We have seen some cryptocurrencies drop toward the end of the year. However, those declines were not enough to wipe out large returns in most cases. And even with some pullbacks, a few impressive performers are likely to continue winning. Here are three cryptos that delivered fivefold gains or more this year and are still worth investing in now.
Solana (CRYPTO:SOL) has produced a monster increase so far this year. The crypto is up almost 124 times — and that is after declining 30% from its peak over the last few weeks.
The creators of Solana claim that it is “the fastest blockchain on earth.” There is no question that Solana is very fast. It can process about 65,000 transactions each second. But that is a theoretical number. In reality, Solana normally handles close to 3,000 transactions each second — which is still a lot faster than other leading blockchains.
Solana also bills itself as “the quickest growing ecosystem in cryptocurrency.” This ecosystem currently has more than 400 projects.
These advantages, plus a super-low transaction cost, might enable Solana to add more momentum next year. It is already the fifth largest cryptocurrency based on market capitalization. With Solana now getting the attention of institutional traders and hedge funds, this crypto could just be getting started.
With just a few days left in 2021, Avalanche has delivered a return of over 39 times. In the process, the digital coin has catapulted into the number 10 spot for crypto based on market capitalization.
How has Avalanche achieved so much success? The credit goes to its underlying blockchain tech. Avalanche features three integrated blockchains that have the ability to process over 4,500 transactions each second. It also has an extremely-fast time to finality of less than two seconds.
Because of these advantages, more developers have been attracted to the Avalanche platform. Its ecosystem currently includes about 160 projects. Accounting and consulting company Deloitte will be on this list soon, with plans to create a disaster recovery platform on the Avalanche blockchain.
Can buying Avalanche make you a fortune next year? I think it is quite possible. If more developers decide to jump aboard the bandwagon, the value of the AVAX native coin will continue moving higher.
Ethereum (CRYPTO:ETH) has not produced the massive returns that Avalanche and Solana have this year. However, I really doubt that any traders are complaining about the crypto’s gain of more than 460%.
What is remarkable about Ethereum’s great performance is that it was created despite several challenges. Some developers have moved to other blockchains because of ETH’s sluggish transaction speed and higher gas fees.
But a large upgrade is on the way for Ethereum. The upgrade will change the blockchain to a proof-of-stake model, significantly raising transaction speeds and reducing transaction costs. The first phase of this upgrade has already been finished. The second phase is scheduled for next year with the third phase slated to begin in 2023.
With the promise of these big upgrades in the near future, ETH should easily maintain its current position as the second-biggest cryptocurrency based on market capitalization. And it will probably gain ground on the Number 1 crypto which is Bitcoin.
Author: Scott Dowdy