The first quarter of the year witnessed significant momentum in the cryptocurrency market, with numerous digital assets delivering impressive returns. While Bitcoin remains the most recognized name, its performance was overshadowed by several lesser-known tokens.
Top Performers in the Crypto Space
BitTorrent Token (BTT) Leads the Rally
The standout performer this year is the BitTorrent Token (BTT). Originally developed by Bram Cohen in 2001, BitTorrent was a widely-used peer-to-peer file-sharing protocol. After being acquired by Justin Sun in 2018, the platform ventured into the blockchain space.
BTT was launched as a TRC-10 token on the TRON network, aiming to incentivize faster download speeds and improved resource sharing. Its use cases include content expansion, rewards for creators, and crowdfunding new projects.
Since its debut in early 2019 at approximately $0.000343, BTT’s price surged to around $0.0082 by mid-April this year—marking a growth of over 25 times in just over two years.
Terra (LUNA) Follows Closely
Another notable gainer is Terra’s native token, LUNA. Terra is a blockchain platform focused on price-stable digital currencies designed for real-world payments. Founded by South Korean entrepreneur Daniel Shin, it supports a range of stablecoins pegged to various fiat currencies.
LUNA is used for staking, governance, and transaction fees within the Terra ecosystem. Its value skyrocketed from about $0.655 at the beginning of the year to nearly $14.91 by April 12—an increase of more than 2,000%.
Key products like CHAI, a payment application built on Terra, have significantly boosted adoption and transaction volumes.
Bitcoin’s Moderate Growth in Comparison
Despite Bitcoin’s impressive rally of over 100% in Q1 2021—reaching an all-time high above $60,000—it was only the third-best performer among major cryptocurrencies. This highlights how emerging altcoins sometimes outpace established market leaders during bullish cycles.
Global Central Banks Embrace Digital Currencies
The rise of cryptocurrencies isn’t limited to the private sector. Central banks worldwide are actively exploring or developing their own digital currencies (CBDCs).
China’s Digital Yuan Pilot Expands
The People’s Bank of China began researching digital currency in 2014 and officially launched pilot programs for the Digital Currency Electronic Payment (DCEP) system in 2019. Trials started in cities like Shenzhen, Suzhou, and Chengdu, later expanding to Shanghai, Hainan, and others.
The digital yuan aims to enhance payment efficiency and support financial inclusion.
Other Nations Join the CBDC Race
Thailand’s central bank announced a timeline for testing a retail digital currency in 2021–2022. Similarly, the Bank of Japan initiated a one-year proof-of-concept trial for a digital yen in April 2021.
In the United States, Federal Reserve Chair Jerome Powell emphasized the importance of understanding the technological and economic implications of CBDCs but indicated no immediate plans for launch.
Wall Street Warms Up to Crypto
Major financial institutions are increasingly integrating cryptocurrency services. Goldman Sachs announced plans to offer Bitcoin and digital asset investment tools to clients in Q2 2021. The firm also filed for an ETF-linked note related to cryptocurrency performance.
Morgan Stanley became the first large U.S. bank to provide access to Bitcoin funds for wealthy clients, signaling growing institutional acceptance.
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Frequently Asked Questions
What is a stablecoin?
A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the U.S. dollar or gold. Examples include TerraUSD (UST) and Tether (USDT).
How do central bank digital currencies (CBDCs) work?
CBDCs are digital forms of a country’s fiat currency, issued and regulated by the central bank. They aim to combine the efficiency of digital transactions with the stability of traditional money.
Why did BTT and LUNA perform so well?
BTT benefits from its utility in decentralized file-sharing, while LUNA gains value from its role in Terra’s stablecoin ecosystem, which is increasingly adopted for payments and DeFi applications.
Is Bitcoin still a good investment?
Bitcoin remains a popular store of value and hedge against inflation, but its volatility requires careful risk assessment. Diversifying with other cryptocurrencies may be beneficial.
What are the risks of investing in altcoins?
Altcoins often experience higher volatility and lower liquidity than Bitcoin. Investors should research project fundamentals, market trends, and regulatory developments.
How can I start investing in cryptocurrencies?
You can begin by using reputable cryptocurrency exchanges, wallets, and educational resources. Always start with small amounts and consider professional advice.