2020 and 2021 (so far) have been a rollercoaster for the financial markets, and the crypto markets are no exception. While Bitcoin may take the spotlight for hitting its all-time high, the altcoins‘ projections remain alluring too. Of course, many retail and institutional traders and investors naturally flock to the crypto sector. But as Bitcoin, Ether, and other altcoins are chasing new all-time highs, many newcomers may want to know what the best altcoins are and what lies ahead.
According to experts and crypto analysts, some of the best altcoins include Cardano, Chainlink, Ether and Uniswap. But, there are also other alternative coins worth looking into. Ultimately, it is worth investing in altcoins to diversify a trader’s portfolio.
So, here’s what you need to get started. We’ll be highlighting the prospects of altcoins and how you can successfully buy, store, and trade altcoins.
What Are Altcoins?
Altcoins are basically any cryptocurrency that isn’t Bitcoin. All cryptocurrencies, including stablecoins, utility tokens, and security tokens, other than Bitcoin, are altcoins. The rise of altcoins is highlighting the limitations Bitcoin is facing and, in the end, may ultimately eradicate the monopolization of Bitcoin.
While of course, Bitcoin remains hugely popular, with around 60% of the total The market capitalization (or market cap) of a cryptocurrency is a measurement of its market value. In other words, it... of all cryptocurrencies, altcoins are growing in popularity too. Among those, Ethereum’s Ether has around 12% of the market cap (in April 2021).
There are actually thousands of altcoins, some of which are better known than others and many that hold great potential. One of the main drivers of value behind these altcoins is the project, platform, or blockchain it is connected to. That’s because it gives validity and utility to the real-world.
Many altcoins or tokens are built on protocols that are different from the Bitcoin blockchain. Below we’ll be discussing some of the most successful and productive altcoins.
The Retrospective: Altcoins Growth and Projections
The first rally of altcoins was in 2017, that along with the popularization of the Initial Coin Offering (ICO) model, saw many startups issue their ERC-20 tokens of coins based on different standards blockchains.
There are over 5,000 altcoins in existence. Since the exponential growth of the crypto sector in recent years, some have produced up to over 20,000% investment returns.
Recently, altcoins (as well as Bitcoin) have seen a boost from a broad pool of investors. Many traditional banking and investment institutions have started acquiring extensive holdings in the billions in altcoins. Grayscale Investments, one of the world’s largest digital currency management firms, has crypto holdings worth nearly $45 billion, of which around $7 billion are in altcoins.
Analysis of past performance, current growth trajectory, and future projections reveal that the altcoin market cap is in full-blown breakout mode.
The Largest Altcoins by Market Cap
The total market capitalization of altcoins, excluding Bitcoin, is at a all-time high according to CoinMarketCap. Prior to 2021, the previous peak was recorded at $142 billion on June 26, 2019, but at the time of writing (April 2021), it has rocketed past a mammoth $750 billion. For many analysts, this is a strong indicator that the alt season is about to see a breakout – if it isn’t already.
By taking a closer look at the altcoins’ projections in general, some altcoins perform better than others. And are thus ranked according to their market cap (how much the coins in circulation are worth in non-virtual money, e.g., dollars).
The top 11 largest altcoins by market cap, in alphabetical order, (in April 2021) are:
- Binance Coin (BNB)
- Cardano (ADA)
- Chainlink (LINK)
- Ether (ETH)
- Filecoin (FIL)
- Litecoin (LTC)
- Polkadot (DOT)
- Tether (USDT)
- Theta (THETA)
- Uniswap (UNI)
- XRP (XRP)
These leading altcoins are all considered competitors to Bitcoin in one way or another as they have solid technological backing of separate blockchains or platforms. Besides, it can potentially turn into highly lucrative investments.
The Best Altcoins to Trade Now
While Bitcoin has managed to maintain its leadership position in the crypto space, several altcoins can demonstrate phenomenal growth and produce considerable returns.
1. Binance Coin (BNB)
What Is Revolving Around Binance Coin?
Binance Coin (BNB) is a ERC-20 token that can be used to pay for fees on the Binance exchange and to exchange for other cryptocurrencies.
Binance Coin Price Analysis
From its launch to late 2020, the price of Binance Coin stayed at relatively modest levels. At the beginning of 2021, it was around the $30 mark. However, with the onset of the bull market, its price rocketed through the early stages of 2021, reaching an all-time high of $342 in February 2021. At the time of writing, it had an ROI of a whopping 275557.74%.
