The last quarter of 2020 saw a bull run for the major cryptocurrencies, including ethereum and bitcoin. The primary reason for this is an increase in institutional investments in cryptocurrencies. Most notably, institutions invested in ethereum and bitcoin. However, these have not been the only movers in 2020. Binance coin (BNB), Cardano (ADA) and Polkadot (DOT) established themselves within that period.
As many analysts predicted at the end of 2020, the bull run continued into 2021. Now the big question is: Which cryptocurrencies upped their performance in the first quarter of 2021. It is not a surprise that the best performers in the last quarter of 2021 continue dominating the market.
According to Finance.yahoo, bitcoin, ethereum, Binance and tether dominated the market in the first quarter of 2021. Analysts base the performance on their markets cap and prices at the end of March 2021, as shown below:
Cryptocurrency market
These cryptocurrencies’ performance comes at a backdrop of increased investments in digital assets. For instance, in the first quarter of 2021, cryptocurrency capitalization exceeded $2 trillion, according to CoinGecko, which is a new top record.
However, comparing the major competing cryptocurrencies, Binance Coin (BNB), Cardano (ADA) and Polkadot (DOT) proportionally gained more than Bitcoin and Ethereum during this period. For example, CoinGecko reports that Binance Coin had a 710% gain, followed by Cardano and Polkadot.
What to expect in the second quarter of 2021?
With the current momentum, BTC, ETH, BNB, DOT, Tether (USDT) and Cardano (ADA) will lead the investment pack. This is because, according to the best performers’ evaluation criteria, they are likely to continue their domination.
The major criteria for evaluating the performance of a cryptocurrency for investment purpose
The reason these cryptocurrencies continue their high performance is a positive evaluation from analysts and potential investors.
Length of time on the market
People assess the period a cryptocurrency has been on the market. The longer the token or coin has been on the market, the more preferred it is. By doing this, people avoid investing their resources in shitcoins.
Past performance
Investor prefer to put in their funds in cryptocurrencies, which have an excellent track record. This is the reason bitcoin and ethereum dominate the market up to this day. People know that these coins or tokens can never disappear from the blockchain.
Technology
The technology that backs each cryptocurrency is very important to consider. Users assess the security, transaction costs, speed and scalability of the technology. Therefore, a cryptocurrency with better technology attracts more investors.
Rate of adoption
Human beings are rational. They base their decisions on selected criteria. They also consider the sentiments of other people before making investment decisions. As a result, investors put their money where reputable individuals and institutions invest in. That is why they say, “Money goes where money is.”
We have noted that the bull run that started in 2020 continued in 2021, with ETH, BTC, ADA, and BNB dominating the market. This trend is most likely to continue into the second quarter of 2021. The high performance of these cryptocurrencies is not a coincidence. Outstanding features such as security are part of their technology.
I am Mashell Chapeyama, a crypto writer, analyst, and researcher. My burning interest for cryptocurrencies and the blockchain makes me willing to share the knowledge I have gathered over the past 10 years with crypto enthusiasts around the world.
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