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The 8 Most Influential Altcoins in 2021

                                                            Ein weiteres Jahr ist vergangen und in der Cryptowährungsbranche sind so viele Dinge passiert, dass es schwer zu begreifen ist, dass alles innerhalb von 12 Monaten passiert ist.

In this article, we take a look at some of the most influential altcoins in 2021. This is not just meant to summarize price trends, although accounted for, but the overall impact on the market, as well as possible future repercussions.

It’s also worth noting that it is questionable whether the market would be without the outstanding performance of Bitcoin in terms of price and acceptance. While it may not have appreciated as much as some altcoins, it remains the driving factor in the realm of the Cryptocurrency and the stepping stone for the vast majority of institutions.

However, the decreasing market dominance of Bitcoin (read: its share in relation to the overall market) will decline in 2021. Data from CoinMarketCap shows it has dropped from around 70% to around 40% in 12 months, clearly indicating the tremendous demand for altcoins throughout the year.

Now let’s dive into the top 8 most influential altcoins in 2021.

This is what awaits you in this article

It feels like a lot of what happened in 2021 is because of Ethereum. While the network has been clogged by the astronomical demand for decentralized applications (dApps), Ethereum continues to fuel a movement that is only getting faster.

2021 was important to the network for a number of reasons. The protocol implemented the so-called London HardFork. The nationwide upgrade integrated, among other things, the Ethereum Improvement Proposal (EIP) 1559, which massively changes ETH tokenomics.

The move was intended to lower transaction fees, which had long been a problem for the network. Instead of having to send gas charges to miners in order for the transactions to be included in a block, users are now sending gas charges to the network itself. This is known as Basic charge, while there is also an optional tip that users can pay to miners. the Basic charge is burned and it is set algorithmically – so it can vary from block to block depending on network congestion. At the time of this writing, approximately five months after EIP 1559 was launched, over 56,900 ETH have been burned, currently valued at approximately $ 215 million.

In essence, this has shifted ETH tokenomics by lowering the rate of inflation now that a deflationary mechanism is in place. In fact, at one point, albeit for 24 hours, the rate of burns was higher than the rate of emissions.

This, in conjunction with other factors such as general bullish market conditions, the DeFi-Boom, the mania of non-fungible tokens and many more are just a few of the reasons for ETH’s strong performance against BTC, as can be seen in the graphic below.
ETH/ BTC. TradingView

While many consider Dogecoin to be a joke, 2021 was the year they managed to prove people wrong.

At the time of this writing, DOGE is the 12th largest cryptocurrency with a Market capitalization of over $ 23 billion. It spearheaded one of the hottest trends of the year – the memecoin mania – and is undoubtedly responsible for welcoming many newcomers to the cryptocurrency world. Of course, it can be argued that many of the investors who drove the hype train got burned, but there is no denying that Dogecoin was what every TradFi and crypto investor had in mind for a while.

It legitimized memes to the extent that several online and brick-and-mortar merchants accepted it for payments.

Driven by the richest man in the world, Elon Musk, DOGE has been on every TV show for a long time. Musk even said it was better suited to be used as a currency than Bitcoin, while also making it clear that Tesla will accept it for some of its goods. Recently, the Dogecoin Foundation partnered with Vitalik Buterin to also build community stakes.

All of this has made Dogecoin one of the best performers of the year and at the same time left a lasting mark on the industry.
The 8 Most Influential Altcoins in 2021, Crypto Trading News CryptoPotato Archives

Shiba Inu (SHIB)

It is unreasonable to consider a 2021 altcoin list without including SHIB. We won’t go into detail about SHIB’s developments over the course of the year, but instead focus on the staggering price hike.

And since we don’t want to deal with lots of zeros, we speak in percentages. In the past 12 months alone, the price of SHIB has increased by, wait a minute, 44,234,210%. This means that an investment of just $ 1 would have turned into $ 442,343. An investment of 1 cent (correct – $ 0.01) would have turned into $ 4,423.43.

