Looking back at the crypto events in 2021

2021 is coming to an end, if there is a way to describe the performance of the cryptocurrency industry in the past 12 months, it will be huge growth.

The major cryptocurrencies have broken previous records, the adoption rate has continued to increase, new fields have continued to emerge, and new blockchain use cases have made major breakthroughs.

The latest version of Market Insight reviews the events covered in past questions and in-depth topics in Cointelegraph Research industry reports.

DeFi and altcoins

The two largest increases in 2021 are Solana (Sol) And Earth (Luna). SOL rose 9,500%, while LUNA rose 13,000%. A large amount of investment and the growth of the ecosystem have contributed to the huge benefits of these two tokens. One can also argue that The two are called potential “Ethereum killers” Participated in their large-scale gathering.

In the Decentralized Finance (DeFi) scenario, these two tokens rank among the top five in the total value lock (TVL). Solana ranks 5th with 11.45 billion USD, LUNA recently surpassed Binance Coin (Bitcoin) According to Defi Llama, it ranks second with $18.9 billion. In addition, the emerging ecosystems of Solana and Terra are worthy of in-depth study, which is why they are the subject of upcoming reports from Cointelegraph Research.

DeFi follows a similar growth trajectory to the broader cryptocurrency market in 2021.

There is no doubt that Ethereum’s competition has intensified. According to data from Defi Llama, its TVL share in January was 97%, but it has now fallen to 62.54%. The next stage of the industry’s development is being questioned in 2022, especially because the growth of DeFi this year is so great that the authorities have shifted from denying the industry to trying to find a way to deal with it.

DeFi market capitalization is still a small part of the overall cryptocurrency market capitalization, but it has experienced the same growth trajectory.Some people think that integration with traditional banking may be one of them The main focus of DeFi in 2022.

NFT

Although it has existed since 2014, non-fungible tokens (NFT) made a breakthrough in 2021. Most of the sales occurred in the past 12 months, with more than $14 billion in December.Digital art collections and digital collections account for 91% of these sales, which is one of the key figures disclose In this report.

The sales in the first half of the year were mainly due to individual artists joining the space with their own series and some high-profile sales, while the second half of the year brought more mainstream brands.

For example, Coca-Cola Sale of wearable bubble jacket skins in Decentraland, And visa Purchased its first NFTThe participation of these brands has allowed the NFT market to flourish. The report also revealed that the most profitable NFT collection in 2021 is “CryptoPunks”. Compared with other popular series of NFTs such as “CryptoKitties” and “Bored Ape Yacht Club”, “CryptoPunk” NFT provides a better historical average return on investment.