Beyond all doubt, 2021 will be remembered as the year of cryptocurrency. The universe has become more cryptocurrency-friendly and metaverse as a result of this.
Let us take a quick look at the major talking points of 2021 in the world of blockchain and cryptocurrency.
NFTs were created with the intention of allowing each token to be identified by its own set of parameters. As unique identifiers, this sort of token can be coupled with virtual/digital attributes.
All designated properties can be openly sold with customizable values based on their ages, uniqueness, liquidity, and other factors using NFTs. Tokenization may be used to tokenize a wide range of valuables, including digital arts, gaming, music, and films.
Due to rising public interest, the NFTs business exploded in 2021 (sales volume surged by almost 7000 percent since January).
As of the 8th of December, the entire sales volume on the NFTs market has topped USD 12 billion, with over 13 million units sold.
In the Limelight
Memecoins: Meme coins are cryptocurrencies motivated by the Internet and social media memes or jokes.
They are primarily community-driven, and thanks to internet community approvals, they can quickly garner attention.
Dogecoin, Shiba Inu, Dogelon Mars, Samoyedcoin, and Akita Inu are some of the most prominent dog meme coins.
The frantic public benefit in cryptocurrency had resulted in a rapid rise and a market capitalization of over $45 billion by 2021.
Dogecoin (DOGE) and its rival Shiba Inu were the two most popular meme coins (SHIB). DOGE had increased almost 8000 percent in market capitalization since the beginning of the year on May 8, 2021.
Since January, its competitor, SHIB, had pumped more than 5000 percent in terms of token price movements.
According to messari.io, their entire market dominance was greater than 2% as of December 6, 2021.
Interoperability of blockchains
What will be the next big thing in blockchain? Bridges, without question. In 2021, the interoperability of heterogeneous blockchains to ease out cross-chain interactions fueled a surge in blockchain growth.
Aside from Ethereum, 2021 has seen the emergence of Solana, Avalanche, Terra, and Fantom, with their TVLs increasing by over 500% since January.
The growth of bridge ecosystems is expected to continue. Other well-known projects like BSC, Polygon, Arbitrum, and Optimism are likely to enter the ranks.
Transitioning from DeFi 1.0 to DeFi 2.0
DeFi 2.0 pledges to enhance customer experience, offer new finance technologies, and boost capital utilization, whilst DeFi 1.0 provided liquidity mining (Compound, Aave), lending power (MakerDAO), and AMMs (Uniswap, Sushiswap).
The systems in DeFi 2.0 push for a deeper connection between customers, and the whole ecosystem is envisaged erupting with more life and propelling energy, so that the liquid mining pools are always active enough to engage.
Furthermore, unlike DeFi 1.0, full governance and decision-making authority were entrusted to community members. Several intriguing DeFi 2.0 initiatives have been released as of December 2021.
Convex Finance, Abracadabra, Alchemix, Olympus, and Rari Capital are a few notable instances. In 2022, their TVLs are projected to take off.
Facebook changed its name to Meta on October 28, 2021, with the objective of bringing the Metaverse to life and assisting individuals in connecting, finding communities, and growing companies.
NFTs serve as portals to the Metaverse because they provide virtual identification. The Metaverse will resemble a cross between today’s online social encounters and those projected into the physical environment in three dimensions. Several metaverses focus on internal tokens that consumers can purchase, sell, swap, earn, or even invent.
Multiple metaverse-themed tokens have been issued as of 6 December, with Axie Infinity (AXS), Decentraland (MANA), The Sandbox (SAND), Enjin Coin (ENJ), and llluvium being the top five projects by market cap (ILV). Their overall market capitalization was approximately $28 billion.
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