The bull market continues in 2021, what are the most noteworthy currencies?
In 2020, the currency circle ushered in a big explosion. Among them, the opening price of Bitcoin in 2020 is 7 194.7 US dollars and the closing price is 29 779.14 US dollars, an increase of 300%. After entering 2021, the price of the currency once rose to 40,000 US dollars. Therefore, the Bitcoin that broke out at the beginning of the year gave the market more expectations. In the rest of 2021, the price of the currency can grow to what point.
In addition to the outbreak of Bitcoin, mainstream currencies have also been shuffled in the bull market. Some of the mainstream currencies are still in their original position, while others are squeezed out of the top ten by rising stars, and naturally, they are no longer in the top ten. A high-quality target will continue to be held in 2021.
In 2020, there are still many stars of hope, including the explosion of the concept of DeFi and the rise of Polkadot. Among these sectors, which currencies are worth our long-term holding in 2021, and which currencies should Remove from our self-selected section.
We will select relatively high-quality currencies from the major sectors of mainstream currencies, DeFi, Polkadot, and platform currencies. You can pay more attention to these currencies in 2021.
Bitcoin is a topic that the development of the currency circle is not destined to bypass, and we are discussing these currencies worthy of attention in 2021 based on the fact that Bitcoin is still in a bull market. Regarding the situation of Bitcoin in 2021, we still proceed from the perspective of the market economic environment and institutional preferences.
From a macro perspective, the Fed will continue to release water in 2021. At least in the first half of our vision, it can maintain a relatively loose economic environment. Normally, under the water economy, gold and Bitcoin are the best choices for investors. In early 2021, we can see that many well-known figures in the circle put Bitcoin above gold, and Bitcoin defeats gold. There is still a long way to go.
However, according to the current situation, it is obviously very difficult for gold to compete for the market share of Bitcoin. After all, Bitcoin is only a child compared to the gold market. And if Bitcoin starts to compete for the share of gold, it does not need to compete completely. Bitcoin currently does not have this ability, but only a part of the original gold share can flow into Bitcoin to promote the continued growth of the Bitcoin bull market. The founder of Grayscale even said that people’s demand for gold will eventually drop by 100%, and the growing market is self-evident.
Regarding institutional preferences, the performance will be more obvious. Needless to say, Grayscale has purchased 170% more BTC in the past two weeks than the BTC dugout in the same period. It is the main buyer of Bitcoin in the current market. Including MicroStrategy’s current holdings of nearly 7 billion U.S. dollars in bonus BTC, Paypal continues to buy every day, and only Paypal buying can cover the daily output of Grayscale.
Visa also announced plans to use cryptocurrency as a new payment method, and more traditional financial institutions are establishing new bitcoin fund trusts, and these trusts need to undergo approval, fundraising and other steps, which also means that it will take a certain amount of time to After the official operation, a new Bitcoin fund may appear in every upcoming day during 2021, so there is no need to worry about the demand.
Another possible “surprise bomb” is Bitcoin EFT. Exchange-traded funds are equivalent to buying and selling the index it tracks and can get the same income as the index. Bitcoin ETF is an ETF that tracks the price of Bitcoin, which is equivalent to holding Bitcoin indirectly, and its income follows the rise and fall of Bitcoin.
If the Bitcoin ETF is successfully listed and traded, then traditional funds and even pension insurance funds can be used for Bitcoin asset matching. Switching to the perspective of investors, investors have purchased a traditional fund, and fund managers can use the money in the fund pool to invest and allocate Bitcoin. This not only attracts more traditional fund funds to enter the market but also enlarges the number of bitcoins. The market attention of the currency.
Now the uncertainty lies in the regulation. It is expected that Bitcoin ETF will continue to apply in 2021, depending on whether the new SEC team can continue the development of Bitcoin.
In recent days, Ethereum has hit a new high and has exceeded US$1,500. The increase in 2020 has reached 467%. In only one month into 2021, the increase still exceeded 100%. The current good is still not out. The future is limitless. The main reasons why Ethereum is still worth holding in 2021 are as follows:
First, the Chicago Mercantile Exchange (CME), the world’s largest derivatives exchange, announced that it will launch Ethereum futures on February 8, 2021, and the new contracts will be settled in cash. Currently, the transaction is awaiting regulatory review and approval by the US Commodity Futures Trading Commission (CFTC).
