Top 3 most prosperous cryptocurrencies and why is it important for the UC protocol?
Bitcoin continues to attract the greatest interest and investment inflow, but in terms of capitalization growth, it is inferior to many other projects that will eventually be able to move it.
Ethereum
In the top cryptocurrencies of 2021, this blockchain rightfully occupies a leading place. Ethereum smart contracts allow you to create algorithms for interaction according to pre-agreed and transparent rules: hold an auction, create a pool with deductions for attracting new participants, lend funds and get a percentage.
The wide application possibilities of smart contracts have made this cryptocurrency the best for creating decentralized applications and exchanges. Thanks to Ethereum, the DeFi and NFT markets continue to boom.
Over the past 12 months, the market for decentralized finance (DeFi) has grown 67 times, and the market for non-interchangeable tokens (NFT) is projected to increase 4 times in 2021. The vast majority of projects are built on the Ethereum blockchain, where the main scalability problem is the high cost of gas (transaction fees).
However, the developers are working on a “move” to the new proof-of-stake protocol, which will have a positive impact on both the speed of operations and commissions. Already, crypto investors have reserved over $6 billion to receive ETH 2.0, considering the new cryptocurrency the best option for investment.
Binance Smart Chain (BNB)
Currently, Finance Coin (BNB) is the most popular and successful exchange token in the entire industry. BNB is a proprietary token of the most extensive cryptocurrency exchange Finance. With its help, you can pay for trading commissions of the platform.
The Finance report says that in the ninth quarterly coin burn, the exchange destroyed 2,061,888 BNB worth a total of $36.7 million.
The Block analyst Larry Cermak commented on the burning of toxins and pointed out that the amount of toxins allocated for destruction is equal to 20% of Binance’s profit for the quarter. Therefore, according to him, the exchange’s revenue in the third quarter was $186 million, thus exceeding the indicators of the combined second and third quarters.
Cermak also said that in the past months, trading volumes on the spot market have declined sharply. Even though the market players did not show much activity, this quarter was the second most successful in the history of the exchange.
Recall that Finance must burn BNB tokens every quarter until it withdraws 100 million coins from circulation. Over the past nine quarters, 14.5 million BNB were destroyed, and there are still 85.5 million left.
Polkadot
Polkadot showed the best start in 2020. The project is less than a year old, and by capitalization it is already in the TOP 6, overtaking XRP and Litecoin. The value of the coin has increased 10 times over the past six months, and there is no deep correction characteristic of altcoins after a strong rise.
Polkadot offers a tool for the interaction of various blockchains with high rates of speed and security. As creator Gavin Wood says, Polkadot is a protocol created by developers for developers.
Each of them can create their own parachain using the existing libraries and sandbox and join the platform. Thus, different projects get the opportunity to freely exchange information and tokens.
The boom of the DeFi market has exposed the problem of interaction between various projects built on Ethereum. Gavin Wood was aware of this flaw because he was actively involved in its development.
Acala Network and Plasm Network have already joined Polkadot, and more than 20 applications are under consideration. The DOT cryptocurrency, which is the link between the parachains, has great prospects for growth in 2021. That is why the price remains high, despite a tenfold increase since the listing.
Result
In this article, we’ve reviewed the top three cryptocurrencies that are going to be attractive for investments in 2021. All of them and some others are supported by the UC protocol, that is why the UC is worth your attention.
