Emerging Cryptocurrencies To Buy In 2021
The world of crypto evolves quickly. The number of cryptocurrencies is rapidly growing. The whole space re-shapes every year, with new emerging cryptocurrencies outpacing those not catching up with the ecosystem’s innovation.
Just compare the top 20 coins by market capitalization 5 years ago and today. The list dramatically changed, reflecting the path Blockchain technology has undertaken.
Only a handful of coins still tops the list. Emerging cryptocurrencies replaced most of those that hat grew their popularity recently. Only seven coins managed to remain in the Top 20. Interestingly, most of the cryptocurrencies on the market in 2015 were attempting to improve Bitcoin’s value proposition. Smart-contracts, stable coins, and DeFi were only vague ideas yet to validate.
Today’s Top 20 snapshot presents a much more diversified ecosystem. No coin tries to question Bitcoin’s pivotal role among cryptocurrencies anymore. On the contrary, most of the emerging cryptocurrencies have a very peculiar and distinctive positioning on the market.
To predict which coin has the potential to climb the list in the coming years, it’s important to identify the strongest trends in the market and then pick the emerging cryptocurrency with the highest potentials among its peers.
Decentralized Exchanges
The idea of a decentralized financial ecosystem is broad and embraces different angles. Investors are storing assets into the system at growing rates. Locked assets grew three times in the last two months and over ten times over the previous six months.
Decentralized Exchanges have been so far likely the most successful use case in DeFi. A DEX’s benefit is that users don’t actually have to open an account with any central entity. As everything is executed with smart contracts, all users can connect to the exchange with a compatible wallet like MetaMask and hold full control of their assets.
Among the emerging cryptocurrencies in this niche, PancakeSwap gained significant adoption. Unlike many popular Defi platforms, Pancake swap is built on the Binance Smart Chain. Giving it a unique value proposition as well as optimizing the user experience due to minimal transaction cost. The number of coins available is limited. However, this can be easily overcome as different projects flock to launch their IDO’s on platforms with low fees. Not to forget that the 100million users that Binance caters to can easily access PancakeSwap from the main website, driving adoption even further.
As the Ethereum Blockchain struggles with network congestion and high transaction fees, it seems clear that users are looking for cheaper alternatives. Pancake swap is poised to cater to several of these Defi users.
Tokenization
The legacy financial markets continue to grow in valuation. However, global accessibility has not been growing at the same pace. Currently, the average investor outside the United States finds it difficult to gain exposure to the US equities market. Regulations, geo-restrictions, minimum investment requirements make investing in the stock market almost impossible, especially in developing countries. MIR aims to solve this.
MIR protocol enables minting synthetic tokens, granting exposure to real-world assets. Everyone can now buy digital assets that track a stock’s price. An internet connection and a digital wallet are all the investors will need to get exposure to Google, Netflix, Amazon, and Tesla stocks’ prices.
Just like any other fungible cryptocurrency, these tokens are fractionable. Meaning that investors don’t have to buy a whole Tesla stock, currently, at around $600. The entry barriers to the stock market have never been lower.
Oracles
There is no doubt that the crypto ecosystem’s remarkable development was mainly due to Oracles’ role. Oracles gave smart-contracts the possibility to expand their use cases to meet the needs of users.
Due to an Oracle, the smart-contract can elaborate any third-party data to process its functions. This allows smart contracts to have access to real-world data. Without oracles, Blockchain could not perform the intricate functions that they do at the moment.
Band is definitely among the most interesting emerging cryptocurrencies. The Band protocol improves smart contract’s access to data outside of a specific blockchain. The role of the oracle is to collect off-chain data and import that information into the smart-contract. In this way, Blockchain can track real-world events and interact with them, bridging the gap between cryptocurrencies and the legacy financial system.
One of the advantages of Band protocol is that it works on different Blockchains, such as Ethereum, Atom, Polkadot, representing limitless potential growth in the future.
Privacy
One of the pillars on which crypto stands is the idea of privacy. Public Blockchains like Bitcoin and Ethereum are anonymous but not private. This model is ideal for transparency since all transactions are directly and freely accessible to anyone.
However, when regulators and companies can manage (and to some extent, they already do!) analytics tools to track the transactions’ paths, users may demand higher protection levels for their data.
Secret Network is a protocol that promises to bring privacy to virtually any cryptocurrency on the market. Using secretToken Contracts, users can now send their coins to a smart contract that then mints a secret version of that coin, adding a secure layer of privacy.
Only the minter of the tokens and the receiver can have full visibility of the transaction. It’s worth noticing that SCRT is not a private coin per-se, but it allows any coin or token to become private.
As crypto adoption increases, more and more users will be looking to remain private, and, therefore, the SCRT token deserves a spot in the list of emerging cryptocurrencies.
Alternative Blockchains
Finally, third-generation blockchain has a portion of market share that they have yet to capture. Since the beginning of its development, the ecosystem started to question who could replace the incumbent role of the Ethereum Blockchain in the long term. Many projects tried to offer their alternatives, but basically, all failed so far.
New protocols have taken a different approach. It has become clear that no one blockchain will rule crypto. Bringing the concept of interoperability and cross chains into the spotlight. This helps projects scale and leverage on each other’s strengths, but it will likely speed up the global development of the ecosystem towards mainstream adoption of crypto.
Polkadot has all it takes in the future to become a global Blockchain network connecting different ecosystems. The goal of Polkadot is to provide cross-chain interoperability, allowing any blockchain to connect with another in a decentralized way using the Polkadot ecosystem. This opens the door for vast possibilities, such as swapping LTC for XRP using smart contracts with no intermediary.
Now it’s the time to pick your favorite emerging cryptocurrency and accumulate it. With tools like Coinrule, you can plan your long-term automated strategy and profit from these disruptive technologies’ growth and adoption.
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DISCLAIMER
I am not an analyst or investment advisor. Everything that I provide here site is purely for guidance, informational and educational purposes. All information contained in my post should be independently verified and confirmed. I can’t be found accountable for any loss or damage whatsoever caused in reliance upon such information. Please be aware of the risks involved with trading cryptocurrencies.
