2020 was a very eventful year for cryptocurrencies. Bitcoin’s performance as a sole asset brought more profits and percentages than any other traditional investment option. 2020 was just the beginning, and we cited the winner and loser coins here. 2021 holds huge potential, not only for Bitcoin but also for various other cryptocurrencies. Find out here which 3 coins could shoot through the roof in 2021.
1. The Graph (GRT)
The Graph is an indexing protocol for networks such as Ethereum, InterPlanetary File System (IPFS), and the POA network.
With the help of the graph protocol, APIs, so-called subgraphs, can be created by anyone. APIs are used to pull data from the blockchain in the most efficient way. These subgraphs then query data from the so-called GraphQL (Graph Query Language). Query Languages are database languages that make it easier to find information. The Graph Network or the GRT token acts as a “work token” and guarantees security for these information searches and queries.
2. Filecoin (FIL)
Filecoin is a decentralized cloud service for storing public data.
Above all, the network offers an open market with completely new storage and economic model. It has great utility for public data such as open access data, historical archives, websites, games, insurance, and many others.
The concept begins with the customer who wants to save their data securely and decentrally. In the next step, this customer will now look into the Filecoin network. There he sees which “miners” have the capacity and offers to save his data. The advantage here is that the prices for the storage are set in advance by both parties.
After the customer and the miner have come to an agreement, a deal is concluded. In the following step, the client sends their data directly to the miner, who then saves them for a specific and previously defined period of time.
For the data storage, the miner then receives a “storage fee” (payment for storage) and also the chance of mining bonuses, which are also distributed in Filecoin.
Due to the principle of distributing the data to where the demand for it is growing, the miners can see which data has a growing or high demand so that they can also host it.
As a result, the data is transported ever closer to the user who requests it. So when a customer is looking for a specific file, he can now look for the fastest and cheapest miner that will save it.
3. Aave (AAVE)
Aave is a decentralized financial protocol that enables users to borrow and lend cryptocurrencies. The Aave token runs on the ERC-20 chain and has a deflationary effect similar to Bitcoin. In the Aave network, lenders receive interest while borrowers pay interest. Until then, it’s a completely normal lending business. But Aave wouldn’t be Aave if it didn’t have some advantages and unique selling points compared to other comparable projects in the crowded crypto lending market.
Aave is a so-called governance token, which gives users a say in the future development of the protocol. In addition, 20 cryptocurrencies are currently available for borrowing and lending. Aave borrowers can also choose between fixed or variable interest rates. This creates a certain level of cost security in, particularly volatile times.
Conclusion
Although we mentioned the above coins that have huge potential, one must always be on the lookout and read about the specificity of each token, as in getting to know what purpose does the coin serve. Long gone are the coins that only serve the purpose of peer-to-peer payment transfers only.
Today we have much more, and the DeFi market is there with many interesting tokens. That’s why it is always advisable to stay in the loop with CryptoTicker’s articles, as we will always keep you updated and ahead.
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HAPPY NEW YEAR 2021!
Rudy Fares
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