This year has been an amazing one for cryptocurrencies in general. As many of the world’s industries were dwindling as a result of the coronavirus pandemic, the cryptocurrency just got bigger every day. Unlike a couple of years ago, the market has changed significantly. Although the underlying blockchain technology is still being refined, there is still a lot of work to be done. While some digital assets did exceptionally well, others weren’t so lucky. Here are some of the biggest crypto winners and losers in the cryptocurrency world for the year 2020.
Although newer cryptocurrencies are being invented almost every other day, Bitcoin hasn’t gone out of fashion. Most pundits have said that its bull run in 2020 has been something from legend. Starting the year at around $9,500, Bitcoin has been on a crazy run. By the end of November 2020, the cryptocurrency shocked many as it hit $19,857, which represents a 177% increase. Bitcoin’s value has been continually growing this year because of several reasons such as institutional demand, political and economic instability around the world, and rising inflation. Furthermore, Bitcoins “halving” happened this year, which further limits the number of Bitcoin out there. However, many experts say that Bitcoin’s run is not over. They expect it to hit $20,000 and surpass it.
Ether has also been incredibly profitable crypto this year. With a market capitalization of $68,127B, Ethereum has shown critics that it’s a powerful contender all the same. Starting the year at about $125, this altcoin gained in value to about $600 at its peak this year, representing a 380 percent growth within one year. Unlike Bitcoin’s blockchain network, Ethereum has always been considered the go-to platform if you want to create something decentralized. Since Ethereum has an open-source blockchain network, developers of decentralized apps prefer it because of its interoperability and simplicity.
Additionally, it can support other crypto platforms apart from the native Ether (ETH). Platforms such as Aave (AAVE), Maker (MKR), and Uniswap (UNI) are all quite active and central to the ever-growing DeFi industry. This industry, in particular, has seen a lot of promise. In 2019, the number of assets in the DeFi ecosystem stood at roughly $3B. Today that number has surpassed the $13B mark; more than fourfold!
Litecoin is yet another favorite for 2020. Although it might not have had some bullish runs like its counterparts above, it’s still made some impressive moves in 2020. During the beginning of the year, the altcoin traded at around $35, a proper contrast from $85 it is at today. Litecoin’s market capitalization lay at around $5,792B, meaning that although it was not the best performing crypto in the portfolio, it still lands on the seven most performing cryptos throughout the year. Furthermore, this particular crypto boasts of being one of the easiest to mine. It takes the shortest time of all the cryptocurrencies and has one of the highest block rewards at around 25 LTC.
Ripple is one of the biggest cryptocurrencies out there in terms of market capitalization. Its goals and concepts aren’t like others in this group. That’s because while these others lean largely to individual users, Ripple is more centered toward financial institutions. Essentially, Ripple is a start-up that offers financial institutions the ability to make cross-border transactions instantly and directly. Although its mandate is quite powerful, it hasn’t seen the best year. Today, the altcoin is trading at $0.519, a loss from the highest mark of $2.77 a while back.