2021 was an exciting year for blockchain. The total market capitalization of blockchain projects exceeded $2 trillion and the price of Bitcoin hit a record high of $67,674.
Meanwhile, the price of Ethereum increased fivefold after the London update, while blockchain investment also flourished, with cumulative funding for the year exceeding $30 billion.
We witnessed the explosion of DeFi 1.0, followed by the burgeoning multi-chain ecosystem and the rapid expansion of the stablecoin market.
The biggest trends of 2021
one. DeFi 2.0
The TVL of DeFi 2.0 projects it skyrocketed from zero to $30 billion in 2021 in eight months.
Composable DeFi Legos have become some of the key features of blockchain applications, referring to components that can be combined and integrated across different platforms and applications.
DeFi 1.0 created liquidity, LP tokens, and decentralized stablecoins as the first generation of DeFi Legos. 2021 saw the rise of DeFi 2.0, which turned liquidity into a new Lego wallet for DeFi.
two. Cross the bridge
The TVL of ETH cross bridge projects it surpassed $25 billion in 2021.
The burgeoning multi-chain ecosystem has made the flow of assets across different chains an immediate necessity.
Interchain bridging protocols are bridges for linking assets across chains, allowing assets to interoperate and transfer across chains efficiently.
(Decentralized Autonomous Organizations) went from cryptocurrency jargon to an actual functional part of the blockchain industry in 2021, with Uniswap DAO being the most influential.
ConstitutionDAO promoted the DAO concept to the masses, while other projects brought DAOs into the financial, musical, and cultural spheres.
Monthly trading of NFT projects volume it peaked at $5.5 billion in August and reached a total of $21.5 billion by the end of the year.
NFTs mark ownership of digital assets in a decentralized way and have been instrumental in getting more people interested in blockchain technology.
From art collectibles to music and other areas like the metaverse, NFTs will change the way we experience the web, buy and sell art, consume branded products, and even create and experience music.
Incorporating a new genre of play-to-win games, the GameFi sector combines gaming, finance, and NFT.
Axie Infinity’s highest single-day revenue in July even surpassed the highest single-day revenue of the world’s highest-grossing game, Glory of Kings. Facebook changed its name to Meta, further fueling the rise of the metaverse.
Trends from 2021 that are expected to continue in 2022
- More projects in 2022 will offer universal infrastructures for blockchain interoperability
- Cross-chain DeFi
- Metaverse, Web 3.0 (blockchain network infrastructure), NFT and GameFi
- Web 3.0 infrastructure protocols are emerging and thriving, for example compute, storage, bandwidth, and indexing.
- NFTs with more utility, accessing super exclusive communities
- music nfts
- Larger brands and companies stepping up their experimentation with NFTs.
- The biggest game companies moving to GameFi
- Lending Platforms Begin Accepting Metaverse Lands As Collateral For Loans
- NFT + DAO, GameFi + DAO
- Social tokens, self-sovereign identity, and decentralized identity that are established in the metaverse
New trends expected in 2022
- The development and deployment of more Layer 2 solutions will make Ethereum cheaper and faster.
- Advances in the financial industry
- More new apps added with DeFi
- Socialization of smart contracts
- Transformation of tangible assets into digital assets, written agreements into chain contracts
- crypto payment
- Increased adoption by institutions and businesses
- The use of cryptocurrencies for payments is expected to gain more momentum in 2022
- Stablecoin Regulation
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Date and author: January 14, 2022, [email protected]
Data source: footprint analysis
This article is part of our Year in Review series.
Featuring a roundup of the biggest daily stories in the world of crypto, DeFi, NFT, and more.
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