The launch of Ethereum futures will bring traditional investor funds into the market, and the factors involved in price fluctuations will become more diverse and more complicated, but in essence, the launch of Ethereum futures by CME Group has seen its capabilities. Bringing huge transaction fees, and the demand for Ethereum futures is also confirming its value as an investment.
Second, institutions are increasingly interested in ETH.
Previously, when the Grayscale ETH Trust suspended its holdings of ETH, the price was still stable at a certain level. Instead, news of institutions interested in ETH continued to appear in the market. The ETH stock of individual exchanges was directly sold for liquidity problems. On the second day when Grayscale resumed ETH holdings this week, it exceeded 20,000 ETH holdings, and on the third day, Grayscale increased its holdings to 47,000, which also reflected the market sentiment of the institutions behind Grayscale.
Third, large households began to hoard.
Cryptographic analysis company Santiment stated on its official Twitter: In the past two weeks, the number of whale addresses holding at least 10,000 ETH has increased from 1,171 to 1,220, an increase of 4.2%.
According to Glassnode data, in the past period of time, the total number of ETH addresses has been increasing. The number of addresses with more than 10,000 ETH has increased, while the number of addresses with less than 10,000 ETH has decreased correspondingly, holding 1-100 ETH The number of ETH addresses even plummeted on December 19.
It is not difficult to see that big whales are quietly hoarding ETH, while retail investors are gradually being washed out. Retail investors are mostly out of speculation, and the hoarding of large investors indicates that more giant whales are optimistic about the future development of ETH.
Fourth, ETH 2.0 pledge.
According to CryptoQuant data, in the past few days, the amount of ETH held on exchanges has dropped significantly, and there are 8.17 million ETHs left on exchanges. From May 2020, the number of ETH held on exchanges decreased from a peak of 14.11 million to 8.17 million today, a 42% drop.
The decrease in exchange reserves indicates that ETH is flowing out of the exchange. The outflow of ETH may be hoarded in the wallet or maybe pledged in the ETH 2.0 deposit contract
Fifth, Defi continues to explode.
At present, the total market value of DeFi has exceeded 46 billion U.S. dollars, and the total locked position has reached 41 billion U.S. dollars. The increase in just one month is huge. It is almost an announcement that 2021 will be DeFi, and DeFi will grow. It is bound to bring more positive effects to Ethereum, and it will also promote the rise of ETH price to a certain extent.
LTC still does not have advantages in various aspects such as application. The only advantage lies in an “old”. Sometimes I have to admit that as long as I live a long time, I can still exist in this market after experiencing ups and downs in the middle, and finally, I can rely on qualifications. Deep and existential value.
It is also because of the “deep qualifications” that it is currently welcomed by Grayscale. In 2021, Grayscale LTC Trust’s holdings are among the best. Paypal and Pornhub also use it as a payment method, and their currency price performance is also relatively strong. It will still be available in 2021. As one of your configuration.
UNI is the leader of the current DeFi concept, and it is also the “Bitcoin” of the decentralized exchange sector. Uniswap’s trading volume is basically stable at more than 40% of all decentralized exchanges, and Bitcoin is in all currencies The market value accounted for the same.
To a certain extent, UNI can feedback the existence of the DeFi concept, especially as investors are increasingly dissatisfied with centralized exchanges, the popularity of decentralized exchanges will gradually increase. Some time ago, when the Wall Street “retail investors hold groups and turn over institutions” incident, the performance of traditional centralized trading platforms added firewood to the popularization of decentralized exchanges, and Uniswap is currently the best decentralized with the highest usage rate. Exchange.
Although Uniswap has higher slippage compared to professional market makers, it is already very successful. Also, Uniswap investor Paradigm has top researchers who can provide more support and help for Uniswap v3.
Uniswap has some governance issues. For example, the proposal will be deadlocked, how to play a governance role without the leadership of the team, and other issues still need to be resolved, but over time, these issues will be better improved. The current enemy of Uniswap is For yourself and time, it is only a matter of time before UNI really becomes the Bitcoin in DeFi.
