6 Cryptocurrency Market Milestones Of 2021
From the increasing popularity of NFTs to Facebook’s announcement of Meta, crypto has come a long way since 1st January 2021.
As we enter 2022 together, let’s take a look at 6 impressive milestones the crypto market has achieved in 2021.
We also take a look at how world events are shaping the future of crypto in 2022.
For better or for worse, 2021 has been an eventful year for crypto and blockchain. From achieving the highest BTC price in history to the shifting interest of various tokens and sectors, here are the groundbreaking events of crypto in 2021 that are shaping the future of crypto in 2022.
Rise Of BTC
In September 2020, BTC was recognized as an official form of currency for the first time in history. A year later, El Salvador established $BTC as one of the country’s currencies. In the same year, crypto regulation became a hot topic. We witnessed China’s clampdown on cryptocurrencies, the arrival of US taxation rules, uncertainties brought about by inflation, the new Omicron variant and other forces that affected Wall Street’s financial markets. In November 2021, BTC's price hit a record high of more than $68k, an impressive 138% increase from its price on 1st January 2021.
Increasing Popularity Of Meme Coins
Apart from BTC’s ATH in November 2021, other key moments helped spur the growth of DeFi. DeFi, or Decentralized Finance, is the ecosystem of financial applications built on blockchain networks. Meme coins’ (DOGE, SHIB) popularity increased in March, contributed by Elon Musk’s declaration of support. As a prominent figure outside of the crypto world, Musk and his tweets have continued to hype up meme coins and sparked the world’s interest in these coins.
Exploding Interest In NFTs
NFTs went mainstream when digital artist Beeple sold his NFT in March 2021. The sale was the first fully-digital NFT-based artwork sold on Christie’s, a leading art and luxury business established in 1766. That was also the first time the art auction house accepted cryptocurrency in the form of ether as payment, marking its first foray into crypto. To date, the global market for NFTs has reached $22B, signaling marked interest in this class of cryptocurrencies.
Growth Of DeFi
Through the course of 2021, more retail investors and institutions are beginning to acknowledge DeFi as an investment opportunity. In 2021, DeFi’s Total Value Locked (TVL) surged by 300% year-to-date. TVL is one of the most important factors used to assess the overall growth rate of DeFi. It reflects the value of funds that users have collectively locked into DeFi projects. The current TVL has exceeded $60B, peaking in mid-May at $86B. The exponential growth of the DeFi market, represented by the TVL milestone, reflects the large potential of digital currencies and decentralized platforms.
Birth Of Fan Tokens
With the rise of NFTs and digital ownership came the birth of fan tokens. Fan tokens are a form of cryptocurrency that give holders access to a variety of fan-related membership perks. While they are similar to NFTs, they are fungible and therefore interchangeable. Cryptocurrencies allow sports clubs, celebrities and enterprises to launch their own fan tokens for fans to purchase them as collectible merchandise or investments. In 2021, football clubs have sold more than $300M worth of fan tokens (PORTO, LAZIO, SANTOS, CITY). Fan tokens help to build identity and enrich communities, allowing fans to support their favorite teams and brands while being rewarded for their loyalty.
Rise Of The Metaverse
Undoubtedly, Facebook’s rebranding move to “Meta” and other big players’ entrance to all-things digital is helping drive the adoption of the metaverse. Coupled with NFT games like Axie Infinity (AXS) and MOBOX (MBOX) also gaining popularity in 2021, the metaverse has become a hot topic for people around the world. The metaverse allows users to experience virtual reality with the right mechanics to ensure a functional and digital internal economy, making the future of gaming and social media more immersive and exciting. With its potential to bridge the digital and physical worlds, the metaverse will also continue to pique the interest of people everywhere as it continues to develop in 2022. The rise of the metaverse will also bring us closer to the internet of the future, Web 3.0, which is an evolved state of the world wide web boasting a blockchain-powered decentralized ecosystem for anyone to interact, create, socialize and more. If the crypto space as a whole continues working in the direction of Web 3.0, we may witness the digital shift to the internet of the future unfold this year.
2021 has been an exciting year of developments in different aspects such as regulation, adoption and technology. Despite these groundbreaking changes in crypto this year, however, users should always be cautious of scams and DYOR before making crypto purchases. To safely kickstart your journey in crypto, consider using a DCA strategy to accumulate crypto with the Recurring Buy feature. Stay tuned to this page for more developments in the space in 2022!
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