Footprint Analysis: Can 2021 Predict This Year’s Token Earnings? | Annual Report 2021

By | January 11, 2022

In 2021, dozens of promising projects in DeFi, NFT, and GameFi brought more tokens to market than anyone can follow. While most followed the price of BTC and ETH, we saw a few new tokens defying this trend for the first time, and while many tokens made astronomical gains, other projects were hacked to zero.

This article will review the biggest gains and the most painful losses.

Yahoo Finance: BTC vs. E-Mini S&P 500

BTC overview

The BTC price on January 1, 2021 it was approximately $ 29,000 and on December 31 it was $ 47,000, an increase of 58.6%. BTC’s price action is a snapshot of the blockchain in 2021, with prices reflecting the market’s confidence and expectations in the space. Even if you don’t know what DeFi is, you can get an idea of ​​the rapid growth of blockchain this year from the price of BTC.

Footprint Analysis – BTC Price

String-issued tokens

Ethereum, the leading blockchain ecosystem, has risen from $ 738 to $ 3,761.

Footprint Analysis – ETH Price

However, the high costs and congestion of the Ethereum network have led to the emergence of dozens of solutions to allow the blockchain to expand. After the summer of DeFi, many of these new chains saw the price of their tokens multiply.

  • BNB: Increased by 12x
  • AVAX: increased by 30x
  • MOON: Magnified by 129x
  • SOL: Increased by 112x
  • MATIC: Increased by 144x
Footprint analysis: tokens issued by strings

With the rapid development of high-performance public chains and EVM-compliant chains, DeFi projects are beginning to migrate to multiple chains. Cross-chain solutions have become urgent.

As the cross chain bridge that covers the largest number of public chains, $ ANY by AnySwap has grown 105x from $ 0.17 to $ 16.97 in 2021.

Footprint analysis – ANY price

Metaverse tokens

NFT and the Metaverse project began to garner headline attention in the second half of the year. Since most NFT projects do not issue tokens, we can focus on GameFi data.

  • $ AXS – A token issued by Axie Infinity, a gambling game to win, the price of which increased 178 times.
  • $ SAND: An ERC20 token for the blockchain game “The Sandbox”, which revolves around the virtual property game, grew 162 times.
  • $ COCOS and $ GALA are tokens issued by the GameFi service chain. People value their potential to become the future infrastructure of the metaverse, with $ GALA increasing more than 300x and $ COCOS increasing more than 8000x in 2021. Token prices fully reflect future expectations.
Footprint analysis: GameFi token price

Some chips got ruined

Despite record earnings, not everyone made a fortune. Blockchain is still a high-risk investment, as made clear by some tokens that went completely to zero.

Tokens that fell into vulnerability attacks

$ BUNNY: On May 20, PancakeBunny was attacked for a hit-and-run loan and a symbolic hit-and-run blockade. The event resulted in a total loss of 114,631 BNB and 697,245 BUNNY, or approximately $ 42 million in contracts at the then-price. The price of the BUNNY coin also fell from $ 232 to $ 11. The current price of BUNNY is $ 1.07.

$ CREAM: 2021 was a nightmare for Cream Finance, as the protocol was hacked five times with losses of around $ 200 million. In one attack after another, the price of CREAM gradually fell from a high of $ 370 to $ 37, a drop of around 90%.

Footprint Analysis – CREAM and BUNNY Price

Chips reset by bank runs

$ TITAN: Iron Finance is an algorithmic stablecoin project based on Polygon’s partial guarantee. Their troubles began on June 16, when a giant whale made a sell-off, which in turn sparked a market panic and eventually a user sell-off. Combined with the failure of the token minting mechanism, 27 trillion TITANs were minted, resulting in the price of TITAN to go straight to zero from a high of $ 64 in just 16 hours.

This event was a true DeFi bank run. With an extremely panicky market, the short-term surge in demand for withdrawals from depositors triggered a run that ultimately led to the collapse of the system.

Footprint Analysis – TITAN Price

A note on exclusions

Footprint analysis: top tokens by growth rates

In 2021, there was no shortage of tokens with extremely high growth rates, especially meme tokens.

The price of SHIB, for example, grew more than 3,000 times. However, such tokens lack application scenarios, so we do not include them in our guide.

In 2022, evaluate the potential of each public chain and focus on cross-chain services, which will likely become the main focus in blockchain development. At the same time, keep up with emerging fields; Above all, this industry is evolving rapidly.

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Date and author: January 11, 2022, Amanda

Data source: Footprint Analysis: 2021 Token Review

This article is part of our Year in Review series.

What is Footprint

Footprint Analytics is an all-in-one analytics platform for visualizing blockchain data and discovering insights. Clean and integrate data chain so that users of any level of experience can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag and drop interface, anyone can create their own custom charts in minutes. Discover blockchain data and invest smarter with Footprint.

Posted in: Token report, Tokens

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