When it comes to the cryptocurrency market, there’s a myriad of price-determining factors. These factors which are mainly fundamental and technical are contributors to the highly volatile state of the crypto-market.
Regardless, they still present us with significant signals. One of such is the most promising cryptocurrencies and in 2021, keeping up with the best players is an essential investment guide. Although there’s a handful of promising cryptocurrencies in the market, the top three listed below have repeatedly outperformed in previous years and are showing great potential for the nearest future.
Bitcoin is one of the best performing cryptocurrencies of 2021, even though we’re just a week into the new year. The cryptocurrency surged nearly 700% from 2020 and has since maintained its spot as a top gainer. The highest ever Bitcoin price is $41,941.56 and was attained 5 hours ago.
Although at press time, Bitcoin trades slightly lower at $39,986, analysts insist that a dip below $20,000 is highly unlikely. According to on-chain price metrics and other indicators, Bitcoin prediction for 2021 is extremely bullish. BTC is predicted to close at $100,000 by the end of the year, a 222% price increase should this come to fruition.
Ethereum (ETH) like Bitcoin, is already on an extremely bullish path. The second most valued cryptocurrency has already broken new levels. Unlike most altcoins, ETH is said to have an “unfair advantage” seeing that the cryptocurrency is built on the same blockchain that carries the highly talked about DeFi tokens. ETH rallied by 300% in 2020, thanks to the DeFi buzz. Ethereum’s network upgrade which promises a cheaper transaction fee and a faster transaction time could send ETH to never-before-seen highs.
Ethereum’s highest price in 2021 is currently $1,280. A 25% upsurge will send Ethereum moving above its $1,433 2017 all-time high. Ethereum upgrade, coupled with increased investor interest is likely to send the cryptocurrency above $2,000 before the end of the year.
The newcomer on the list is not so new as far as a bull rally is concerned. Yearn.Finance’s press time price of $32,292, although a sizeable decline from YFI’s $43,873 record high is still reasonably commendable, for a cryptocurrency that was launched in less than six months. As DeFi’s billion-dollar value continues to rise, so will the $600 million worth of crypto-assets staked on yearn. Fundamentally, DeFi is already well-positioned for a groundbreaking rally.
Other high-performing cryptocurrencies like Chainlink (LINK), Wrapped BTC, Litecoin (LTC) to name a few, are also poised for a massive rally in 2021.