3 Cryptocurrencies That Have Outpaced Solana in 2021

Cryptocurrencies such as Polygon and The Sandbox have outpaced Solana in 2021.

| More on:
crypto blockchain

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns and recommends Ethereum.

More on Investing

Man data analyze
Tech Stocks

3 Reasons Celestica Stock Is a Screaming Buy Now

These three reasons make Celestica stock a screaming buy for long-term investors.

Read more »

profit rises over time
Dividend Stocks

These 2 Dow Stocks Are Set to Soar in 2025 and Beyond

Two Dow Jones stocks are screaming buys but Canadians must hold them in an RRSP or RRIF to avoid paying…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Use Your TFSA to Earn Ultimate Passive Income

If you have a TFSA, then you have the key to creating ultimate passive income. All you need is a…

Read more »

Confused person shrugging
Dividend Stocks

Better Buy: Fortis Stock or Hydro One Stock?

Let's do a compare and contrast of these two top utilities stocks right now, shall we?

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

Boost Your Passive Income: 2 Canadian High-Yielders at a Bargain

Nutrien (TSX:NTR) stock and another play that appear like fantastic dividend bargains in mid-November.

Read more »

Super sized rock trucks take a load of platinum rich rock into the crusher.
Metals and Mining Stocks

Invest $7,000 in This Dividend Stock for $672 in Passive Income

High yield can be an essential requirement when you need to start even a modestly sized passive income with a…

Read more »

telehealth stocks
Tech Stocks

Well Health Stock: Buy, Sell, or Hold?

Another record-breaking quarter and strong demand sets the stage for continued momentum for Well Health stock.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

TSX Stocks Soaring Higher With No Signs of Slowing

Three TSX stocks continue to beat the market and could soar higher in an improving investment landscape.

Read more »