When the first Bitcoin explosion happened, it left everyone astounded because no one had expected a digital currency to reach such a value. In fact, the sudden skyrocketing of crypto prices became common amongst other cryptocurrencies as well.

Since then, investors and traders are always looking for the next set of cryptocurrencies for their portfolio that could explode.

Since the pandemic’s onset and the global economy’s abrupt halt, cryptocurrencies have boomed and reached astronomical heights. In fact, the trend followed well into 2021, which has changed the industry and the way companies perceive blockchain and cryptocurrencies forever.

As the end of 2021 approaches, we have seen some impeccable performances this year with numerous cryptocurrencies. Bitcoin reached an all-time high this month and peaked to $68,789.63.

However, considering its value is so high, it makes it quite unaffordable for investors who want to gain as much profit from an explosion as possible.

In this article, I will enlist 5 cryptocurrencies besides Bitcoin, which could potentially explode in December 2021. Consider this article an educational piece and before you invest in any cryptocurrency listed here or not, do your own research since the crypto industry is a highly volatile market.

Alright, so let’s jump right into it.

Ethereum

Ethereum is the second biggest cryptocurrency in the world, following Bitcoin, and this year, its prices have seen a surge like never before. At the beginning of the year the value of 1 ETH was staggering around $1000 (approximately), and today, its value is over $4000.

This is price upsurge can be because of multiple reasons. The first one being over the past year, Ethereum has been going through significant upgrades that would make it more scalable while also decreasing the fees on the platform. Ethereum was quite infamous for these two factors, and now that it’s getting closer to solving the problem, Ethereum’s prices are rising.

In fact, the upgrade also meant that more projects were being built on its blockchain, which has also had a major contribution to the price rise.

Binance Coin

Initially, when Binance Coin was launched, it was merely a utility token for the Binance Exchange. People could use it to get discounts and offers on the trading fees, leverage it to earn more profits, etc.

However, since then, it has come a long way and expanded its use cases. As a result, Binance Coin today can be used as payment for numerous purposes that include travel, entertainment, financial tasks such as credit card payments, loans, transfers, etc.

This versatility in the coin’s usage has gotten more people to invest in the coin and hold and use it for their requirements. Unfortunately, due to this, its price has seen a significant hike this year.

The price surge is predicted to continue because of Binance’s policy on keeping the supply of tokens limited. The supply right now is 200 million, and Binance periodically burns its tokens; thus, the value of the remaining tokens increases exponentially.

Algorand

Algorand was built as a way to solve the trilemma of cryptocurrencies. This means it would simultaneously accomplish speed, security, and decentralization, which most cryptocurrencies cannot.

With a proof-of-stake consensus mechanism, Algorand can achieve 1000 transactions per second and try to reach each transaction’s finality within 5 seconds. Like Ethereum, people can build dApps on the Algorand blockchain, and it also provides a protocol for people to transfer their projects from Ethereum to its own chain.

One of the primary reasons behind the incredible price performance of this crypto asset is how it solves the main problems that Ethereum was facing, i.e., high transaction fees, network congestion, and slow transactions. Due to this, people have chosen Algorand over Ethereum, and existing projects have transferred from Ethereum to Algorand.

Furthermore, while central banks are trying to figure out Central Bank Digital Currencies (CBDCs), they use Algorand as the blockchain to host them.

Another important event that contributed to the price rise was El Salvador’s announcement that it would use Algorand as the platform for building its blockchain infrastructure.

Cryptocurrencies

Avalanche

Considering the challenges Ethereum was facing, it has been used as an opportunity by numerous other people to build projects that solve those challenges. Avalanche is one such competitor of Ethereum, providing faster transactions and better throughput. While the cryptocurrency was only launched last year in September, its performance has been quite remarkable.

In fact, it reached its all-time high value only a few days ago. This occurred right after one of the big four accounting firms, Deloitte, announced a partnership with Avalanche. The partnership involves building better disaster management systems for state and local governments across the country.

While the current value of the cryptocurrency is about $119 (approximately), it is set to increase in the coming months and will reach a new all-time high importance within the next few months.

Polygon

Polygon is yet another competitor of Ethereum and is older than Avalanche. Launched in 2017, the project solves the scalability issues of Ethereum. The multi-chained system connects Ethereum compatible blockchains and works on top of Ethereum’s primary blockchain.

The value of the cryptocurrency was about $0.021 and reached an all-time high value in May to about $2.68. Currently, the value is at $1.69 but is expected to rise in the coming months.

The project has outperformed numerous other cryptocurrencies and seen a surge in its pricing. One of the primary reasons for it would be the merger with Hermez that happened back in August. Hermez is a zero-knowledge cryptography-based scaling project, and all its pros would be integrated into the Polygon ecosystem.

Conclusion

These are the top 5 cryptocurrencies that will potentially explode in the coming months. There are numerous other cryptocurrencies as well which deserve mention for their impeccable performance. These include Uniswap, Fantom, and Axie Infinity, among others.

However, as I always say, do your due diligence before investing in any cryptocurrency because the market is highly volatile, and prices surge and dip drastically at the drop of a hat. So invest safely and smartly.

LEAVE A REPLY

Please enter your comment!
Please enter your name here