What crypto investors were buying in 2021

Despite the volatility, crypto investors were rewarded with some astonishing returns in 2021.
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It should come as no surprise that the most popular cryptos on OVEX’s Over-The-Counter (OTC) desk in 2021 were the ‘blue chips’ such as Bitcoin (BTC) and Ether (ETH), but there were a few surprises, such as Dogecoin (DOGE) and Shiba Inu (SHIB).

It was another record year for the OVEX OTC desk, says OVEX CEO Jon Ovadia, driven by a further surge in crypto adoption. “A few years ago, there was really only one cryptocurrency in the conversation and that was Bitcoin. But today we see a far greater demand from clients for less well-known cryptocurrencies, and this suggests a far greater level of sophistication among crypto investors in 2021.”

Click here to start buying & selling cryptocurrency on OVEX

Eye-popping returns of 1 950% for Binance Coin (BNB) and 11 212% for Solana (SOL) over the last 12 months have won these cryptocurrencies a huge fanbase among South African investors claiming a stake in this fast-evolving financial universe.

Returns like these demonstrate the importance of diversification of one’s crypto portfolio, adds Ovadia. “Understanding the risks of crypto investment are important, and one should not over-invest in these highly volatile instruments, but it has been proven that diversification is vital to reducing volatility.”

One of the advantages of trading cryptos via OVEX’s OTC desk is the absence of trading fees. Even those new to cryptos will have little trouble negotiating the OVEX ‘Request for Quote’ (RFQ) page, where you can choose from more than 50 cryptos and stablecoins to buy and sell.

The table below shows the most popular cryptos on the OVEX exchanges and their 12-month returns. “It has been another great year for cryptos and it’s notable that none of the most popular cryptos recorded a loss. In fact, we’ve been spoiled once again with returns running into hundreds and even thousands of percent,” says Ovadia. “Needless to say, these kinds of returns come with some risk, and there is no guarantee they will continue, but I think it is safe to assume that we are at the beginning of a major revolution that will upend traditional financial services.”

12-month returns for the 10 most popular cryptocurrencies on OVEX

Bitcoin (BTC) 161%
Ethereum (ETH) 639%
Binance Coin (BNB) 1 950%
Solana (SOL) 11 212%
Cardano (ADA) 935%
XRP (XRP) 29%
Dogecoin (DOGE) 1 669%
Shiba Inu (SHIB) 3 500%
FTX Token (FTT) 869%
Litecoin (LTC) 105%

Four of the most popular cryptocurrencies – ETH, SOL, BNB and Cardano (ADA) – are fighting it out for leadership of the emerging decentralised finance (DeFi) space, where financial products and services are being offered outside the traditional financial services sector. Of these, SOL has emerged as the dark horse, with a 12-month return of more than 11 000%.

The winner in this race will have to be able to handle massive volumes of transactions, and SOL is thus far a clear winner in this regard. While the Bitcoin blockchain can handle about seven transactions a second, Ethereum (ETH) can handle 30 and Solana more than 65 000. By way of comparison, Visa card is reputed to be able to handle 24 000 a second, but these transactions only settle several days afterwards.

Dogecoin (DOGE) and Shiba Inu are ‘meme’ coins that were created more as fun projects than as offering any kind of utility – as is the case with the cryptos built to service the DeFi sector. DOGE received a helping hand from Elon Musk, who tweeted his support for the coin, saying it was the people’s crypto because those who supported it – including a large number of Tesla employees – were neither financial experts nor Silicon Valley technologists. Musk also tweeted pictures of his Shiba Inu puppy (Shiba Inu is a type of dog), and the price of SHIB went up, though it appears Musk does not own any. He is a strong backer of BTC, and his company Tesla acquired 42 000 BTC (now worth $2 billion), at a cost of about $1.3 billion.

OVEX has the largest range of stablecoins in SA

Three of the largest cryptos by market cap are stablecoins backed 1:1 by the US dollar. They are Tether (USDT), USD Coin (USDC) and Binance USD (BUSD). Stablecoins have become a large part of the crypto market, and are used by investors and traders to park profits from crypto trading in more stable assets.

OVEX has the largest range of stablecoins in SA, including Tether, USD Coin, True USD (TUSD) as well as stablecoins backed by the Australian dollar, Euro, Sterling, Swedish Krona and Swiss Franc – to name a few.

More than 50 cryptos to choose from

OVEX has more than 50 cryptos that can be purchased on its RFQ (Request for Quote) page. The selection includes the larger cryptos such as Bitcoin, Ether and Solana as well as some smaller ones that have outpaced the broader market in the course of 2021.

Click here to start buying & selling cryptocurrency on OVEX

Brought to you by OVEX.

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