The 5 most exciting cryptos launched in 2021

Here are five new cryptocurrency projects that should be on your radar.

Key points

• Over 6,000 cryptocurrencies were launched in 2021, but investing in new projects carries greater risks.
• Gaming, Web 3, decentralized finance, and specialist blockchain networks are all exciting areas.

The cryptocurrency industry has made huge strides towards the mainstream in 2021. The total crypto market cap has grown from around $ 770 billion to $ 2.2 trillion in just 12 months, according to data from CoinMarketCap. And the number of cryptocurrencies has grown from around 10,000 at the start of the year to over 16,000 as of this writing.

Considering how quickly the crypto industry is changing, it is very difficult to look at these new coins and choose the next Solana (SOL) or Axie Infinity (AXS). But it is possible to identify trends and select interesting projects.

So which of these 6,000 new pieces stands out? We’ve picked out a few that might be worth checking out.

1. Star Atlas (ATLAS)

The gaming industry to win is on fire right now, and metaverse tokens are all the rage. This could be another passing trend. But games that offer rewards with real value for time spent in the game combined with improved gaming technology could mean that we are on the cusp of real change for the gaming industry.

Built on the Solana network, Star Atlas is a gaming metaverse with realistic graphics in which players pilot spaceships to explore new planets. Players can join factions in the game, customize their characters, mine resources, and build houses in space.

2. Only 1 (LIKE)

There is a lot of talk about Web 3, which is essentially the next generation of the Internet. Web 3 is all about cutting out the middleman from a lot of the activities you do online, whether it’s social media or browsing.

A number of interesting Web 3 projects launched before 2021, such as Helium (HNT) and Livepeer (LPT), are starting to gain traction. But as of now, it’s unclear whether any projects can actually replace existing industry giants. Only 1 is one of the few emerging decentralized social platforms. It is based on the premise that content creators should be rewarded for their activity on social media, just like users who give their attention to that content.

3. Clover Finance (CLV)

Decentralized finance (DeFi) – a host of apps that cut out middlemen from all kinds of financial transactions – took off last year. Increased regulation could be a problem in 2022, as some sort of crackdown on banking-like operations is almost inevitable. But at the same time, many people who first invested in crypto in 2021 may be ready to explore DeFi.

Clover Finance is an intriguing project that makes DeFi more accessible. Some of the barriers to entry are overly technical interfaces, a lack of interoperability between blockchains, and high gas charges, especially on Ethereum (ETH). Clover addresses these challenges with a multi-chain, zero-gasoline end-user portfolio.

4. Ardana (DANA)

Ardana is a DeFi platform based on the Cardano Ecosystem (ADA). Cardano took a slow and steady approach to development, which frustrated some investors. However, the hope is that in the long run Cardano’s platform will be more reliable and secure. This is why Cardano’s DeFi platform is particularly exciting.

The project is based on Ardana’s stablecoins and also has a decentralized exchange and offers various yield-generating options. Security is a big concern for DeFi users – we have already seen several large-scale DeFi hacks and various DeFi scams. As such, one of the big attractions of Ardana is the reputation of Cardano which may well help set the platform apart.

5. Flux (FLOW)

Several smart contract cryptocurrency platforms produced extraordinary gains in 2021. These are essentially programmable ecosystems, and the ones that made great strides were general purpose platforms that processed transactions quickly and cheaply. cost. One thing that is likely to happen in the coming years is the emergence of more specialized smart contract platforms, aimed at specific industries such as DeFi, gaming, or non-fungible tokens (NFTs).

Flow was founded by the people behind the pioneers of NFT, CryptoKitties. NFTs are essentially certificates of ownership encoded in digital elements. The huge popularity of NFTs is one reason for the heavy network congestion on Ethereum – and one of the driving forces behind Flow. It is a blockchain specifically designed for NFTs and designed to remove bottlenecks on the blockchain. The coin has been in development for several years, but its mainnet became fully operational in 2021.

Small cap cryptos carry more risk

Any investment in cryptocurrency is risky, but buying newer, smaller-cap cryptos is even riskier. Not only do these new coins have a higher chance of failure, but they also have less liquidity. Prices will be more volatile and it may be more difficult to sell your tokens. Additionally, many are not available on major cryptocurrency exchanges.

If you want to go downstairs and buy cryptos before they get big, be careful. There is a higher chance of scams or stack draws like the Squid Game (SQUID) token where the developers withdrew after just a week, taking over $ 3 million in investor funds.

I bought a very small amount of some of the above cryptos. I’ve also gained some by providing cash early on, which can be a good way to get exposure to new projects. It also comes with risks, but if you plan to branch out into less common coins and tokens, it’s worth considering.

Even so, the bulk of my portfolio is more established cryptocurrencies, as they can still offer big gains with much lower risk. Ultimately, the two golden rules of crypto investing apply: Do your own research and invest only the money you can afford to lose.