Binance Coin Future Projects
With the rise of cryptocurrency exchanges, BNB is set to be used more and more in the coming years. It is being accepted by an increasing amount of merchants, and this is set to increase even more in the next few years.
Binance Coin Price Predictions
2. Cardano (ADA)
What Is Revolving Around Cardano?
Cardano is another DApps-building platform with its native currency— ADA. It focuses on solving three of the most pressing issues faced by 1st and 2nd generation blockchain projects— scalability, interoperability, and sustainability.
Cardano Price Analysis
Cardano is a relatively new altcoin, but it has managed to grow its market capitalization to $38 billion. It is popular among investors and developers because of its highly robust blockchain that offers advantages over Ethereum.
Cardano grew from about $0.020 at its launch in October 2017 to $1.20 in January 2018. However, after that, it fell to relatively low levels again. In late 2020, it was trading at around $0.14. But, like the coin preceding this, its price exploded in early 2021. It hit an all-time high of $1.48 in February 2021.
Cardano Future Projects
Cardano is one of the most prominent blockchains to use a Proof of Stake consensus mechanism successfully. In 2020, Cardano held a Shelley upgrade that aimed to make its blockchain 50 to 100 times more decentralized than other large blockchains. At the time, Hoskinson predicted that this would pave the way for hundreds of assets to run on its network.
Cardano Price Predictions
3. Chainlink (LINK)
What Is Revolving Around Chainlink?
Chainlink is a decentralized oracle network for smart contracts closely tied to Ethereum smart contracts ( a concept that’s growing in popularity.)
Its coin LINK mostly derives its value from the fact that it is unique when compared to other blockchain projects. The business model is solely focused on creating smart contracts (through the use of oracles) for the outside world. Thus, bridging the gap between blockchains and the applications that exist in the real world.
Chainlink Price Analysis
One of the best performing altcoins of 2020 was Chainlink. The crypto LINK’s price exploded from a low of $1.76 to a peak of $30 in less than a year. Despite the rise of Bitcoin has that contributed to its price surge, the escalated demand for decentralized finance (DeFi) in smart contracts may also be the reason for its growth. In the last year, Chainlink’s price has surged over 1200%.
Chainlink Future Projects
Chainlink partners with all types of projects but a lot of the fresh excitement revolves around its oracle’s network. As a result, the crypto Chainlink’s project has aptly positioned itself to serve the ongoing DeFi demand surges.
Most recently, Chainlink also became the oracle provider for major rising blue-chip DeFi plays like Synthetix and Aave.
Chainlink Price Prediction
The growing trend of new addresses joining the network is even more apparent here, hitting an all-time high.
The Chainlink price prediction is highly dependent on the overall crypto market. Overall, it is seen as one of the best altcoins to invest in or trade. The Chainlink crypto will remain bullish if the market sentiments persist. The LINK token is predicted by some analysts to reach or surpass $50 by the end of 2021. However, this is a conservative prediction, as many market predictions point to higher numbers. Longer-term, Wallet Investor predicts it could reach $157 by 2025.
4. Ether (ETH)
What Is Revolving Around Ether?
Ether (ETH) is the most well-known altcoin, second only to Bitcoin in terms of applications, recognition, and value growth. As the second most valuable cryptocurrency after Bitcoin, its market capitalization at the time of writing was close to $245 billion.
While Chainlink is slowly gaining momentum, Ether was the first cryptocurrency to introduce smart contracts. With Ethereum 2.0 on the move for its roll-out, only the future can tell how quickly the Ether price will soar. On top of it, the widely-recognized Ethereum standard for its utility tokens ERC-20 also became the most used by startups looking to launch Initial Coin Offerings (ICOs).
Ether Price Analysis
The price of Ether grew from just $9 in January 2017 to an all-time high of $1,389 in January 2018. When analyzing its growth in terms of percentage, it yields a return of over 17,000%. Like most of the crypto space, however, its price fell off after that, but it started to recover handsomely in 2020. Its value almost doubled in price in the month of November 2020. The Ethereum 2.0 upgrade from the Proof of Work mechanism to Proof-of-Stake will only strengthen the position of Ethereum in the long-term. Ether is currently trading at around $2000, near the all-time high that it reached in early April 2021.
