Altcoin predictions: Seven cryptocurrencies to watch right now
What are the biggest altcoin predictions for 2021? Here, we look at seven cryptocurrencies that have been piquing a lot of interest
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Altcoin predictions are in high demand right now, especially as avid investors begin to seek gains away from major cryptocurrencies such as Bitcoin. Indeed, there’s been no shortage of bullish altcoin price predictions and ‘altseason’ (altcoin season, trending on Twitter as #altseason) proclamations over the past year.
But which coins have outperformed over 2021, and which altcoins have the most potential to outperform the rest of the market in the weeks and months to come? What coins make up our altcoin price prediction for 2021 and beyond? Let’s take a look here.
1. Dogecoin
Despite the fact DOGE’s performance may have faded during the back half of this year – a move linked to excesses in the crypto market being flushed out – there’s no denying that the joke coin has cemented its reputation as being up there in the top altcoin predictions for 2021.
From a starting point of $0.0047 – barely half of one cent – we saw DOGE race to $0.7376 by 8 May – a stunning surge of 15,593% in under five months. Prices have fallen back to $0.24 as of mid-October, but this still marks year-to-date gains of 5,006%.
One trend we’ve been seeing among the top-performing altcoins of 2021 is a shift in attention to small-cap coins that serve as spin-offs of DOGE. There are loads of examples, ranging from SHIB (Shiba Inu – named for the breed of the dog featured in the meme) to Floki Inu (FLOKI).
This latter coin (FLOKI) was named in homage to Elon Musk’s puppy, and witnessed dramatic gains in price when the Tesla CEO tweeted a photo of his new pet.
The likes of SHIB and FLOKI probably won’t be one of the big altcoin predictions, but that doesn’t mean they can’t witness some explosive movements from their very low price point. Just bear in mind that such assets can suffer violent pullbacks in a matter of minutes.
2. Cardano
Ethereum sure is popular, but other members of the most promising altcoins in 2021 have been described as ‘Ethereum killers’.
Step forward Cardano (ADA) – an eco-friendly cryptocurrency that has used a proof-of-stake blockchain from the start, giving it a crucial headstart on Ethereum as the painstaking transition to this algorithm continues. This is definitely on our list of best altcoin predictions.
ADA started 2021 at a price of just $0.18. Over the past 10 months, its value has risen by 1,083%, hitting $2.13 as of 24 October. Few would have predicted that Cardano would now be the world’s third-biggest cryptocurrency by market cap – unseating the likes of Tether (USDT), Binance Coin (BNB) and Ripple (XRP) as a result.
3. Solana
While analysts' altcoin price predictions can vary, Solana (SOL) is definitely one to watch. This is another cryptocurrency that has seen its token appreciate handsomely so far in 2021. From a starting point of $1.61, it later raced to an all-time high of $214.96 – a breathtaking gain of 13,251%.
Then SOL had a tricky September and prices fell when the crypto markets suffered two dramatic crashes – first on the day El Salvador embraced Bitcoin as legal tender, and second after concerns over Evergrande’s debt crisis in China spooked the global economy.
But what didn’t help matters was Solana’s mainnet suffering a 17-hour outage on 14 September. Given this project touts itself as the world’s fastest blockchain, there might have been a degree of embarrassment when it was knocked offline by a peak in demand that culminated at 400,000 transactions per second.
This would have undoubtedly caused some reputational damage, meaning Solana dusting itself off for any prospect of the bull run continuing. At the time of writing on 24 October, the SOL price stood at $190.94.
4. VeChain
VeChain (VET) is now using blockchain technology to different ends. As well as offering a mechanism to verify the authenticity of luxury goods, it also allows products to be tracked along the supply chain in an immutable way – something that’s especially useful when it comes to food safety.
VeChain’s partners include the likes of Walmart China, BMW and Moët Hennessy Louis Vuitton, and news of new collaborations has been known to accelerate the value of the project's token. VET hit an all-time high in April after a collaboration was announced with Salesforce, for instance.
5. Avalanche
Cut from the same cloth as Solana, Avalanche is a blockchain that allows for the creation of decentralised apps (dApps) that use the same programming language as Ethereum. It claims it can comfortably process thousands of transactions a second, something that will be music to the ears of decentralised finance (DeFi) and non-fungible token (NFT) developers exasperated by high fees and congestion.
The AVAX token has surged by 2,000% year-to-date, and currently stands at $65.69.
6. Tezos
It’s worth keeping an eye on the cryptocurrency projects that have been dubbed ‘Ethereum killers’. Cardano and Polkadot are especially good candidates here as both have experienced strong momentum so far this year, rapidly accelerating up the rankings of the biggest cryptocurrencies by market cap.
Another to watch is Tezos (XTZ). Late last year, the Tezos project underwent an ambitious upgrade that cut smart contract fees by a whopping 75%. Its intent was clear: to attract DeFi developers who are fed up with spiralling transactions gas fees on Ethereum.
7. Aave
Speaking of decentralised finance, let’s finish off with Aave (AAVE). The DeFi protocol’s token of the same name has year-to-date gains of 239% – however, the current price of $311.33 (on 24 October) is nearly half the record high of $666.86.
Could this token be a contender if DeFi enjoys a renaissance as 2021 draws to a close? Watch this space.
And finally…
Of course, past performance doesn’t indicate what’s going to happen in the future – and now more than ever, it’s vital to perform your own research.
It’s also important to recognise the hype that comes from social media – you must take any bold claims about young projects with a healthy pinch of salt.
Always do your own research before buying, and never invest more than you can afford.
FAQs
Are altcoins a good investment?
An altcoin is basically an ‘alternative coin’ to the market-dominating Bitcoin. Altcoins currently make up approximately 56% of the total cryptocurrency market, according to CoinMarketCap.
Where to buy altcoins?
You can buy, sell and trade altcoins and tokenised assets on cryptocurrency exchanges such as Currency.com, which is also a fully regulated platform.
