a peer-to-peer network, without intermediaries.
9. Stellar (XLM)
Current rate: $0.15
Market capitalization: $3.3 billion
CoinMarketCap rating: 13
Stellar (XLM) is a blockchain network for storing and transferring money. It was founded in 2014 to increase financial inclusion in different regions of the world and help companies transfer funds.
The main objective of the network is to offer a low-cost payment service with a transaction fee of only 0.00001 XLM.
Stellar has managed to integrate with several fintech companies. Several years ago it launched World Wire together with IBM. The platform provides transactions between different assets, such as stabelcoins.
It is also based on the idea of decentralization. The Stellar network allows voting in the decision-making process when companies are added to the ecosystem.
8. Tezos (XTZ).
Current rate: $2.2
Market capitalization: $1.6 billion
CoinMarketCap rating: 20
Tezos (XTZ) has created its own blockchain network for smart contracts. The project aims to avoid the mistakes of Ethereum and Bitcoin. Adaptability, open structure and the impact of validators on the network are its main advantages.
A recent update to the Tezos network, called Delphi, should cut gas fees by 75% and attract DeFi developers to the ecosystem. However, Tezos' applications do not end there; they include the latest trends in the cryptocurrency market, such as NFT, video games and the film industry.
7. Binance Coin (BNB)
Current rate: $38.8
Market capitalization: $5.7 billion
CoinMarketCap rating: 9
If 2021 becomes the year of cryptocurrency, trading platforms will be in the spotlight and get a lot of benefits. Cryptocurrency exchanges will benefit the most from the coming crypto-madness.
While cryptocurrency trading is actively shifting to decentralized exchanges, their well-managed centralized big sisters still retain the lead. And the largest of these is Binance.
6. Uniswap (UNI).
Current rate: $5.29.
Market capitalization: $1.4 billion
CoinMarketCap rating: 22
Binance is a prime example of how money flows to cryptocurrency exchanges. And if we combine the growing potential of trading platforms with the biggest cryptocurrency hits of 2020, which undoubtedly include decentralized finance (DeFi) and decentralized exchanges (DeX).
The leader in this niche is the exchange Uniswap with its UNI token. Although DeFi's impressive market boom collapsed in early September, the industry's popularity will continue to grow in 2021.
5. Ethereum (ETH).
Price: $1030
Market capitalization: $117 billion
CoinMarketCap rating: 2
When listing the most promising cryptocurrencies, one cannot help but think of Ethereum. The year 2021 promises to be a success for this second largest crypto project and its currency Ether (ETH).
Unlike bitcoin, the Ethereum blockchain is a decentralized system that provides a platform for many other cryptocurrencies and smart contracts.
4. Polkadot (DOT)
Price: $9.49
Market capitalization: $8.5 billion
CoinMarketCap rating: 6
Polkadot (DOT) is an open-source, sharding-based protocol that allows data and tokens to be transferred between different blockchains. Such interoperability is intended to create a fully decentralized and private network for developing applications and services.
The DOT project's native token performs several functions at once. It is a management token, an operating token, and also provides for the creation of parallel chains (so-called parachemes).
3. cardano (ADA)
Price: $0.23
Market capitalization: $7.4 billion
CoinMarketCap rating: 8
Cardano (ADA) is another ambitious project. According to Cardano team leader Charles Hoskinson, a well-known crypto-enthusiast, its goal is to provide the tools necessary for creators, innovators and dreamers to change the world for the better.
Cardano wants to redistribute power, taking it away from faceless, centralized structures and placing it in the hands of individuals willing to create a safe, transparent and just society.
2. VeChain (VET).
Price: $0.025
Market capitalization: $1.6 billion
CoinMarketCap rating: 21
Project VeChain (VET) has carved out a niche in the blockchain technology ecosystem focused on decentralized business applications, supply chain management and the Internet of Things (IoT).
The goal of VeChain is to increase the efficiency and transparency of all shipment-related procedures, as well as reduce associated costs and give individual users more control over the situation.
1. Chainlink (LINK).
Price: $14.3
Market capitalization: $5.7 billion
CoinMarketCap rating: 10
2020 was a breakthrough for Chainlink (LINK). This project's coin has firmly established itself at number one in the blockchain oracle segment, and has also broken into the top 10 cryptocurrencies.
The fundamental drivers behind Chainlink's increasing growth are the healthy growth of its ecosystem (which currently has over 350 partnerships) and the broadening mass adoption in a variety of areas of the global economy.
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