Written by Aditya Raghunath at The Motley Fool Canada
Several cryptocurrencies have generated exponential returns to investors in 2021. One of the top-performing cryptocurrencies this year is Solana (CRYPTO:SOL), which has gained close to 9,500% year to date. So, a $100 investment in the SOL token at the start of 2021 would be worth almost $10,000 today.
Solana has multiple advantages over peer blockchain networks that have driven its rapid growth and widespread adoption. It offers an inexpensive, fast, and easily scalable network to users, which has allowed the Solana blockchain to onboard projects at a rapid pace. At the time of writing, Solana has executed close to 50 billion transactions on its network with an average fee of $0.00025 per transaction.
Its stellar rise has meant Solana is now the fifth-largest cryptocurrency in the world, valuing the SOL token at a market cap of US$54.5 billion. While Solana has delivered staggering gains this year, let’s take a look at three other digital tokens that have outpaced SOL in 2021.
Polygon
The Polygon (CRYPTO:MATIC) blockchain network has gained popularity in 2021, as it aims to become a prominent player in the Web 3.0 space. Polygon’s digital token is called MATIC, which has surged by 14,000% this year, making it the 14th-largest cryptocurrency in the world, valued at a market cap of US$18 billion.
Polygon has partnered with several other participants eying expansion in the blockchain space, including Uniswap and Opera. It is a layer two network, which means Polygon is designed to improve the scalability and transaction speed of the Ethereum network. Basically, Polygon’s layer-two solution is built on a proof-of-stake mechanism, making it energy efficient, scalable, and cheap.
Axie Infinity
Axie Infinity (CRYPTO:AXS) is the 29th largest cryptocurrency in the world. Its digital token is called AXS and has gained 16,400% in 2021. A metaverse-related cryptocurrency, Axie Infinity is a play-to-earn game where you can collect monetary rewards by playing the online game.
A key catalyst of the price gain of the AXS token was the ability to stake the digital asset as well as the airdrop disclosed in September. Several tokens undertake an airdrop, which is basically giving away tokens for free to early investors.
The AXS token is also expected to be the in-game currency for Axie Infinity’s game by early 2022, which should increase demand significantly going forward.
The Sandbox
The final cryptocurrency on my list is The Sandbox (CRYPTO:SAND), which has gained close to 16,000% in 2021. The SAND token is valued at a market cap of US$5.37 billion, making Sandbox the 34th largest cryptocurrency in the world.
Similar to Axie Infinity, Sandbox also operates in the metaverse space, where you can create or buy assets on this blockchain network.
The Sandbox will soon be launching on mobile devices in 2022, expanding its user base rapidly. But investors should note that similar to most other gaming tokens, the performance of the SAND token will be closely tied to the popularity of its underlying game.
The post 3 Cryptocurrencies That Have Outpaced Solana in 2021 appeared first on The Motley Fool Canada.
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Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns and recommends Ethereum.
2021
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