The most profitable cryptocurrencies at the end of 2020

CONTENT

  • BTC rate updated its historical maximum in December 2020.

  • The AAVE coin showed the maximum growth at the end of the year.

  • BAND and OCEAN made bearish breakout from their price structures.

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2020 has been a hugely successful year for a host of cryptocurrencies, from bitcoin, which hit all-time highs in December, to lesser-known altcoins. Some of them hit record highs back in August.

An interesting year for cryptocurrencies

In 2020, cryptocurrency traders had no time to get bored. At the beginning of the year, cryptocurrencies were generally pretty stable, although they tried to grow a little. This supported Bitcoin’s bullish bias – BTC made several attempts to absorb the 2019 high of $ 13,880.

However, this state of affairs did not last long. Everything collapsed with the arrival of March. The pandemic of the new coronavirus hit the global markets hard, including the cryptocurrency.

In the chart below, you can see the price dynamics shown in March S&P 500 (orange), BTC (green) and oil (blue). These assets collapsed by 37%, 54% and 57%, respectively.

BTC chart. Source: TradingView

On March 12, the bitcoin rate lost 39% of its value in just a day. This became the largest intraday drawdown in the history of cryptocurrency. The next day, BTC hit an annual low of $ 3,850.

This value has remained the minimum for Bitcoin for 2020. After that, the currency staged a dizzying bullish rally, moving several times in December to historic highs. At the time of this writing, BTC is trading at around $ 19,200, up 143% from this year’s opening levels (1 Bitcoin was worth $ 7,200 on January 1).

The forecast for the crypto market for 2021 is now confidently and optimistic – both from a technical and a fundamental point of view. Institutional investors’ interest in digital assets has grown significantly, as evidenced by the policies of many companies, including the Grayscale Investment Trust..

Growth leaders

In this article, we would like to list five coins that grew the most in 2020. We will only look at the coins that are in the top 100 by market capitalization, and round up their growth rates to whole values..

So, the honorable top five in terms of growth rate for this year included: 

  • AAVE (50x)
  • KSM (39x)
  • BAND (27x)
  • Celsius (16x)
  • OCEAN (10x)

By comparison, a similar result for BTC is around 2.5x at the time of writing. It is also worth noting that statistics were collected from the moment when the coin was included in the listing of any major crypto-exchange. For this reason, tokens such as YFI and YFII were not included in the rating..

AAVE (AAVE)

In 2020, AAVE has achieved the most impressive performance in the crypto space, significantly overtaking other coins.

On January 1, 2020, AAVE traded at a low of $ 1.41. At the time of writing, the coin was already worth $ 74.3, which is equivalent to a 5,000% increase in a year. At the same time, in December, the coin managed to renew its historical maximum by $ 99.53, breaking its own previous record set in 2018 at $ 48.5.

To get a better idea of ​​the scale of this rally, let’s say you invested $ 100 in AAVE on January 1st. By now you would have had $ 5,000.

The price of AAVE grew along a parabola, which is usually not a stable trend from a long-term perspective. Nevertheless, the result over the past year was still amazing. It is also curious that the parabola line (green in the chart) is still unbreakable at the time of writing..

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However, this situation has its own fly in the ointment. If at the beginning of this rally the price growth occurred against the background of impressive trading volumes, now they have extremely scarce. This may indicate a weakening trend. In addition, a likely double top can be seen on the chart (from Aug 25 to the next all-time high). This is also considered a bearish signal. However, as long as the parabola remains unbroken, AAVE will still have chances of a confident start to the new year..

Note: We have used a logarithmic chart to better visualize large-scale price fluctuations. All subsequent charts will also be presented in the same way..

AAVE chart. Source: TradingView

Kusama (KSM)

Although this token, as the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More lagged behind the growth rate of AAVE, he also has something to brag about.

On January 1, the KSM rate began the year at $ 1.15, and is now trading at $ 45.82, having strengthened by 3850%. The all-time high for KSM was first reached on September 3, and then on December 2, the market moved it slightly higher, by $ 65.2. However, after that the rate of the coin dipped to $ 45.82, where it is now.

