The Bull Market Continues in the Year of the Ox, Currencies to Watch in 2021

In 2020, the currency circle ushered in a big explosion. Among them, the opening price of Bitcoin in 2020 was 7194.7 US dollars, and the closing price was 29779.14 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, how far the price of the currency can grow.

In addition to the explosion of Bitcoin, the mainstream currencies have also undergone a reshuffle in the big bull market. Some of the mainstream currencies still stick to their original positions, while others are squeezed out of the top ten by rising stars, and naturally they are no longer in the market. High-quality targets that will continue to be held in 2021. There are still many stars of hope rising in 2020, including the outbreak of the DeFi concept and the rise of Polkadot. Among these sectors, which currencies are worthy of our continued long-term holding in 2021, and which currencies should Removed from our watchdog.

We will select relatively high-quality currencies for you from the major sectors of mainstream currencies, DeFi, Polkadot, and platform currencies. In 2021, you can pay more attention to these currencies.

1. Bitcoin

Bitcoin is a topic that is destined to be unavoidable in the development of the currency circle, and the currencies we are discussing in 2021 are also 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 point of view, 2021 will still be a year for the Federal Reserve to continue to release water. At least from the first half of the year as far as we can see, it can maintain a relatively loose economic environment. Normally, under the water-release economy, gold and Bitcoin are The best choice for investors, and at the beginning of 2021 we can see that many well-known figures in the circle will place Bitcoin above gold. Bitcoin still has a long way to go to defeat gold, but according to the current situation, gold wants to compete Bitcoin's market share is obviously very difficult. After all, compared to the gold market, Bitcoin is still a child. And if Bitcoin starts to compete for the share of gold, it does not need to compete completely, and Bitcoin does not currently have this ability, but only part of the share that originally belonged to gold can flow into Bitcoin, which can 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 naturally self-evident.

As for institutional preferences, it will be more obvious. Grayscale needless to say, the BTC purchased by Grayscale in the past two weeks is 170% more than the BTC mined in the same period, and it is the main buyer of Bitcoin in the current market. Including that MicroStrategy currently has nearly 7 billion US dollars in bonus BTC positions, and Paypal continues to buy every day. Only Paypal’s buying can cover Grayscale’s daily output. Visa also announced plans to use cryptocurrency as a new payment method. More traditional financial institutions are establishing new Bitcoin fund trusts, and these trusts need to go through steps such as approval and fundraising, which also means that it will take a certain amount of time to officially operate, and every coming day during 2021 , there may be a new bitcoin fund, so there is no need to worry about the demand.

Another possible "surprise bomb" is Bitcoin EFT, exchange-traded funds, which is equivalent to buying and selling the index it tracks, and can obtain basically 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 the 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 match Bitcoin assets. Switching to an investor’s perspective, when an investor buys a traditional fund, the fund manager can use the money in the fund pool to invest and allocate Bitcoin. currency market attention.

The uncertainty now lies in regulation. It is expected that the Bitcoin ETF will continue to apply in 2021, depending on whether the newly appointed SEC team can continue to push the development process of Bitcoin forward.

2. Ethereum

In recent days, Ethereum has hit new highs consecutively. It has already broken through 1,500 US dollars, and the increase in 2020 has reached 467%. In just one month into 2021, the increase still exceeds 100%. The current benefits are still not exhausted. , the future is limitless. There are several main reasons why Ethereum is still worth holding in 2021.

1. The Chicago Mercantile Exchange (CME), the world's largest derivatives exchange, announced that it will launch Ethereum futures on February 8, 2021. The new contract will be settled in cash. ) regulatory review and approval phase.

The launch of Ethereum futures will bring in the funds of traditional investors, and the factors involved in price fluctuations will become more diverse and complicated. It brings huge transaction fees, and the demand for Ethereum futures also confirms its value as an investment.

2. Institutions are increasingly interested in ETH

Previously, when the Grayscale ETH Trust suspended the increase in ETH holdings, the price was still stable at a certain level. On the contrary, news of institutions’ interest in ETH continued to come out in the market. Some exchanges’ ETH stocks were directly sold for liquidity problems. This week, on the second day when Grayscale resumed its ETH increase, it surpassed the 20,000 ETH increase. On the third day, Grayscale’s increase in ETH reached 47,000, which also reflects the market sentiment of the institutions behind Grayscale.

3. Large households start hoarding

Santiment, an encryption analysis company, stated on its official Twitter that in the past two weeks, the number of whale addresses holding at least 10,000 ETH has increased from 1,171 to 1,220 now, an increase of 4.2%.

According to glassnode data, in the past period of time, the total number of ETH addresses has continued to increase, the number of addresses with more than 10k ETHs has increased, while the number of addresses with less than 10k ETHs has decreased accordingly, and the number of addresses with 1-100 ETHs has increased. The number of addresses even plummeted on December 19th.

It is not difficult to see that the big whales are quietly hoarding ETH, while the retail investors are gradually being washed out. The exit of retail investors is mostly due to speculation, while the hoarding of large investors indicates that more giant whales are optimistic about the future development of ETH.

4. ETH2.0 pledge

According to CryptoQuant data, in the past few days, the number of ETH held by the exchange has decreased significantly, and there are currently 8.17 million ETH left on the exchange. From May 2020, the number of ETH held by exchanges has decreased from a peak of 14.11 million to 8.17 million today, a drop of 42%.

The decline in exchange reserves indicates that ETH is flowing out of the exchange, and the outflowing ETH may be stored in wallets or may be pledged in the ETH 2.0 deposit contract.

