2021 has come to an end, and what a year it has been!
2021 has been an extremely eventful year, be it for the general public or blockchain and cryptocurrency. Ranging from the rising popularity of Metaverse and blockchain to achieving the highest price of Bitcoin and shifting focus on new crypto tokens, there have been multiple events in the crypto world that have caught our attention.
So, with this article, we are sharing all the big things that happened in the crypto world in 2021, and all of them are meant to shape up the future of cryptocurrency in the upcoming years!
Rise Of Bitcoin
Back in September 2020, Bitcoin was identified as the official form of cryptocurrency for the first time in history. However, a year later, in 2021, El Salvador identified Bitcoin as one of the legalized currencies of the country. For this reason, cryptocurrency regulations became the ultimate buzzing topic in different countries, including the United States.
For instance, China blocked or conducted a clampdown on cryptocurrencies while the taxation rules were launched in the U.S.
In addition, the new COVID-19 variant and uncertainties caused by inflation are some of the other issues associated with the Bitcoin world. If you are interested in bitcoin trading check why you should start trading bitcoin today here.
Rising Popularity Of The Meme Coins
In addition to the record high price of Bitcoin, meme coins are another popular thing that happened in the crypto world. Some various factors and moments helped progress the growth of Decentralized Finance, DeFi.
For those who don’t know, DeFi is the ecosystem or environment of financial applications built or developed on blockchain networks. Ranging from SHIB to DOGE, these crypto coins gained immense popularity in March, particularly when Elon Musk supported these coins.
It wouldn’t be wrong to say that his tweets kept hyping up these meme coins and sparked immense interest all around the globe.
Higher Interest In NFTs
The NFTs became more mainstream when Beeple, a well-known digital artist, sold the first NFT back in March 2021. When it comes down to the sale, it was the first digital and NFT-based artwork sold on a well-known luxury and art business, Christie’s (it’s a luxury business that was first established in 1766).
In addition, it was the first time in history that the art auction house accepted cryptocurrency in the form of payment, making it the first foray of cryptocurrency.
Till date, the global NFT market has hit the mark of $22 billion, which signaled interest in this specific cryptocurrency class.
Increased DeFi Growth
During the year 2021, more and more institutions and retail investors started acknowledging DeFi or decentralized finance as a viable investment opportunity. For this reason, the total value locked of the DeFi increased by 300%.
For those who don’t know, TVL (total value locked) is one of the most critical factors utilized for assessing the growth of decentralized finance. In addition, it is used for reflecting the fund value that users have locked into the DeFi projects.
Currently, the TVL has already surpassed $60 billion and has peaked at $86 billion in Mid-May. Having said that, this evident growth of the decentralized finance market shows the huge potential for decentralized platforms and digital currencies.
Emergence Of Fan Tokens
With the popularity of digital ownership and NFTs, fan tokens became the ultimate trend. To illustrate, fan tokens are defined as a form of cryptocurrency that provides holders with the access to multiple fan-related membership features and perks.
It wouldn’t be wrong to say that fan tokens are quite similar to NFTs, but they are interchangeable, accrediting to the fungible nature.
The cryptocurrencies allow the enterprises, sports clubs, and celebrities to launch the fan tokens, so the fans can purchase them as investments of collectible merchandise. In fact, do you know football clubs managed to sell over $300 million worth of tokens in 2021?
The Bottom Line
To summarize, it’s pretty evident that 2021 was the ultimate year of development for the crypto world, and there were various establishments, ranging from regulations to technology and increased adoption. However, the users still need to be careful about the scams because the cyber-threats are also rising.