The year 2021 was a banner year for cryptocurrencies. New altcoins were launched, and more mainstream investors joined than in the previous years. It isn’t surprising that the best performing altcoin is the cryptocurrency’s firstborn, Bitcoin. After all, it had a head start of a few years. But what surprised many pundits was that Ethereum-based coins like ETH (Ether) did better than BTC (Bitcoin) in the market in 2021. That’s right—while Bitcoin got the most attention, other cryptos also reached record highs.
While BTC has doubled in value in November of last year, ETH gained 530% in the same period. However, when it comes to market value, BTC is still on top, being valued at around USD$1.1 trillion. ETH’s market value was around USD$450 billion at its peak. This figure makes ETH the second-largest cryptocurrency in terms of market capitalization.
What Are Ethereum Tokens?
Ethereum tokens are digital assets built onto the Ethereum blockchain. These tokens can represent many things; a token can be a coin like Ether or it may refer to identity, access rights, IOUs, collectibles (like NFTs), or even a physical item. These tokens are managed by smart contracts, which are programs in the blockchain used to automate transactions, making said transactions smoother and easier for participants.
Because tokens are easy to make, a lot of people and companies make their own. The Ethereum platform makes it easy for anyone to create their projects. Using tools in the platform itself, anyone can create tokens in minutes. Creators generally follow ERC-20 (Ethereum Request for Comments-20) to develop Ethereum tokens. ERC-20 is itself a token; it is the technical standard for other tokens and contains the rules that other tokens in the Ethereum blockchain must follow.
If you’re planning on getting in, this is probably the best time—Ethereum’s brand is growing. But as with any other cryptos, you’re going to need a crypto wallet. “Why,” you might ask. You can find out here now.
Ethereum Tokens To Watch Out For
There is a myriad of opportunities for investors in the Ethereum community. Here are a few Ethereum tokens worth watching out for:
1.Ether (ETH)
Of course, any discussion involving Ethereum tokens wouldn’t be complete if Ether (ETH) is left out. As mentioned earlier, Ether, the Ethereum blockchain’s native crypto, has had a spectacular 2021, reaching an impressive USD$4,800 in November despite starting the year at about USD$730. ETH outperformed all cryptocurrencies during that period and made it plain to all and sundry that Ether is a worthwhile investment.
Ether’s price as of April 2022 sits at around USD$3,500, but it’s poised for another growth. The altcoin does well with DeFi (Decentralized Finance) compared with other coins, which many think indicates another solid performance this year. Ethereum will also release the much-anticipated ETH 2.0.
The upgrade’s exact date of release is yet unknown, but what’s known is that this version will be more scalable and efficient. These characteristics translate to faster processing of transactions. Bottlenecks will ease up, which means this version won’t be energy-intensive. The upgrade will open the Ethereum network for more projects, further boosting the price of the tokens.
2.Basic Attention Token (BAT)
This token is among the top picks for entrepreneurs because it lets them buy highly effective ads for their organization. An ERC-20 token, BAT powers a new digital ad platform based on the Ethereum blockchain. This platform gives advertisers a better ROI on their ad budget. BAT has excellent support and is continuously improved and upgraded. This support is expected to drive the token to surpass its previous record of USD$1.65.
BAT is generally considered a good investment because, unlike other tokens, it has utility value. And due to its robust ecosystem, BAT users continue to increase, which will likely drive its value up. Companies that advertise on the platform will also multiply as a result of the user increase.
3. Polygon (MATIC)
Polygon is one of the biggest projects in the cryptocurrency industry; it’s a multi-chain ecosystem created to make Ethereum blockchain transactions quicker and at less cost. The token can also make the blockchain interact smoothly with other networks, making it more attractive to investors.
One of the most successful cryptos in 2021, MATIC increased more than 11,000% in just one year. The token was valued at just 2 cents at the start of the year; six months later, it was valued at more than USD$2.
As of April 2022, MATIC is valued at USD$1.58 and has a market capitalization totalling more than USD$12 billion. The token allows for partnership opportunities on a global scale; it also has a sizeable community and ecosystem. These factors are crucial for making MATIC have excellent growth potential. The token also has great scalability, and with an increased demand for NFTs (non-fungible tokens), MATIC is ripe for a bullish trend this year.
4. Uniswap (UNI)
Uniswap is designed to provide automated liquidity, making it easy to swap Ethereum ERC-20 tokens without the need for an order book or any kind of central facilitator. With Uniswap, tokens are exchanged using liquidity pools defined by smart contracts. Tokens are deposited into smart contracts by the liquidity providers, where their price is determined. Providers are allowed to receive a 0.3% trading fee.
Like the other Ethereum tokens listed here, the token started 2021 slow. Uniswap was listed as worth less than USD$5 at the beginning of 2021. However, the token’s value ballooned to USD$17 by December. The token’s value has dropped recently (it’s listed at USD$11 as of April 2022), but it remains one of the best-performing cryptos out there.
5. Decentraland (MANA)
Ethereum has an excellent network and can support diverse platforms operating in its ecosystem. Take for example Decentraland (MANA). Decentraland is a virtual reality platform that operates on the Ethereum ecosystem and is one of Ethereum’s best performing tokens. The Decentraland platform can be used to purchase virtual lands where people can build and eventually monetize their virtual property.
The platform’s two tokens, LAND and MANA, are among the best performing cryptos in 2021. MANA, in particular, increased by 2000% in value. LAND is a non-fungible token, while MANA is based on ERC-20. MANA can be used to buy names, avatars, wearables, and others on the platform itself. Now that interests in NFTs seem to be getting a second wind, these tokens are in for another round of growth. As of April 2022, MANA is at USD$2.5 with a market cap of a little over USD$4.6 billion.
Conclusion
Ethereum tokens performed well in 2021 partly due to its well-regarded ecosystem and the diversity of token types. The tokens listed here are among the most likely to perform well this year, according to pundits. The tokens’ utility value makes them popular among investors and entrepreneurs. In turn, this popularity makes crypto watchers believe that Ethereum tokens are ripe for another bullish trend.
Founder Dinis Guarda
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