Cryptocurrencies Gaining Popularity – Cryptocurrency Rating 2020-2021

When choosing cryptocurrencies for investment, many analysts and well-known members of the cryptocurrency community recommend paying attention to assets with high capitalization and good history. But not everyone can afford to invest in Bitcoin or Ethereum, so it is better to pay attention to cryptocurrencies, which are just gaining popularity and can bring good profits in the future.

Top 5 promising cryptocurrencies for investing

The capitalization of the cryptocurrency market is constantly increasing, and if five years ago it was mainly due to the growth of bitcoin, today the attention of investors is attracted by coins that a few years ago no one had ever heard of. We’ve selected five promising cryptocurrencies worth a closer look in 2020.

Ethereum (ETH)

Many experts call Ethereum one of the most attractive cryptocurrencies in 2020. This is due to Ethereum’s platform for creating decentralized applications, where the cryptocurrency can be used for money transfers, serve as a means of savings or as a speculative asset (due to price fluctuations). The platform’s transition to the Ethereum 2.0 network is due soon, which will potentially increase interest in ether. In addition, many popular DeFi projects are built on Ethereum.

Maker (MKR)

Maker is a decentralized stabelcoin platform built on the Ethereum blockchain. The project has two assets: the DAI stablecoin and the MKR token. Users can deposit pre-defined assets as collateral against which they can receive DAI stablcoin. The MakerDAO platform has built an infrastructure that aims to stabilize the price of DAI at $1. By staking the MKR token, users can vote on network specifications and governance initiatives, including commissions, collateral rates and assets allowed to be used as collateral and more.

Compound (COMP)

Compound is an algorithmic protocol on the Ethereum blockchain. Compound has become one of the cornerstones of the DeFi industry. Compound is one of the largest DeFi protocols in the world with over $500 million in blockchain crypto assets.

Compound relies on the concept of overcollateralization: individuals can provide tokens to generate income, and borrowers can provide assets that are used as collateral to borrow other assets. For example, someone can deposit USDC, receive interest income from USDC, and at the same time use USDC to borrow ETH and pay the interest rate on the ETH loan.

Kava.io (KAVA)

Kava.io is a DeFi crosschain platform that offers secured loans and staplecoins to holders of major crypto assets,: BTC, XRP, BNB, ATOM and others. Users can secure their crypto-assets in exchange for USDX and KAVA. The Kava platform has two types of tokens: KAVA token and USDX Stablecoin.

Kava.io works with the Proof-of-Stake (PoS) consensus mechanism based on Tendermint. At its core, Kava relies on a system similar to MakerDAO with CDP, but uses Cosmos to add cryptocurrencies running on independent networks such as XRP, Bitcoin.

Binance Coin (BNB)

Binance Coin is a token owned by the cryptocurrency exchange Binance. Its advantage is the high reliability guaranteed by the platform. At the moment, the cryptocurrency is in ninth place in terms of market capitalization in the CoinMarketCap ranking. In addition, Binance Coin operates as part of the loyalty program of the Binance platform, and the ownership of BNB coins gives users discounts on trading fees and access to certain products of the exchange. In 2020, Binance launched a number of new products, including a mining pool and the Binance Smart Chain network, enabling BNB stacking and DeFi-application development.