The total value of all cryptocurrencies as of March 2, 2021, was more than $1.4 trillion and the total value of all bitcoins, the most popular digital currency, was pegged at about $910.1billion.
As cryptocurrencies have skyrocketed in value, with so many coins out there, here are my picks of cryptocurrencies with possible growth potential in 2021:
- Bitcoin (BTC): The first successful cryptocurrency continues to lead the pack. Its prices surged to more than $48,000 in March 2021 for a market cap of more than $910 billion – meaning bitcoins accounted for more than 69% of the cryptocurrency market.
- Ethereum (ETH): This newcomer launched in 2015 is more technologically advanced. It is blazingly fast, making a transaction takes just a few seconds. As of March 2, it is the second-largest cryptocurrency in the world with $173.52 billion market capitalization and a market price of $1,514.67. In 2020, this cryptocurrency climbed up to around $600 starting from $125, which is a 380% surge in 12 months.
- XRP RIPPLE: Ripple was created with the aim of facilitating cross-border payment. According to a report by the Official Monetary and Financial Institutions Forum, Ripple could “position itself as an alternative to SWIFT”, solving five major issues: security, speed, traceability, cost, transparency and risk management. In 2020, it expanded to more than 300 providers across 40 countries, including Banco Santander and American Express Morgan and HSBC Holdings.
- Litecoin (LTC): Litecoin, launched in 2011, is often referred to as the “silver to Bitcoin’s gold.” It has a faster block generation rate and hence offers a faster transaction. In January 2021, its market capitalization was $10.1 billion and its market price was $153.88, making it one of the best cryptocurrencies.
By Dr. Pooja Lekhi
Dr. Pooja Lekhi is professor at University Canada West teaching finance courses like Financial Management, Global Finance Institutions-Risk Management Approach. She holds a PhD in management discipline with a specialization in finance and an MBA with a finance specialization. She has more than seven years of in-depth experience in teaching and research. Her research interest lies in analysing asset quality management in the banking sector.