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4 Cryptocurrencies That Turned $10,000 Into $1 Million (or More) in 2021

4 Cryptocurrencies That Turned $10,000 Into $1 Million (or More) in 2021
Written by publishing team

It’s been a good year for the broad-based stock market Standard & Poor’s 500 By about 25%, through December 8 brilliant A year for the cryptocurrency space, the total value of digital currencies more than tripled to $2.37 trillion on the same scale.

But for some well-known cryptocurrencies, the 200% year-to-date gains could represent a drop in the group. For each of the following four cryptocurrencies, an investment of $10,000 at midnight on January 1st could easily have made you a millionaire, if not a billionaire, as of the late evening of December 8th.

Image source: Getty Images.

Shiba Inu: $5,024,657,500

In what could be described as the most eye-catching one-year gain in history, the meme coin Shiba Inu (CRYPTO: gray hair) Shiba Inu had an opening value of $0.0000000073 per SHIB on January 1st to approximately $0.0000037 per token as of December 8th. In this context, investing $10,000 would now be over $5 billion!

As you might imagine, a lot of catalysts have played a role in driving Shiba Inu to historical gains in the short term. Not in any particular order:

  • More crypto exchanges are listing SHIB, which improves liquidity and raises awareness of the coin.
  • The launch of the decentralized exchange ShibaSwap in July boosted liquidity, as well as raising the average holding period of SHIB tokens (thanks to its staking capabilities).
  • Clearly, fear of losing out (FOMO) has played a role, as investors anticipate more upside, even in the wake of life-changing gains.
  • Coin burning reduced the supply of SHIB tokens, making every remaining coin even scarcer.

But despite all these pluses, a simple fact remains: Shiba Inu lacks competitive advantages, true differentiation, and purposeful utility. Fewer than 380 merchants accept SHIB as a form of payment, and nothing about it stands out as a temptation for businesses to accept it on a growing sea of ​​other payment currencies. Shiba Inu may have had a year to remember in 2021, but it could be the worst performing popular cryptocurrency in 2022.

A person wearing headphones and using their smartphone to play games.

Image source: Getty Images.

Axie Infinity: $2,177,500

Shiba Inu gains aside, the next best-performing cryptocurrency in 2021 was Axi Infinity (CRYPTO: AXS). An investment of $10,000 to start the year in this relatively obscure token would now amount to approximately $2.18 million.

Axie Infinity is a win-win game based on trust Ethereum blockchain. The game allows users to collect, breed and battle token-based monsters known as Axies (you’ll need at least three axes to go into battle). As with traditional battle games, the winner gains experience points, which can be used to improve certain aspects of the user’s hubs.

In addition, each of these Axie’s is a non-fungible (NFT) token that can be monetized. Users can buy or sell Axies in a market, or they can be bred to create unique Axes that can be used in-game or sold later.

Probably the reason why Axie Infinity is doing so well is the revenue that the game generates. In August and September, Axie generated $342 million and $220 million in profits, respectively. This placed it second only to Ethereum among blockchain-based applications.

Perhaps the biggest concern, as we head into 2022, is whether Axie Infinity can remain popular. With so many other blockchain-based games in development, interest in gaming can shift in the blink of an eye.

A person wearing a virtual reality device and interacting with objects from the virtual world.

Image source: Getty Images.

Sandbox: $1434,500

Another cryptocurrency that was not in circulation in 2021 is sand (CRYPTO: sand). SAND, the platform’s underlying protocol token, started the year at less than $0.04, but has since risen to over $5. This means that an investment of $10,000 on January 1 will be more than $1.4 million, as of December 8.

The hype surrounding The Sandbox is a bit like Axie Infinity fueled the top. The difference is that Sandbox is all about monetizing the metaverse – the next iteration of the Internet that allows users to interact in a 3D virtual environment. The blockchain-based gaming platform rewards players for creating virtual worlds and interacting within their own or other worlds.

What is particularly attractive about The Sandbox is that, unlike most corporate owned/developed games, users retain full ownership of their virtual worlds as NFT. These NFTs can be used within a game on The Sandbox platform, or they can be monetized from its marketplace.

Moreover, it is possible that SAND tokens have benefited from brand-name companies investing in the metaverse. For example, Facebook changed its name to ID pads The announcement of billions of annual investments directed towards virtual reality and metaverse provides a significant boost to SAND.

Although it remains to be seen if distressed investments will pay off in the short term, The Sandbox has definitely put itself on the map this year.

A person holds a glowing golden padlock surrounded by grid works representing blockchain nodes.

Image source: Getty Images.

Solana: $1,186,600

Last but not least, invest $10,000 in Solana (CRYPTO: SOL) At the beginning of the year there will be crypto investors smiling ear to ear. That’s because Solana has jumped from around $1.61 to $191 per token. Investors approach $1.2 million in their portfolio with an initial investment of $10,000.

The main aspect of Solana that led to its premium price tag is the need for speed. while Bitcoin (Before the Taproot upgrade) Ethereum processes about 7 and 13 transactions per second (TPS), Solana is capable of handling 50,000 TPS. To put this number in context, 50,000 TPS would be more than double the 24,000 TPS claimed by a global payment processing company Visa.

The secret sauce that allows Solana to act like a blockchain-based speed demon is his unique history-proving protocol. Usually, auditors need to talk to each other to determine the amount of time that elapses between events. But with Solana, the Proof of Date protocol creates a record of the time elapsed between events. Eliminating this validator lag significantly speeds up the network and gives it real-world appeal.

It turns out that Solana transactions are also significantly cheaper than payments made on existing infrastructure. It would take approximately 4,000 transactions for a user to charge just $1 in fee on Solana’s network.

Among the top crypto artists of the year, Solana is one you should keep a close eye on.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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