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

It ‘s been a good year for the stock commercialize, with the broad-based S&P 500 up by roughly 25 %, through Dec. 8. But it ‘s been a great class for the cryptocurrency outer space, with the aggregate value of digital currencies more than tripling to $ 2.37 trillion over the same bridge .
But for some well-known cryptocurrencies, a 200 % year-to-date gain would represent a cliff in the bucket. For each of the following four cryptocurrencies, a $ 10,000 investment at midnight on Jan. 1 would have easily made you a millionaire, if not billionaire, as of deep flush on December 8 .
A messy pile of one hundred dollar bills.

Shiba Inu: $5,024,657,500

In what may well be described as the most dazzling single-year advance in history, meme coin Shiba Inu ( SHIB 1.19 % ) has moonshot from an opening value of $ 0.000000000073 per SHIB on Jan. 1 to about $ 0.000037 per keepsake as of Dec. 8. In losing six zeroes, Shiba Inu has delivered a greater than 50,000,000 % year-to-date profit. In context, a $ 10,000 investment would nowadays be worth more than $ 5 billion !
As you might imagine, a draw of catalysts have played a role in pushing Shiba Inu to historic short-run gains. In no detail order :

  • More cryptocurrency exchanges than ever are listing SHIB, which is improving liquidity and increasing awareness of the coin.
  • The launch of decentralized exchange ShibaSwap in July has also boosted liquidity, as well as lifted the average hold period for SHIB tokens (thanks to staking capabilities).
  • The fear of missing out (FOMO) has clearly played a role, with investors expecting more upside, even on the heels of life-altering gains.
  • Coin burn has reduced the supply of SHIB tokens, making each remaining coin scarcer.

But in malice of all these positives, a bare accuracy remains : Shiba Inu lacks competitive advantages, true differentiation, and meaningful utility. Fewer than 380 merchants accept SHIB as a form of payment, and nothing about it stands out as a lure that ‘ll drive businesses to accept it over a growing sea of early payment coins. Shiba Inu may have had a year to remember in 2021, but it could well be the worst-performing popular digital currentness in 2022 .
A person wearing headphones who's using their smartphone to play games.

Axie Infinity: $2,177,500

Putting aside Shiba Inu ‘s outlier gain, the following best-performing cryptocurrency in 2021 has been Axie Infinity ( AXS 9.67 % ). A $ 10,000 investment to begin the year in this relatively hidden token would immediately be worth about $ 2.18 million .
Axie Infinity is a play-to-earn game built on the trust Ethereum blockchain. The game allows users to collect, raise, and struggle token-based monsters known as Axies ( you ‘ll need at least three Axies to go to battle ). As with traditional struggle gambling, experience points are earned by the winner, which can be used to improve certain aspects of a users ‘ Axies .
additionally, each of these Axie ‘s is a non-fungible token ( NFT ) that can be monetized. Users can buy or sell Axies in a marketplace, or they can be bred to create unique Axies that can be utilized in the game or sold late .
The reason Axie Infinity has probable done therefore well has to do with the tax income the game is generating. In August and September, Axie brought in $ 342 million and $ 220 million in tax income, respectively. That placed it second only to Ethereum among blockchain-based applications .
possibly the biggest business, as we head into 2022, is whether Axie Infinity can remain democratic. With indeed many other blockchain-based games in development, gaming interest can shift in the wink of an center .
A person wearing a virtual reality device and interacting with objects from the virtual world.

The Sandbox: $1,434,500

Another cryptocurrency that was n’t playing about in 2021 is The Sandbox ( sandpaper 3.22 % ). sandpaper, the primary coil protocol keepsake of the platform, began the year below $ 0.04, but has since rallied to well over $ 5. This means a $ 10,000 investment on Jan. 1 would be deserving over $ 1.4 million, as of Dec. 8.

The buzz surrounding The Sandbox is slightly exchangeable to what ‘s fueled Axie Infinity higher. The difference is The Sandbox is all about monetizing the metaverse — i, the future iteration of the internet that allows users to interact in a 3D virtual environment. This blockchain-based bet on platform rewards gamers for creating virtual worlds and interacting within their own or early worlds .
What ‘s peculiarly appealing about The Sandbox is that, unlike most games which are owned/developed by corporations, users retain full moon ownership of their virtual worlds as NFTs. These NFTs can be utilized within a plot on The Sandbox ‘s platform, or they can be monetized on its market .
furthermore, SAND tokens have probably benefited from brand-name companies investing in the metaverse. For exemplar, Facebook changing its identify to Meta Platforms and announcing billions in annual investments geared at the metaverse and virtual reality provides a palpable lift for SAND .
Though it remains to be seen if metaverse investments will pay off in the short-run, The Sandbox has surely put itself on the map this year .
A person holding a glowing golden lock that's surrounded by latticework representing blockchain nodes.

Solana: $1,186,600

survive, but not least, a $ 10,000 investment in Solana ( SOL 0.43 % ) at the get down of the year would have crypto investors smiling ear to ear. That ‘s because Solana has skyrocketed from around $ 1.61 to north of $ 191 per token. Investors would be nearing $ 1.2 million in their portfolios with an initial $ 10,000 investment .
The cardinal aspect about Solana that ‘s driven its token price higher is the want for speed. Whereas Bitcoin ( prior to the Taproot upgrade ) and Ethereum are processing approximately 7 and 13 transaction per second ( TPS ), Solana is capable of handling 50,000 TPS. To put this figure into context, 50,000 TPS would be more than double the 24,000 TPS claimed by ball-shaped payment work giant star Visa .
The mystery sauce that allows Solana to be such a blockchain-based rush monster is its singular proof-of-history protocol. typically, validators need to talk to each early to determine how much time has passed between events. But with Solana, the proof-of-history protocol establishes a record of time that ‘s elapsed between events. Eliminating this validator lag dramatically speeds up the network and gives it real-world solicitation .
The ice on the coat is that Solana ‘s transactions are besides markedly cheaper than payments executed on existing infrastructure. It would take in the neighborhood of 4,000 transactions for a user to tally a mere $ 1 in fees on Solana ‘s network.

Among this years ‘ top crypto performers, Solana is the one you should be watching closest .

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