While it’s possible to generate exponential returns by investing in cryptocurrencies, there is also a chance for you to lose a significant portion of your capital. Cryptocurrency is an asset class that is risky but has the potential to be extremely profitable as well. In case you are optimistic about the growing demand for digital currencies, you should invest in this highly disruptive space.
Here we take a look at five top-performing cryptocurrencies in 2021.
The first cryptocurrency on my list is Gala (CRYPTO:GALA). Valued at a market cap of US$3.26 billion, the GALA token has gained 45,600% in 2021, according to data from CoinMarketCap.
Launched in 2019, Gala Games has over one million monthly active users. The platform has sold over 26,000 NFTs or non-fungible tokens, and the most expensive NFT transaction stood at US$3 million.
Gala Games now aims to create a portfolio of blockchain games allowing you to own the asset you win while playing the game. The assets won are verifiable on the blockchain and can be traded with other players.
The Sandbox (CRYPTO:SAND) is the 31st largest cryptocurrency in the world valued at a market cap of US$5.5 billion. The SAND token is up 16,200% in 2021, creating massive investor wealth in the process.
Built on the Ethereum blockchain, SAND is a token that is used in virtual gaming or the metaverse space. Here, users can buy and sell properties as well as create their own assets that can later be sold.
Celebrities such as Snoop Dog are now part of The Sandbox metaverse and an increase in the number of players should positively impact the SAND token price.
Another cryptocurrency operating in the metaverse space is Axie Infinity (CRYPTO:AXS). The AXS token has surged 16,000% in 2021 and is valued at a market cap of US$5.81 billion.
A primary reason for the recent surge in the price of the gaming cryptocurrency is the airdrop of the AXS token. An airdrop is a process where tokens are given away for free to early adopters of the cryptocurrency which positively impacts demand.
In October, the development team of Axie Infinity disclosed plans to launch a 2.0 version of the game to include game play improvements and a free-to-play version as well.
Polygon (CRYPTO:MATIC) is the 14th largest cryptocurrency in the world, valued at a market cap of US$18.17 billion. The MATIC token has gained 14,100% this year and should be on the radar of long-term investors.
Polygon is a platform that can be used for Ethereum (CRYPTO:ETH) scaling. Further, Polygon SDK which is a flexible framework allows users to build a wide range of applications.
The Polygon blockchain can convert Ethereum into a multi-chain system also called the internet of blockchains. On a single-side chain, the Polygon network can execute up to 65,000 transactions per second.
The final cryptocurrency on my list is Terra (CRYPTO:LUNA) which is valued at a market cap of US$31.3 billion. The LUNA token is priced at $86.39 and has gained 13,200% this year, making it the 9th largest cryptocurrency, at the time of writing.
Terra looks to combine the price stability of fiat currencies with the decentralized nature of Bitcoin (CRYPTO:BTC) to offer fast and low-cost payments. Its blockchain protocol is pegged to stablecoins allowing Terra to create a robust global payments system.
An investment of $100 in each of these cryptocurrencies at the start of 2021 would be worth approximately $104,000 today.