Ether Future Projects
The Ethereum blockchain is currently anticipating the long-planned move from a Proof-of-Work mechanism to the more scalable Proof of Stake with the ETH 2.0 upgrade. With ETH 2.0 phase 0 rolling out, the ETH price may well dip in the short-term, but the future looks bright. Ether possesses a positive impression in the crypto market and provides the basis for further growth.
ETH Price Predictions
The Ethereum blockchain and altcoin’s flexibility, robustness, and utility make Ether attractive to both developers and investors. Ahead of the anticipated Proof-of-Stake upgrade, Ether’s price has been gaining momentum since the beginning of 2020. Many investors and analysts agree that ETH looks bullish right now and believe it can gain ground on Bitcoin’s #1 market cap share. Price projections are generally bullish for the coming years. Coin Price Forecast predicts its price could reach $12,000 by 2025 and $30,000 by 2030.
5. Filecoin (FIL)
What Is Revolving Around Filecoin?
Filecoin (FIL) is an altcoin that has seen massive growth going into 2021. It is the cryptocurrency for a peer-to-peer network built on a blockchain, that allows people to store data in a decentralized way, unlike centralized cloud services. Through blockchain technology, you can even share your unused hard drive space.
Filecoin Price Analysis
The Every blockchain protocol has a mainnet. This is a component of the blockchain where the transactions of a cryptocurre... was finally launched in October 2020, after several delays. After a start price of over $100, it then traded at the $20 – $40 mark for several months. Its price started to rocket in March 2021. On April 1st 2021, its price shot up around 40% in just 24 hours, to reach an all-time high of $212.
Filecoin Future Projects
Some see Filecoin as an important development for the future of data storage. With 93% of data created not stored, there is a huge potential in this area. Brad Burnham, founding partner of Union Square Ventures said:
Only with a decentralized, open data storage network like Filecoin will we fulfill the Internet’s original promise
Filecoin Price Predictions
Price projections look pretty promising for Filecoin. In a promising development, Grayscale announced that they have around $7.8 million under management. Longforecast predicts its could reach nearly $1600 by 2025.
6. Litecoin (LTC)
What Is Revolving Around Litecoin?
Litecoin (LTC) is one of the oldest altcoins but yet still one of the top ones. It was created in 2011 by an ex-Google employee, Charlie Lee. Like Bitcoin, Litecoin is just another peer-to-peer digital asset. Despite the similarities, especially the core code, Litecoin distinguishes itself from the little to near-zero payments worldwide and its fully-decentralized network features. Ultimately, Litecoin aims to overcome Bitcoin’s shortcomings, primarily its slow transaction speed.
Litecoin Price Analysis
Litecoin has been in the market for nearly a decade. In that time, it earned the status of one of the best altcoins with a market capitalization of $14 billion—positioning itself for a long time just slightly behind Ethereum.
During the crypto boom in 2017, Litecoin is among the cryptocurrencies that received tremendous support among traders. In that year, Litecoin’s price grew from $4 in January 2017 to $350 in December 2017. That’s a whopping return of 8,000% within a year. Like many cryptos though, it regressed from this in 2018.
Also, like many cryptos though, it recovered in 2020 and into 2021. At the time of writing, Litecoin was trading at nearly the $200 mark.
Litecoin Future Projects
After several development updates to Litecoin, namely the Segregated Witness (SegWit) protocol upgrade and the Lightning Network, Litecoin has attracted plenty of attention from crypto enthusiasts. However, in 2018, its creator Charlie Lee reportedly told Franklyn Richards, director of Litecoin Foundation, that “no one is interested in working on Litecoin protocol development work.”
LTC Price Predictions
Litecoin has made considerable improvements in Bitcoin’s technology in increasing the speed of transactions. Due to Bitcoin’s scalability challenges, Litecoin attracted more users in 2017, driving its price up to new highs. However, it still remains in Bitcoin’s shadow. Nevertheless, price predictions are fairly bullish. Coinswitch predicts its price could reach $1200 by 2025.
7. Polkadot (DOT)
What Is Revolving Around Polkadot?
Polkadot (DOT) is another cryptocurrency that has seen some crazy growth through late 2020 and early 2021. The Polkadot network aims to improve communication between private and public blockchains, without compromising scalability. Its native coin, DOT, helps to maintain and operate the blockchain on the network.