In the past one month of 2021, UNI’s currency price has exceeded 300%, and its market value ranks 12th in the overall currency. The probability of entering the top ten in consecutive days is very high. However, it is still considered by the market that it has not fully demonstrated its value range, so in 2021, more thoughts can be spent on UNI.
As a rising star in the loan mining sector, the value of AAVE can be reflected through a set of data. On October 3, 2020, AAVE adopted a community proposal to officially migrate all the original LEND tokens to the new AAVE token. The initial issue price was US$1.7, and the current price is US$420, an increase of more than 250 times.
AAVE has most of the mechanisms of the old project Compound, but one thing that stands out is the magic weapon that AAVE can stand out from the crowd, that is, flash loans. The appeal of flash loans is that it does not require any collateral, and the only restriction is the use time. The loan can only be considered valid after the loan is used within the same block where the loan was issued and the full amount is paid off.
Even so, it is still welcomed by everyone. The cumulative transaction volume of AAVE’s flash loan has exceeded 1.7 billion US dollars on the 20th. A total of about 1.5 million US dollars in handling fees were incurred, of which 1.08 million US dollars were allocated to platform fund providers and 460,000 US dollars were allocated to the AAVE agreement. In 2021, AAVE is still the most anticipated project in the loan mining sector.
The term “Ethereum’s competitor” is enough to prove Polkadot’s excellence.
Community consensus strength, developer quality, popularity, etc. are second only to Ethereum. It can be said that Polkadot has inherited the position of EOS that year, and is also known as the Ethereum killer. Previously, the domestic EOS community has gradually shifted to the Polkadot community. The market has regarded Polkadot as the “EOS with better luck”. The difference is that one was born in a bear market and the other was born in a bull market.
At present, Polkadot ecology has projects in various fields such as DeFi, privacy, games and wallets. The number has reached 338, and it is still increasing. Among them, 1/3 of the projects are developed based on the Polkadot blockchain framework Substrate. Parallel chain.
Polkadot token DOT also performed very well. The current overall market value ranks fourth, and it only happened within half a year of Polkadot’s birth. Although the current market disputes over it, there are still high expectations. , So you can also pay attention to it in 2021.
07. Platform currency
The platform currency here mainly refers to the three major domestic platform currencies.
Naturally, BNB does not need to say much. Binance ‘s performance in 2020 can be described as a standout among global digital currency exchanges. Both customer volume and transaction volume can dominate. With the launch of Binance Smart Chain, it has attracted a large number of The entry of large DeFi players can be described as a two-pronged approach to centralization and decentralization, and the performance in 2021 is still worth looking forward to.
The HT as the only token coins security platform can well reflect the value of natural currency security platform. The potential of HT lies mainly in HECO. As of February 1st, HECO’s TVL (asset locked on the chain) has exceeded 1.4 billion U.S. dollars, the total number of addresses has exceeded 1.8 million, and the number of transactions has reached 18 million.
HECO’s empowerment of HT is particularly significant. Regardless of whether it is borrowing or DEX, HT can easily reach more than 100% of HECO’s APY, leading other options. HECO is to HT what grey is to Bitcoin. It has greatly increased the application range and market demand for HT in one cycle and has become a super scenario that changes the supply and demand relationship of HT.
Since entering 2021, HT has increased by more than 60%. Although it cannot be compared with UNI, it has already performed very well in traditional platform currencies. Moreover, HT also has the advantage that it is very resistant to falling. 20% of Huobi’s revenue must be burned HT, and 66% of the index’s revenue must be bought for HT repurchase. These two points are important fundamentals for HT currency price support.
Since OKT came out, OKB’s positioning has been vague, and the currency price performance has continued to be affected by OKT. But OKEX CEO JAY has stated that OKB is the only platform currency of OKEx, and all centralized operations of the platform will centre on OKB instead of OKT. OKT is the underlying token of the keychain, and its value support is the development and application of the chain itself.
Recently, OKEX has moved frequently, and a Chinese name has been named Ou Yi, which means that OKEX will have a new start in 2021, and OKB can also look forward to it.