December 26, 2021 / Cryptocurrency

NFT, DeFi And Others: The Main Results Of 2021 For The Crypto Industry

altcoins

The Block media has summed up the results of the outgoing year in the cryptoindustry. It became very successful for her – most of the key indicators renewed their historical highs. First of all, this is the market capitalization – in the first half of November it was approaching the $ 3 trillion mark. At the same time, indicators of $ 1 and $ 2 trillion were also achieved in 2021 – in January and May, respectively.

  • Bitcoin retained its leadership in the market, while its value doubled over the year. In early November, the main world cryptocurrency set a historical record – the price of one coin reached $ 69 thousand.Its capitalization increased by $ 545 billion during the year: bitcoin grew 2.5% slower than gold, but 26% and 31% faster than the S & P500 and Nasdaq indices.
  • The rest of the world’s TOP-10 cryptocurrencies in terms of market capitalization (excluding stablecoins) also increased in value during the year. Moreover, they all grew more actively than bitcoin.
  • Stablecoins are gaining increasing recognition from institutional investors, thanks to which their total supply in the outgoing year has grown from $ 29 to more than $ 140 billion. The annual volume of transactions with them exceeded $ 5 trillion, which is almost four times more than at the end of 2020.

  • In May, the volume of cryptocurrency trading on exchanges reached an all-time high, exceeding $ 2.2 trillion. Towards the end of the year, they declined again, amounting to $ 1.4 trillion in November. Binance remains the most popular cryptocurrency exchange in the world – it accounts for 66% of the total trading volume.

Investments

  • The interest of venture capitalists in the cryptocurrency market in 2021 was also at the highest level in history. The volume of investments since the beginning of the year has exceeded the total for the previous six years, amounting to $ 14.4 billion.If we take the data for the period from December 2020 to November 2021, this amount will grow to $ 24.7 billion.
  • In 2021, there were already at least 65 unicorn companies in the crypto sector. Over the past two years, this number has grown fivefold.

  • 2021 will be remembered as NFT boom period. The market for non-fungible tokens, which provide content creators with new ways to monetize their work, ranked third in the entire cryptocurrency market in terms of attracted investments – it amounted to $ 5 billion.The total number of active wallets on NFT marketplaces has grown more than six times since the beginning of the year.
  • The number of mergers and acquisitions (M&A) in the cryptoindustry also hit a record – 197 transactions totaling more than $ 6 billion were recorded.For comparison: in 2020, 85 transactions worth about $ 730 million were made. BitGo for $ 1.2 billion became the largest in the history of the industry.

DeFi

  • The outgoing year was marked by the rapid growth of the decentralized finance (DeFi) market. The value of the funds blocked on it has grown from $ 16 to more than $ 100 billion.
  • Most of these funds came from credit services and decentralized exchanges. At the same time, the landscape of the decentralized finance market has become more diversified. In 2021, many new DeFi categories have emerged, such as crypto derivatives, liquid bets, and algorithmic stablecoins.
  • The annual growth in trading volume on decentralized exchanges (DEX) in November 2021 was 522%. It reached its maximum in May 2021 – by the end of the month, it reached $ 163 billion.

  • At the same time, the number of funds stolen as a result of attacks on DeFi projects has increased. It amounted to more than $ 600 million, with almost a third of this coming from projects powered by Binance Smart Chain (BSC).

NFT

  • Yet 2021 will be associated primarily with NFT. By mid-November, trading volume amounted to $ 8.8 billion, of which 60% came from art and collectibles, and the remaining 40% from gaming NFTs.

  • The activity around the NFT peaked in the third week of August, when in just seven days the trading volume exceeded $ 1 billion.
    Axie Infinity blockchain NFT game dominated the gaming sector in terms of NFT sales. Moreover, both primary and secondary – according to this indicator, it is almost twice ahead of its closest competitor – CryptoPunks project.

Regulation

  • In 2021, the first country to make bitcoin legal tender was El Salvador. The corresponding law was signed by the President of the Latin American Republic Nayib Bukele. By legalizing BTC, he stated that this is being done to increase the accessibility of the country’s population to financial instruments.
  • China has made significant progress in launching the digital yuan. The country’s authorities have steadily increased the number of regions in the country participating in the pilot project, and also connected the digital currency to the Multiple CBDC Bridge system, which is testing cross-border transfers in China, Singapore, Hong Kong and Thailand.

  • The United States became the world’s main mining center after the Chinese authorities effectively banned mining on their territory. The American pool Foundry USA displaced the Chinese AntPool from the first place in terms of hash rate towards the end of the year.
    The cryptocurrency market is in the spotlight of regulators around the world. While some of them are looking for ways to include cryptocurrency in the existing regulatory framework, some have moved to outright banning activities related to it. This is most actively pursued in China, whose authorities, following the mining ban, removed any transactions with cryptocurrency from the legal field.
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