Polkadot Price Analysis
DOT is a relatively new coin, having been launched in August 2020. Like several other cryptocurrencies on this list, its price remained relatively stable until early 2021, when it saw a big leap. After being around $7.50 at the end of 2020, it had shot up to around $20 by early February. It then hit (at the time of writing) an all-time high of $42 on February 20.
Polkadot Future Projects
Polkadot has numerous projects in the pipeline. One such project is the Edgeware project, that aims to allow smart contract creation within a sustainable ecosystem. Another project is the Acala project, which aims to bring DeFi to the Polkadot ecosystem.
Polkadot Price Predictions
Price predictions for Polkadot are generally positive for the coming years. Longforecast predicts it could reach $84 by 2025. Digital Coin Price predicts it could reach $130 by 2025. Wallet Investor is significantly more bullish, predicting it could reach $400 by 2025.
8. Tether (USDT)
What Is Revolving Around Tether?
Tether (USDT) is a cryptocurrency designed to ensure that each token is represented by its underlying asset in the form of a U.S. dollar. It was released on the Omni, Ethereum, Tron, EOS, Liquid, and Algorand blockchains.
Tether Price Analysis
Between March 2020 and March 2021, the capitalization of the most popular stablecoin Tether (USDT) grew by nearly 1000%. The all-time high price for USDT was $1.21 on May 27, 2017.
Tether Future Projects
On March 14, 2019, the company claimed that tokens are backed not only by U.S. dollars but also by loans issued to related companies of Tether Limited. On July 17, 2019, Tether announced the release of its stablecoin USDT on the Algorand 2.0 blockchain. The changes were implemented on February 10, 2020. The Algorand protocol can increase transaction processing speed and lower fees.
If It Worth Trading USDT?
According to Wallet Investor, USDT will remain around $1.0, but in 5 years it might be around $1.01. Of course, that is what you want from a stablecoin – not drastic price increases. If this correct, it will remain pegged to the price of the US dollar – mission accomplished.
Generally, Tether (USDT) is considered a worthwhile investment, as it can be useful to swap your investments into during times of volatility in the crypto markets. You can do so on Bybit using the Asset Exchange feature.
9. Theta (THETA)
What Is Revolving Around Theta?
In early 2021, Theta (THETA) has come from relative obscurity to nudge into the top 12 altcoins by market capitalization. It bills itself as a “decentralized streaming video protocol” and aims to take on the mights of YouTube and Netflix in the blockchain era, giving more freedom and control to content creators. The THETA token help to secure the network and acts as governance on the blockchain. On the other hand, TFUEL is given out as a reward to users who watch creators’ streams on the network.
Theta Price Analysis
Even as recent as December 2020, its price was still under the $1 mark. But in early 2021, its price saw some dramatic growth, reaching $2 in January, $4 in early March, and an all-time high of $14.87 on March 24. TFUEL has seen even more dramatic growth in early 2021, jumping remarkably in price from $0.02 on New Years Day to an all-time high of $0.56 on March 24. Ahead of the delayed mainnet 3.0 launch, its price has regressed slightly from those highs, but the gains are still hugely significant in just a few short months.
Theta Future Projects
With video streaming projected to grow at a compound annual growth rate (CAGR) of 20.4% from 2020 to 2027, the potential for Theta’s future projects is huge. Partnerships such as with electronic giants Samsung could well become more commonplace as its market capitalization continues to grow in the future.
Theta Price Predictions
Price predictions for Theta are generally bullish. Wallet Investor label Theta an excellent long-term investment and predict it could reach $53 by 2025. Digital Coin Price predicts it could reach $40 by 2023.
10. Uniswap (UNI)
What Is Revolving Around Uniswap?
Uniswap burst onto the crypto scene in September 2020 amidst the DeFi boom. Its token UNI is a governance token on the Uniswap decentralized exchange. It gives holders the rights to vote for any changes to be made on the platform.
Uniswap Price Analysis
After launching in September 2020, its price saw a gradual increase to the end of the year and was at around the $4 mark as 2020 rolled over into 2021. This increase accelerated as 2021 dawned, and its price was $20 by early February. At the time of writing, its all-time high was $36.41, reached on March 23, 2021.