5. The continuous explosion of DeFi

At present, the total market value of DeFi has exceeded 46 billion US dollars, and the total lock-up volume has reached 41 billion US dollars. The increase has been huge in just one month, almost declaring that 2021 will still be the time of DeFi, and the growth of DeFi is bound to Bringing more positive effects to Ethereum will also promote the rise of ETH currency prices to a certain extent.

3. LTC

Currently, LTC still does not have advantages in terms of application and other aspects. The only advantage is that it is an "old". It has to be admitted that sometimes as long as it lives for a long time, it can still exist in this market after experiencing ups and downs. It is deep and valuable because of its "deep qualifications". It is currently welcomed by Grayscale. In 2021, Grayscale's LTC trust holdings will be among the best. Paypal and Pornhub also use it as a payment method, and its currency price performance is also relatively strong. It can still be one of your configurations in 2021.

4. Uni

Uni is the leader of the current Defi concept, and it is also the "Bitcoin" of the decentralized exchange sector. The trading volume of Uniswap is basically stable at more than 40% of all decentralized exchanges, and Bitcoin ranks among all currencies. The market capitalization ratio is the same.

To some extent, Uni is able to feed back the existence of the concept of DeFi, especially now that investors are increasingly dissatisfied with centralized exchanges, the popularity of decentralized exchanges will gradually increase. At the time of Wall Street's "retail investors grouping together to overthrow institutions", the performance of traditional centralized trading platforms added fuel to the popularity of decentralized exchanges, and Uniswap is currently the best and most used decentralized exchange Place. Although Uniswap has higher slippage compared to professional market makers, it has been considered very successful. In addition, Uniswap investor Paradigm has top researchers who can provide more support and assistance for Uniswap v3 version. There are some governance problems in Uniswap, such as deadlock in proposals, and how to play a governance role without team leadership. However, as time goes by, these problems will be better improved. The current enemy of Uniswap is only It is only a matter of time before Uni really becomes Bitcoin in DeFi.

In just one month in 2021, the price of Uni has exceeded 300%, and its market value ranks 12th among all currencies. The probability of Russia and Japan entering the top ten is very high, but this is still considered by the market. The range of its value has not been fully demonstrated, so in 2021, more thought can be spent on Uni.

5. AAVE

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 officially migrated all the original LEND coins to the new AAVE token through a community proposal. The initial issue price is 1.7 U.S. dollar, the current price is 420 U.S. dollars, 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, that is, flash loans.

The attraction of flash loan is that it does not require any collateral, and the only limitation is the time of use. A loan is only valid if it is used within the same block in which it was issued and is repaid in full. 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 US$1.5 million in fees was generated, of which US$1.08 million was allocated to platform fund providers and US$460,000 was allocated to the Aave protocol.

In 2021, AAVE is still the most anticipated project in the loan mining sector.

6. Polkadot

The title "Ethereum's competitor" is enough to prove the excellence of Polkadot. The strength of community consensus, developer quality, and popularity are second only to Ethereum. It can be said that Polkadot currently inherits the position of EOS back then, and is also known as Ethereum. Killer, and the use of the domestic EOS community has gradually shifted to the Polkadot community. The market has turned Polkadot into "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, the Polkadot ecosystem already has projects in multiple fields such as DeFi, privacy, games, and wallets. The number has reached 338 and is still increasing. One-third of the projects are developed based on the Polkadot blockchain framework Substrate Parachain.

The Polkadot token DOT also performed quite well. The current overall market value ranks fourth, and it only happened within half a year after Polkadot was born. Although the current market is relatively controversial about it, there are still some high expectations. , so you can also pay attention to it in 2021.

7. Platform currency

The platform currency here mainly refers to the three major domestic platform currencies.

Naturally, there is no need to say more about BNB. Binance’s performance in 2020 can be described as thriving among the global digital currency exchanges, both in terms of customer volume and transaction volume. With the launch of the Binance Smart Chain, it has attracted a large number of The entry of large DeFi players can be described as a combination of centralization and decentralization, and their performance in 2021 is still worth looking forward to. As the only token of the Binance platform, HT can naturally reflect the value of the Binance platform.

The potential of HT lies mainly in HECO. As of February 1st, the TVL (assets locked on the chain) on HECO has exceeded 1.4 billion US 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 lending or DEX, HT's APY in HECO can easily reach more than 100%, leading other options. HECO is to HT, just like Grayscale is to Bitcoin. It has greatly improved the application range and market demand of HT within a cycle, and has become a super scene that changes the relationship between supply and demand of HT.

Since entering 2021, HT has increased by more than 60%. Although it cannot be compared with Uni, its performance in traditional platform coins is already very good. Moreover, HT has another advantage that it is very resilient. Huobi’s 20 % of income will be destroyed ht

Now 30 million US dollars per month, and 66% of mdex's income will go to buy ht repurchase. These two points are important fundamentals for HT currency price support.

The positioning of OKB has been vague since OKT came out, and the currency price performance has been continuously affected by OKT. However, OKEX CEO JAY has stated that okb is the only platform currency of OKEx, and all centralized operations of the platform will be centered on okb rather than OKB. okt. Okt is the underlying token of OEC, and its value is supported by the development and application of the chain itself.

Recently, OKEX has made frequent moves, and even named it Ouyi in Chinese. It also means that OKEX will have a new start in 2021, and we can also look forward to OKB.

The above are the currencies we recommend to you today. Of course, there are many good currencies. We just analyze some representative currencies in different sectors. There are still some currencies that are still worth looking forward to. The circle is developing so fast. In 2021, a value coin will pop up at some point in 2021. I want to seize the value coin at any time to dig out more potential coins, and follow our footsteps.