Shiba Inu and the Rest: Top 8 Influential Altcoins in 2021

It’s been a year, and there have been so many changes in cryptocurrency that it’s difficult to comprehend how it all happened in just 12 months.

This article will examine some of the most important altcoins in 2021. Although price performance is important, this article does not focus on its impact on the market. It also considers future potential implications.

It is also worth noting that the market might not have developed the way it did without Bitcoin’s phenomenal performance in terms both of price and adoption. Although it may not have seen a significant increase in value, it is still the main driving force within the cryptocurrency industry and the stepping stone to many institutions.

But, Bitcoin’s market dominance (or its share relative to the whole market) is on the decline since 2021. CoinMarketCap data shows that it fell from around 70% to 40% over 12 months. This clearly indicates the high demand for altcoins all year.

Let’s now look at the top 8 most important altcoins for 2021.

Ethereum (ETH).

It seems like Ethereum was responsible for a lot of the events in 2021. Although the network was clogged by an astronomical demand of decentralized apps (dApps), Ethereum continues its momentum and is gaining more speed.

The network was very proud of 2021 for many reasons. In August, the protocol introduced the London hard fork. The statewide upgrade included the Ethereum Improvement Proposal 1559. This radically changed ETH’s tokenomics.

This was done to lower transaction fees that had been a problem for the network for a long time. Users no longer have to pay gas fees to miners to include transactions in blocks. Instead, they can send gas fees directly to the network. This is called basefee. Users can also pay optional tips to miners. Basefee is burned and set algorithmically. It can change block by block according to network congestion. At the time this writing, five months after EIP1559 was implemented, there were approximately 56,900 Ethereum burned. This amount is currently worth around $215 million.

This basically changed ETH’s tokenomics, reducing inflation rate since there is now a deflationary mechanism. The burning rate was actually higher than the emission rate at one point in time, even though it was only for 24 hours.

This, along with other factors like bullish market conditions and DeFi booming, nonfungible token mania, etc., is just a few of the reasons ETH has performed well against BTC. See the chart below.

ETH/BTC. Source: TradingView

Dogecoin (DOGE).

Dogecoin is often considered a joke by many, but 2021 was the year it proved people wrong.

DOGE, which has a market cap of more than $23 billion at the time this article was written, is currently the 12th largest cryptocurrency. It is responsible for many newcomers to the cryptocurrency world, and has been at forefront of one the most popular trends of the year, the memecoinmania. While it is possible to argue that many of the hype-train investors got burned, it is clear that Dogecoin was once the main focus of every TradFi investor and crypto investor.

It was accepted by multiple brick-and-mortar and online merchants as payment.

DOGE, heavily propelled by Elon Musk, the world’s wealthiest man, was on almost every TV program for a while. Musk said it was better than Bitcoin for use as a currency, while also stating that Tesla will accept it to purchase some of its merchandise. Recently, Vitalik Buterin and the Dogecoin Foundation teamed up to create community staking.

This made Dogecoin one the most successful companies of the year, while also making a lasting impression on the industry.

Source: CryptoPotato archives

Shiba Inu (SHIB)

It is absurd to think of any altcoin list for 2021 without SHIB. We won’t get into the details of SHIB’s year-end developments, but we will instead focus on the price rise that has been jaw-dropping.

We don’t want to deal with many zeros so let’s just talk percentages. The price of SHIB has increased by 44,234,210% in the last 12 months. An investment of $1 would have produced $442,343. A $1 investment would have been worth $442,343.

While there are many other cryptocurrencies that have produced mind-numbingly high gains, none of them compare to SHIB. SHIB’s astronomic giga-chad gains are enough to justify its inclusion on the current list, regardless of what people think.

Shiba Inu was the most favored cryptocurrency on CoinMarketCap 2021, and was also the leader of one of the hottest trends for the year.

Solana (SOL)

Solana was a remarkable company in 2021, both in terms of overall development and price performance.

It was a top layer one protocol and it has been embraced by a large community of passionate users. In search of scaling solutions, developers began to shift from Ethereum to it. Users flooded the network in search of faster transactions and lower fees.

DeFi Lama data shows that Solana’s total value is now $11.5 billion. This is an incredible increase. It was just $150 million in March 2012.

TVL in Solana. Source: DeFiLlama

SOL’s price rose from $1.5 in January, to $175 at this writing. This is an increase of over 11,000%. It reached an all-time high of $260 earlier this year.

Binane Coin (BNB)

BNB was the leader of the Binance Smart Chain mania we saw earlier in the year. BSC was the answer to users who were looking for Ethereum alternatives.

The unique addresses of the network tripled within a week in February 2012. The growth continued and everyone became obsessed with finding the next big thing in the Binance Smart Chain.

BNB is to BSC exactly what ETH and Ethereum are to each other, so its value soared. BNB, which is the third-largest cryptocurrency in terms of total market capitalization, has spent a lot time in 2021 and has seen an impressive YTD growth of around 1268%.

valanche (AVAX)

Another layer one protocol, Avalanche, really took off in 2021. The growth of AVAX seems to have been directly related to the price rise.

Circle recently announced that the USDC stablecoin, which is one of the most valuable stablecoins in terms of market capital, went live on Avalahcne to help empower its native DeFi ecosystem. The story is very similar to that which brought Solana and Binance Smart Chain to prominence.

The metagame of layer one is now quite apparent in hindsight. It’s almost exactly the same protocols that are native to these layers that perform exceptionally well.

Avalanche was able to attract tremendous value in the various protocols that it runs and also tapped into massive partnerships throughout the year. Aave was deployed to it, OpenOcean integrated on the network, etc.

xie Infinity, AXS

Axie Infinity’s AXS token was one of the strong performers that baffled everyone during 2021. Although it didn’t achieve the same gains as SHIB it is still a contender. Although the cryptocurrency’s growth is slightly lower than 18,000% by 2021, that’s not the most remarkable.

AXS was the first game that allowed you to play for money and set the stage for what would later become a booming industry trend.

Axie Infinity allows users to purchase Axies and train them. They can earn cryptocurrency by doing this and participating in different in-game tasks. This further supports the P2E model.

Luna (LUNA)

LUNA, the Terra ecosystem’s cryptocurrency, is currently raging.

Terra’s total value is nearly $19 billion as of this writing. It was only $3 million in December last year. It has become the second largest network in terms of this metric, surpassing Solana, Avalanche and BSC.

TVL in Terra. Source: DeFiLlama

Luna’s growth is also due to the widespread adoption of Terra USD, a decentralized algorithmic stabilizecoin that is based on Terra’s blockchain. It currently has a market capital of $10 billion and is the largest algorithm stablecoin on market. This makes it the third-biggest stablecoin, after USDT or USDC.

All this has pushed LUNA’s value up by 13,300% over the past twelve months.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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