Bitcoin (quotation BTC) is the grandfather of cryptocurrencies - the first digital currency that continues to dominate all. But in terms of annual percentage growth, many coins surpassed Bitcoin in 2021. According to data from CoinMarketCap, Bitcoin grew by around 60% over the year, while other top cryptocurrencies increased by more than 5.000%.
Here are some of the coins that have seen significant growth and left Bitcoin in the dust in 2021.
1. Gala Games (GALA)
Blockchain gaming is one of the great crypto phenomena of 2021. Axie Infinity (AXS) pioneered play-to-earn gaming - a form of play where players earn crypto in-game rewards that can be exchanged for world money real. It is part of a larger trend that can see users rewarded for online activities such as browsing the web or participating in social networks.
Gala Games increased by over 31.000% over the year. There are several play-to-earn games in development on the Gala platform. These include a survival game called The Walking Dead, and a fantasy RPG called Mirandus. The only playable game at the moment is called Town Star, in which players compete to build the best and most productive city.
2. Earth (MOON)
Terra is a stablecoin-based decentralized finance (DeFi) platform, powered by its LUNA token. Terra stablecoins are pegged to several major currencies, including the US dollar. They form the basis for Terra's payment apps and other DeFi protocols.
Unlike fiat-backed stablecoins like Tether (USDT), Terra doesn't need to hold cash in reserve to back up its tokens. Instead, the prices are maintained by algorithms and supported by LUNA. LUNA's price increased nearly 13.000% in 2021.
A potential cloud on the horizon is that the SEC is investigating the company behind Terra, Terraform Labs. She is concerned about another project called the Mirror Protocol, which creates tokenized versions of shares, prompting the SEC to probe whether the company is selling unregistered securities.
3. Decentraland (MANA)
The Facebook Meta rebrand caused a metaverse token explosion in late 2021. Decentraland is a virtual world where people can do many of the activities they could do in real life - like attending a concert or visiting a gallery. art. You can explore Decentraland for free as a guest, or connect your cryptocurrency wallet to spend money in this online world.
The price of MANA has risen by around 4.000% over the course of the year. Be aware that it is very early for metaverses, and it is not yet clear how this space will develop. Decentralized cryptocurrency-based metaverses will face stiff competition from Facebook and other existing tech companies.
It's still worth the HODL Bitcoin
When you see how well some of the cryptocurrencies above performed in 2021, it is tempting to go all-in on the altcoins in the hope that they will produce similar gains in 2022. But it's also worth noting that Bitcoin has consistently been on an upward trend. since its creation over a decade ago, while many altcoins have fallen. We have seen extreme volatility and some tough years, but overall, Bitcoin has prevailed.
This is a highly speculative and fast moving industry, so today's high flyers can quickly fall out of favor. Our research showed that around 45% of the top 300 cryptocurrencies in early 2021 fell off that list by the end of the year. Also, if there is a market crash, it is the more established coins like Bitcoin and Ethereum that are likely to survive.
Cryptocurrencies are such an unpredictable market that it's worth keeping a portion of your wallet in safer coins. However, if you are comfortable with risk, you can achieve solid returns by putting a portion of your portfolio into altcoins. Just be careful. Use a reputable cryptocurrency exchange and do lots of research - the more research you do, the better you'll be able to make wise choices. Most importantly, don't invest the money you need to achieve other financial goals. No investment opportunity is worth risking with your emergency fund or retirement fund.