Crypto occasions of 2021 on reflection


The yr 2021 is coming to an in depth, and if there’s one technique to describe how the cryptocurrency business fared up to now 12 months, it could be momentous progress. 

Main cryptocurrencies shattered earlier data, adoption grew, new sectors sprouted and novel blockchain use circumstances made important breakthroughs.

The Market Perception’s newest version recollects the occasions lined in previous points in addition to deep-dive matters in Cointelegraph Analysis’s business experiences.

DeFi and Altcoins

Two of the highest gainers of 2021 had been Solana (SOL) and Terra (LUNA). SOL gained 9,500%, whereas LUNA gained 13,000%. Vital investments and ecosystem progress catalyzed the immense positive aspects for the 2 tokens. One might additionally argue that the two being billed as potential “Ethereum killers” had an element in contributing to their large rallies.

Within the decentralized finance (DeFi) scene, the 2 tokens sit among the many high 5 in complete worth locked (TVL). Solana is at No. 5 with $11.45 billion, and LUNA has just lately surpassed Binance Coin (BNB) for the No. 2 spot with $18.9 billion, based on Defi Llama. Furthermore, the rising ecosystems of Solana and Terra deserve a deeper look, which is why they’re the topic of Cointelegraph Analysis’s upcoming experiences.

DeFi adopted an analogous progress trajectory because the broader crypto market in 2021. 

Competitors has undoubtedly elevated for Ethereum. Its TVL share was 97% in January however is presently all the way down to 62.54%, per Defi Llama. The following part of improvement for the sector comes into query in 2022, particularly because the progress of DeFi this yr has been so substantial that authorities have switched from denying the business to grappling with methods to cope with it. 

The DeFi market capitalization stays a small fraction of the general cryptocurrency market cap, however it underwent the identical progress trajectory. Some consider that integration with legacy banking may very well be considered one of the principle focuses for DeFi in 2022.

NFTs

Nonfungible tokens, or NFTs, discovered their breakout yr in 2021 regardless of current since 2014. The majority of gross sales got here up to now 12 months, surpassing $14 billion in December. Digital artwork collections and digital collectibles dominate 91% of those gross sales volumes, which is among the key information revealed on this report.

The gross sales within the first half of the yr had been pushed primarily by particular person artists becoming a member of the house with their respective collections and a few high-profile gross sales, whereas the second half introduced in additional mainstream manufacturers.

As an illustration, Coca-Cola auctioned a wearable bubble jacket pores and skin in Decentraland, and Visa bought its first NFT. Such participation from these manufacturers enabled the NFT market to return into full bloom. The report additionally revealed that probably the most worthwhile NFT assortment in 2021 was “CryptoPunks.” A “CryptoPunk” NFT gives a greater all-time common return on funding in comparison with NFTs on different well-liked collections, akin to “CryptoKitties” and “Bored Ape Yacht Membership.”