Uniswap Future Projects
With DeFi and decentralized exchanges only likely to become more popular in the coming years, it is also likely that the token will be more widely used in the future. The benefit to users is that no central entity has access to your funds, and this idea will no doubt be popular as DeFi becomes more and more mainstream.
Uniswap Price Predictions
Analysts are generally bullish on the price prospects of the Uniswap token going forward. Coinpriceforecast predicts it could reach $167 by 2025. Elsewhere, Wallet Investor is even more bullish, predicting it could reach $340 by 2025. Digital Coin Price on the other hand is not so bullish but nevertheless predicts an upward trend, predicting it could reach $86 by 2025.
11. XRP (XRP)
What Is Revolving Around XRP?
Ripple (XRP) is one of the most popular altcoins among investors due to its competitive low transfer fees and edging money transfer technology. It was created to resolve Bitcoin’s lack of anonymity and, as a result, enjoys much popularity in the crypto community. At the time of writing, it was the 6th largest cryptocurrency with a $40 billion market capitalization.
XRP Price Analysis
At the time of writing, it was trading around $0.88. It had recovered from the big dip it saw in late 2020, when news of a potential from lawsuit from SEC broke. At this time, it plunged to around the $0.20 mark for a time.
Although there is some price movement during the market volatility, XRP remains bullish. With the recent break out from its resistance level, XRP is generally showing some good signs.
Ripple Future Projects
Ripple’s primary goal has always been creating a payment system used by banks to facilitate the transfer of funds in domestic and international markets.
In August 2020, India’s largest bank, HDFC Bank Limited (HDB), had joined RippleNet. As in November, after years of speculation and rumors, Ripple confirmed its cooperation with the Bank of America (BAC) as the U.S. second-largest bank had also become one of RippleNet’s clients.
XRP Price Predictions
Ripple’s value is strongly correlated to Bitcoin. That means, if Bitcoin’s bullish momentum continues towards the end of the year, we could see XRP increasing its value to over $1.00. Further afield, projections are a little mixed, but generally bullish. Wallet Investor‘s predictions are quite modest, predicting it could reach $0.74 by 2025. However, on the other hand, Crypto-Rating predicts it could reach $24 by 2025.
How to Choose An Altcoin to Trade in 2021?
While few altcoins can match Bitcoin’s growth in value and stability due to the high interest towards the father of all cryptocurrencies, they can certainly be your introduction to the crypto industry, in the same way that buying shares in up-and-coming companies are a gentle introduction to the securities market.
Altcoins are generally influenced positively by a rally in the price of the leading cryptocurrencies – BTC and Ether. But they are also driven by the success of the developments of their own blockchains, services, and products.
How to Trade Altcoins?
Trading altcoins takes place on specialized crypto exchanges. Not all exchanges support all altcoins and most crypto exchanges only support a limited list of altcoins with the largest market cap. For some more specialized altcoins, you will need to find an exchange that specifically supports them.
Another crucial component of trading altcoins is opening or registering a digital wallet. This wallet allows you to store and trade your cryptocurrencies. Depending on your preferences, you may choose to get a Mobile, Hardware, or Software wallets.
Where to Store Altcoins?
The storage of your altcoins is a question of security. Many traders prefer to store their altcoins on the exchanges where they trade them to react quickly to price movements. However, some web-based wallets are also vulnerable to malicious attacks, and traders may risk having their altcoins stolen.
Alternatively, you can take your altcoins offline and store them in ‘cold’ wallets or hardware wallets. These are USB devices with a cryptographic key that lets you securely access, store, and transfer your cryptocurrencies. For more on the advantages and disadvantages of storing your crypto online or offline, read our article on hot vs cold wallets.
What Are Other Altcoins Worth Taking A Look?
Many additional altcoins are also showing healthy jumps in value. Some that offer good opportunities for investors include Tezos, Stellar, Nano, and Basic Attention Token (BAT), to name a few. Generally, altcoins are essential to diversify a trader’s portfolio, as it acts as a backup to balance off the profits and losses.
In 2020, we saw many altcoins retain their bullish momentum, while 2021 may be the year that many altcoins hit the big time. As investors begin to understand altcoins through their real-world use cases, you can be sure that their implementation will rise with their currencies and tokens’ price.
So, with the new found knowledge in crypto, why not sign up to Bybit?