It seems appropriate to take a look at how the top crypto currencies have fared as we prepare to bid farewell to a very eventful 2020. This was the year we were locked down. This was the year many people all over the world had to reinvent themselves, and the internet proved to be a viable venue for business like never before. And just as people become more familiar with this new virtual environment, they also began to accept the concept of crypto currencies.
Back in 2017 during the last crypto bull run, there were a lot of doubters. It wasn’t uncommon to hear respectable financial figures call bitcoin, and all crypto currencies, a hoax. Today you would be hard pressed to find anyone dismissing crypto currencies' status as a real asset class.
The top 10 crypto currencies by Market Capitalization will all close 2020 with some impressive gains over their valuations of a year ago:
Bitcoin (BTC) is up almost 300%.
This is mainly due to the interest that institutional investors (large funds and corporations) have shown in crypto currencies. Bitcoin being the strongest and safest of them has received most of this interest.
Ethereum (ETH) is up over 400%!
There are two main factors that have helped push ETH to these levels. One is the Defi explosion that has been based mainly on the Ethereum network. The other factor is the launch of the Beacon Chain that allowed staking on ETH to begin, and has raised hopes that the transition to Eth2.0 will make Ethereum indispensable for the growth of this sector.
As can be seen in this table from cryptowatch, all the top 10 crypto currencies have shown impressive year over year growth. Even Ripple (XRP) which is currently facing legal issues that may very well end its existence.
What will 2021 bring? Will this bullish trend be reversed? Will the crypto market continue to reach new heights?
We will just have to wait and see.
It must be noted that there is always risk associated with dealing in cryptocurrencies. This is an unregulated market, so care must be exercised to contrast the information provided in this article before you commit any funds. This article is not intended as financial advice.
