The term altcoins (Alternative Coins) means any cryptocurrency apart from Bitcoin.
In 2017, altcoins were Bitcoin competitors such as Litecoin and Dogecoin. These crypto’s saw a surge in popularity due to their low prices relative to Bitcoin. Besides, there were thousands of pump-and-dump schemes that rose out of nowhere.
Now, with the explosion of DeFi and increased usage of smart contracts. Altcoins belonging to the best projects in blockchain space are becoming more popular.
DeFi is new frontier in finance. And they offer more than theoretical value to their users.
Altcoins have actual revenues and tremendous utility within the DeFi industry.
Here is a list of the most potential Altcoins in 2021. They are some of the most promising Blockchain projects today.
Potential Altcoins in 2021
Ethereum is a smart contract platform that helps developers create decentralized apps (DApps). It was created by Vitalik Buterin in 2013 and had its programming language, Solidity. Developers pay a network gas fee in Ether to operate programs in the blockchain.
It was the first blockchain to introduce decentralized finance. And its early success is why a large part of DeFi utilizes Ethereum’s blockchain.
Ethereum is transitioning to version 2.0 over the coming year. And this will help decrease fees while allowing the new DApps a chance for their time in the spotlight.
Tokens currently represent most blockchain applications. Yet, Chainlink seeks to change this by bringing them into real-world scenarios.
Chainlink brings smart contracts to life by allowing them access to outside data. This allows them to make decisions based on different prices, events, and calls.
You use the smart contracts filtered through Chainlink to hedge against a bad season. In farmer’s case, they have increased insurance premiums. If values in their contract like share price or rainfall do not meet specific standards.
The potential for Chainlink’s use is endless. Thus, the top DeFi apps are willing to pay a premium price to have access.
Uniswap allows investors to swap Ether through decentralized platform that uses liquidity pools.
It provides two core products: providing and using liquidity. Subsequently helping traders get the best deal possible while maximizing profits.
The platform allows users to switch between any ERC-20 tokens with instant liquidity . Users can fill the pools by offering their funds in return for fees (profits).
Uniswap fees are paid with the UNI token.
Stellar Lumens (XLM)
Stellar is a decentralized platform that unites the world’s different banking systems. It uses various disconnected payment modes (ACH, SEPA, SPEI). Stellar’s network uses a decentralized ledger. So, it connects many systems through on-off ramps for all payment system
XLM can become the global payment network since Ripple. Her closest competitor is facing SEC investigation.
To transact on the Stellar Network, users must pay a fee in Lumens.
Aave offers higher interest rates with better security and anonymity. However, to get the loan, you have to provide a collateral more significant in value in the smart contract.
Smart contracts hold collateral in escrow. As a result, the middleman is replaced in loans. In case the borrower defaults, the lender receives payment from the smart contract .
Aave is offering 10% APY for stablecoin loans. Something unheard of in traditional finance.
Trade Altcoins Today
When choosing a trading platform, consider what altcoins it will give you access to. While there’s no centralized entity deciding which tokens are good and bad. Each exchange certainly makes its own decisions. Make sure that your choice of platforms matches the altcoins you want to invest in!