19.04.2024

Which sectors of the crypto market are the most promising for investments in 2021?

All novice cryptocurrency investors are concerned about one question: «Where to invest in order to earn fast and a lot.» Even experienced cryptocurrency experts and traders cannot give an unambiguous answer to it, but it is quite possible to set the investment vector.

At this week’s Synopsis 2021 conference, Alena Afanasyeva, CEO of the cryptocurrency publication BeInCrypto, shared the main trends in crypto investments that will help you choose the right currency for trading or passive earnings.

By far the best investment asset is the so-called star coins, which everyone knows and will definitely buy as digital assets are widely adopted in society. We are talking about Bitcoin and the Ethereum token, which reached record prices at the beginning of the year.

Crypto market pop stars

Bitcoin was able to cross the $ 58,000 mark for the first time in its history, and Ethereum crossed the $ 2,000 mark. Almost immediately after the rise of cryptocurrencies, companies operating in the digital asset segment posted record profits. Thus, the market value of the Coinbase cryptocurrency exchange reached $ 77 billion, and Tesla, which invested $ 1.5 billion in bitcoin, earned $ 1 billion in a month due to the increase in the price of the cryptocurrency.

Ethereum killers

Experts have repeatedly called the DOT and ADA tokens Ethereum killers, but in fact they could not fully replace Ethereum. The main advantages of the Polkadot and Cardano blockchains are the low cost of gas and high transaction speed.

The overloaded Ethereum blockchain simply cannot cope with user activity, which periodically increases the transaction fee on the network. At the beginning of this week, the price per transaction in the Ethereum network on some exchanges exceeded $ 50. In these conditions, alternative projects are of investment interest.

Gas cost in the Ethereum network

Ecosystem tokens-DEX

The decentralized finance market is developing rapidly in 2020, despite a number of pessimistic forecasts by experts. In early February, the amount of blocked funds in DeFi projects set a new record at around $ 32 billion.

This year, the popularity of decentralized ecosystems will only increase due to the ever-growing demand for marketplace services that constantly offer users new services and functions.

The most profitable projects in terms of investment are BADGER, UNI, DODO. The CEO of one of the most promising DeFi projects Aave Stani Kulechov said that the decentralized finance market will set a new price record in 2021.

Crypto exchange tokens

The next class of crypto assets that will definitely interest investors is exchange tokens. The massive adoption of cryptocurrencies and the increased activity of traders and users lead to the fact that exchange tokens of the largest cryptocurrency exchanges, such as Binance, Huobi and others, are constantly growing in value.

Most recently, the leading exchange tokens have increased in price by 60-100% and this is far from the limit. As the popularity of cryptocurrency grows, the value of internal payment units of exchanges will also increase.

BNB token price dynamics

Service Provider Tokens

We recommend that you pay attention to the tokens of provider projects or helper projects, which create a convenient user experience. These include LINK, OCEAN, FLOW, QNT tokens. These cryptocurrencies have real potential for rapid and significant growth as the digital asset market develops.

Also, novice and experienced investors should take a closer look at the non-fungible token (NFT) market, which is growing at an incredible rate today.

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