Cryptocurrencies stand out for their amazing performance in 2021. In November, the industry's market value briefly exceeded $3 trillion.
After the recent market turmoil, the market cap is now around $2 trillion.
With market capitalizations of $807 billion and $385 billion, bitcoin (BTC) and ethereum (ETH) are two of the most valuable digital assets in the world.
At the same time, the total number of cryptocurrencies has risen to nearly 8,000.
Not all of these digital items have any practical use, and below are 5 cryptocurrencies with gem hand tags.
1. Cosmos (ATOM)
The Cosmos decentralized network was launched in 2014 to enable blockchains to communicate with each other.
Developers can use the platform's open source tools to build blockchains that can be used by others.
The goal of the Cosmos ecosystem is to build a linked blockchain network where data and money can be exchanged freely.
The native token of the network is ATOM.
Just like depositing money into a bank account, users can pledge their ATOM to receive rewards over time.
The annual rate of return for Cosmos varies between 7% and 20% per year, depending on the amount staked in the network at the time.
The Cross-Chain Communication (IBC) protocol links all blockchains in the Cosmos ecosystem.
The IBC protocol was enabled in February 2021, when Cosmos launched the Stargate update.
Thanks to this move, for the first time, hundreds of blockchains on its platform were able to interact.
ATOM grew by 550% in the last year. With a current market capitalization of $11.6 billion, Cosmos is the 17th largest cryptocurrency.
2. Earth (MOON)
Stablecoins pegged to the fiat currency of the Terra network launched in April 2019.
Instead of fiat currency reserves, coins are algorithmically pegged to their respective currencies. Stablecoin prices are stabilized using the LUNA-USD algorithm.
Terraform Labs invented one such stablecoin: TerraUSD.
Since the IMF's Special Drawing Rights (SDRs) are minimally volatile, TerraSDR coins help keep terraSDR's value stable in the background.
The Terra network is a proof-of-stake blockchain.
In exchange for validating each transaction, the network charges a small fee to the validator.
TerraSDR tokens are used to pay transaction fees and reward validators.
Terraform Labs raised $150 million from investors in July 2021.
Terra's Ecosystem Fund received funding to support blockchain-based initiatives.
In addition, Terra completed the refurbishment of columbus-5 in September. Thanks to the update, users can now transfer Terra assets to other blockchains.
3. Filecoin (FIL)
Filecoin is a decentralized peer-to-peer (P2P) file storage network launched in 2017.
The network uses its decentralized structure to maintain the integrity of data locations, making it easy to retrieve and impossible to review at the same time.
Filecoin designed a publicly verifiable storage solution that doesn't rely on a single central authority, in contrast to centralized data providers like Amazon (AMZN) Web Services.
Instead, the platform's file storage network is protected by proof of copy and proof-of-space protocols.
FIL is the native digital token of the network.
"Storage miners" are paid by users to store their data on the Filecoin network, and provide money as an economic incentive to guarantee the reliability of the network.
Storage miners use computers connected to the internet to store data. Anyone can earn FIL rewards by providing storage space to other users.
With a total market capitalization of $4.5 billion, FIL-USD is the 40th most valuable cryptocurrency.
4. Solana (SOL)
Solana is a smart contract blockchain that will be launched by Anatoly Yakovenko in March 2020 and provides a high-throughput, low-cost platform that simplifies DApp production.
Proof-of-Stake (PoS) and Proof-of-History (PoH) protocols are used to power networks.
Solana's hybrid design makes it a reliable choice for dApp and NFT applications due to its flexibility.
In addition, because the PoH protocol does not require validators to connect, Solana can process up to 50,000 transactions per second.
Compared to Ethereum's high gas fees, the network charges about $0.00025 per transaction. Both retail and institutional investors have taken a keen interest in digital currencies.
For the platform to function properly, you must use SOL-USD.
Solana's stock price rose 5,800 percent to $139 last year. With a market capitalization of $43.2 billion, SOL is the fifth most valuable cryptocurrency in the world.
5. Cardano (ADA)
Cardano is the third generation of blockchain launched in 2017. It competes with Ethereum and other decentralized application platforms, just like Avalanche.
Similarly, the coin aims to be an ideal blockchain platform for smart contracts and decentralized financial applications (DeFi).
Since its inception, Cardano has established itself as the industry's only peer-reviewed blockchain platform with its native currency, ADA.
It is used to incentivize, transact, and participate in network governance.
The Alonzo hard fork update, released in September, includes smart contract functionality for the protocol blockchain.
Because of this, Cardano claims that the platform is more efficient, scalable and more secure.
ADA-USD began trading in 2021 at $0.18.
In early September, the cryptocurrency hit an all-time high (ATH) of $3.10.
With a market capitalization of $39 billion, Cardano is the seventh largest cryptocurrency in the world.