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An Insight into Cryptocurrency Happenings in 2021

It is interesting to note that investing in cryptocurrency markets is a new trend among investors in 2021. Today, new cryptocurrencies attract new investors.

The pandemic makes people look for profitable investments to tide over tough times. Quick money is the norm, and people invest in the crypto sphere for its volatile movement and high profits. However, it is a high-risk market.

Cryptocurrency Market Attracts New Investors

With high volatility and large profits from the wild price swings in the crypto market, cryptocurrencies are now gaining attention from new investors. The speculative nature of the crypto tokens captivates the younger generation who are willing to move with the changing technology.

Despite the pandemic and lockdown restriction, the crypto market could reach out to a larger group of investors. Funds see a shift from traditional stock markets and safe-haven investments like gold into cryptocurrency.

The crypto market generates quick wealth to investors, but there are high risks attached to digital asset investments. Crypto assets do not get backing from any central government and are highly volatile and complex. Strict regulations in the crypto market reassure investors about its safe usage. But hacks and thefts continue to threaten the crypto sphere frequently.

Incidents in 2021 in the Crypto Sphere

In 2021, several regulatory measures enforced by authorities were able to safeguard investor money. But hacks and illegal activities jeopardize the security of digital assets.

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In May, crypto prices slumped when China brought a ban on crypto mining, stating that it consumed high energy.

In November 2021, the Squid Game cryptocurrency inspired by the Squid Game drama series on Netflix eroded investments when it traded at $2,860 but crashed to near $0 value the very next day. It was a cryptopanic as investors lost almost 99.9% of their investments on Squid crypto.

El Salvador is the only country to official cryptocurrencies as legal tender. It has brought in investments from many foreign investors into the country.

The crypto prices zoom higher whenever tweets by Tesla CEO Musk stir up the crypto market.

Cryptocurrencies like Bitcoin, Ethereum, set new record highs in 2021. In November, many crypto tokens reached new high values. The traditional share market and the crypto market swept to new high levels in 2021.

Top Cryptocurrencies Performance in 2021

The best cryptocurrencies in 2021 are Bitcoin, Ethereum, Ripple’s XRP, and Litecoin. Dogecoin, Tether (USDT), Shiba Inu, Cardano (ADA), Solana (SOL), Binance Coin (BNB), Polkadot, and US Dollar Coin (USDC). They come under the top cryptocurrency list. Almost all of them hit new high values in 2021.

The total crypto market cap is at $2.33 trillion as of December 2021. The market cap of Bitcoin is at $929.8 billion, and that of Ethereum is at $509 billion.

Bitcoin, the oldest and largest crypto in market capitalization, is $48,750 as of Thursday, December 9, 2021. Bitcoin is also known as digital gold, with a high store of value.

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Bitcoin started 2021 at $30,065 and has been on an uptrend since then. It hit life-high prices at $68,990 in November 2021. Bitcoin has been surging higher, despite the covid cases resurging in 2021 frequently. It saw a rapid surge of 372% in 2021.

Ethereum, the second-largest crypto in market cap is trading at $4,228 on Thursday, December 9, 2021. ETH performed exceptionally well in 2021. In January, it was trading at $1,030. ETH touched life-high prices at $4,864 in November 2021. It was a surge of 129% in 2021.

Ripple’s XRP uses digital technology for a speedy payment service. Investors prefer to trade XRP, as converting digital assets into fiat currencies is easier.  XRP was at $0.006 in 2017 and trades at 0.8697 in December 2021. It started the year at $0.2249 in January 2021.

Polkadot is performing well in blockchain technology. It connects blockchains and integrates them to work together. Polkadot prices have gone higher from $2.93 in 2020 to $38.61 in 2021.

Dogecoin is a meme coin that gained popularity from tweets from famous personalities like Elon Musk, the CEO of Tesla electric car makers. Doge coins, introduced in 2013, continued to strengthen, backed by a big community of followers in the crypto world. Dogecoin prices were at $0.0002 in 2017. In 2021, it zoomed to life-high prices at $ 0.72 in May 2021 but fell swiftly after reaching life highs. Even though the crypto market saw a huge rally in November, Dogecoin did not participate in the rally.

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Crypto coin prices vary across providers. Hence choose the best platform for a consistent price value of the crypto of your choice.

New Crypto Coins in 2021

More than 10,000 different crypto coins have come into circulation in 2021.

Meme coins based on the Shiba Inu dog breed have surged. New cryptocurrency 2021 are the Baby DogeCoin, Flocki Inu, and Shiba Inu, and they receive increasing attention from investors. Sons of Doge, Kaizilla, Arcade Network, and Cryptogram are examples of further new tokens and coins for release in December 2021.

Several games based on Blockchain and NFT projects have come up in 2021. There are thousands of altcoins available in the market with investors across the globe. But it is a volatile market that leads to sharp up and down moves in prices.

 

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