The cryptocurrency market remains heavily centered around bitcoin. Thus, if its price rises sharply in 2021, the entire cryptocurrency market will increase. However, not all cryptocurrencies will see their prices go up in the same way. Her the challenge is to try and predict which cryptocurrencies will see price increases during the year. This list will look at 3 cryptos which seem highly likely to have a very fruitful year in 2021.
For starters, let’s be realistic and effective, rather than creative – the main cryptocurrency to watch in 2021 still remains Bitcoin. 2020 was a productive year for Bitcoin, which managed to regain a lot of its positions and may even end up with an new all-time-high record.
The dominance of bitcoin in the cryptocurrency market again exceeded 65% in 2020. Some experts say that technologically obsolete Bitcoin has never been so strong (despite the jump in 2017, when the price reached nearly $ 20,000). Block after block, bitcoin continues to advance and will continue to do so in 2021. If you want to trade cryptocurrencies in 2021, bitcoin still tops the list for the most popular and tradable digital currency.
Ethereum is also a currency, which can be classified in the “heavy-weight” category. Behind the untouchable Bitcoin, Ethereum is the most famous cryptocurrency for the general public. Ethereum is a leader in second-generation Blockchain, offering smart contracts and dApps (decentralized applications). Not many people know this, but Ethereum has more users in its blockchain than Bitcoin. In fact, many of the most capitalized cryptocurrencies rely on Ethereum for work.
Finally, Vitalik Buterin and the Ethereum Development Team began the long work of migrating the currency network from Ethereum to Ethereum 2.0, which should enable the platform to move towards a sustainable technology platform for its future. The transition to Ethereum 2.0 is expected to come in effect from 2021, but will include the transition to Proof-of-Stake instead of the Proof-of-Work mechanism, the deployment of Sharding, and the new eWasm virtual machine. If this switch succeeds, Ethereum will rely on a much more scalable platform that could take the lead over bitcoin in the future.