Unlike AAVE, KSM grew not along a parabola, but along a straight trend line. This is a sign of a more stable price growth and promises it the likelihood of further growth..

However, there is also a double top on the chart here, very similar to the similar pattern on the AAVE chart. This can also be a sign of a trend reversal..

The most profitable cryptocurrencies at the end of 2020

KSM schedule. Source: TradingView

Band Protocol (BAND)

Unlike the previous two coins, BAND has already made a bearish breakout of the price structure. This is equally true for both the parabola (green) and the upward support line (black). This is a bearish sign and if BAND continues to decline it could bode badly for other coins that have similarly completed their upward phases..

Before the bearish breakout, the BAND rate renewed its all-time high at $ 17.78 on August 10, but after that it started losing ground. From the level of January 1, $ 0.218, the price strengthened at the moment by 8,500%. If it had held on to the achieved heights, it could have surpassed the AAVE. However, the subsequent bearish break deprived BAND of this advantage..

At the time of this writing, the coin is trading in the $ 6.03 region, with a “mere” increase of 2.740%. The same breakthrough has significantly darkened BAND’s prospects compared to AAVE and KSM..

BAND chart. Source: TradingView

Celsius (CEL)

The CEL course met on January 1, 2020, around the $ 0.138 mark. Having survived the March collapse along with everyone else, the coin began to grow. This growth continues to this day, which allowed the market to record an all-time high of $ 2.72 on November 30.

The price dynamics is very similar to the situation with KSM. The difference is that the CEL, after reaching a record high, has not yet declined and has not tested the support line for strength. It just has to make a significant correction, and this fact distinguishes CEL from all the coins we have considered..

Thus, while the relatively smooth price action is a good sign, the lack of a proper correction is cause for concern. A decline to the upward support line would mean a drawdown of the coin by about 30%.

CELS chart. Source: TradingView

Ocean Protocol (OCEAN)

Finally, it closes our top 5 OCEAN coin. It traded at $ 0.034 on January 1, then began to rally and eventually reached an all-time high of $ 0.75 on August 18. However, the market failed to gain a foothold at the achieved levels, and at the time of writing the OCEAN rate was $ 0.38. Compared to the price as of January 1, this is equivalent to a 987% gain.

As with BAND, the OCEAN chart shows a breakout of the bullish price structure, namely the break of the upward support line. In addition, this happened after the coin tried to form a new all-time high, but was unable to do so..

Both of these facts indicate weakening, which could mean the end of the OCEAN growth phase and promise a significant correction for the price..

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OCEAN chart. Source: TradingView

Conclusion

The crypto market is widely known for its large-scale price swings. On the one hand, a number of enthusiasts find this property of digital currencies extremely attractive and helps to generate huge profits due to aggressive price increases..

On the other hand, this makes the cryptoindustry an object of criticism from those who consider such high volatility to be an excessive risk factor. This thesis is indirectly confirmed by the need to use logarithmic charts to visualize price movements..

Curiously, the coins, which turned out to be the leaders of growth, reached their annual highs in August-September, after which they pulled back from them. However, some coins managed to renew the highs in December (KSM, AAVE, CELS). If they remain within the current price patterns, then their further growth cannot be ruled out..

In addition, it should be remembered that after such an aggressive growth, as a rule, a downward correction always occurs. This rule has already been confirmed by the BAND coin. Perhaps next in line is OCEAN. Particular caution should be exercised in cases where the rally took place along a parabola (for example, AAVE), because as a result of such a growth, the market does not have time to form support. This could cause the price to roll back to much lower levels..

Disclaimer: Trading cryptocurrencies carries a high level of risk and is not suitable for all investors. The opinion expressed in this forecast is the personal opinion of the author and does not necessarily reflect the opinion of the editorial staff of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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The most profitable cryptocurrencies at the end of 2020
The most profitable cryptocurrencies at the end of 2020
The most profitable cryptocurrencies at the end of 2020

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