There are plenty of other cryptocurrencies in the top 100 that have made whopping and overwhelming profits, but nothing comes close. Regardless of what people think of SHIB, the astronomical Giga Chad profits alone justify being on the current list.

Shiba Inu was the most popular cryptocurrency on CoinMarketCap in 2021 and also topped one of the hottest trends of the year.

Solana achieved something special in 2021, both in terms of price development and overall development.

It established itself as the premier Layer-One protocol, albeit with problems of its own, among a community of dedicated and enthusiastic users. It saw an influx of developers moving away from Ethereum in search of a scalability solution as users flooded the network for faster transactions and lower fees.

Data from DeFi Lama shows that the total value of Solana is currently around $ 11.5 billion, which is a huge increase. For comparison, in March of this year it was less than $ 150 million.
The 8 Most Influential Altcoins in 2021, Crypto Trading NewsTVL in Solana. DeFiLama
In terms of price, SOL rose from about $ 1.5 in January to $ 175 at the time of this writing, up over 11,000%. At the beginning of the year it came in at around $ 260 All time high.

Binane Coin (BNB)

BNB was at the forefront of Binance Smart Chain Mania, which we observed earlier this year. As users were looking for Ethereum alternatives and desperately asking for more affordable, faster, and more scalable DeFi primitives, BSC emerged as the first answer.

In February of this year, the network’s unique addresses tripled in less than a week. That growth continued to accelerate and suddenly everyone was obsessed with finding the next big thing on the Binance Smart Chain.

And since BNB is to BSC what ETH is to Ethereum, its value has skyrocketed. BNB has spent a lot of time in 2021 to be the third largest cryptocurrency by total market capitalization, seeing an impressive YTD increase of around 1268%.

Avalanche (AVAX)

Avalanche is another first-level protocol that really took off in 2021. The rise in AVAX price seems to be directly correlated with the growth of its ecosystem.

Circle recently announced that its USDCStablecoin (which is one of the largest stablecoins in terms of market capitalization) went live on Avalahcne to strengthen its native DeFi ecosystem. It seems the narrative is pretty similar to that of Solana and the Binance Smart Chain to Prominence.

In hindsight, the layered-layer metagame seems pretty obvious, and it’s pretty much the same protocols inherent in those layers that tend to work extremely well as well.

Avalanche has attracted tremendous value contained in various protocols running on its ecosystem and has forged massive partnerships throughout the year. Aave was made available on it, OpenOcean was also integrated into the network and so on.

Axie Infinity’s AXS token is one of those strong performers that stunned everyone in 2021. While it didn’t bring in the same profits as SHIB, it is sure to be one of the contenders. The cryptocurrency is up a little less than 18,000% in 2021, but that’s not the most impressive thing.

AXS established itself as the first play-to-earn game, paving the way for a trend that would later become one of the hottest in the business.

Axie Infinity is a game where users can buy characters called Axies, breed them, train them, improve their skills and finally face the world of adventure or play against other players. By doing this and participating in various in-game tasks, they earn cryptocurrency, which further drives the P2E model.

Luna (LUNA)

LUNA is the Terra ecosystem’s cryptocurrency, and it’s one that has been absolutely raging lately.

At the time of this writing, the total value locked in Terra is nearly $ 19 billion. For comparison: Last December it was around $ 3 million. Interestingly, it is the second largest network after Ethereum after this metric, surpassing BSC, Avalanche, and Solana.
The 8 Most Influential Altcoins in 2021, Crypto Trading NewsTVL in Terra. DeFiLama
A big part of Luna’s growth was also the general rollout of the Terra USD – a decentralized algorithmic stablecoin based on the Blockchain based by Terra. It currently bolsters a market cap of $ 10 billion, making it the largest algorithm stablecoin on the market as well as the third largest stablecoin after USDT and USDC.

All of this has also increased the price of LUNA as the Cryptocurrency is up 13,300% in the past 12 months.

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Source: Crypto News Deutsch

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