Anyway, 2021 was an eventful year for cryptocurrency and blockchain. From the maximum BTC price to the interest in various tokens and sectors, these essential events in 2021 are shaping the future of cryptocurrency in 2022.
Main Takeaway
- From the growing popularity of NFT to the Facebook rebranding to Meta. A lot of interesting things have happened in the world of cryptocurrencies since 1st January 1 2021.
- We propose to start 2022 with a discussion of six impressive events that took place in the cryptocurrency market in 2021.
- We will also tell you how world events will affect the future of cryptocurrency in 2022.
Rise of Bitcoin
In September 2020, BTC was recognized as the official form of currency for the first time in history. A year later, El Salvador established $BTC as one of the state currencies. In the same year, cryptocurrency regulation became a hot topic.
We witnessed Chinas clampdown on cryptocurrencies, the emergence of taxation rules in the United States, uncertainty caused by inflation, the new Omicron variant and other factors that have affected the Wall Street.
In November 2021, the BTC price reached a record high of more than $68 thousand and demonstrating an impressive 138% increase from its price on 1st January 2021.
Growing Popularity of Meme Tokens
The all-time peak of BTC in November 2021 is not the only important event. Several important events also spurred the grow of DeFi. DeFi, or decentralized finance, is an ecosystem of financial applications using blockchain. In March, meme coins (DOGE, SHIB) became much more popular thanks to Elon Musk's announcement of their support. As a well-known figure outside of the crypto world, Musk and his tweets have fueled the popularity of meme tokens and aroused great interest in them around the world.
Explosive Interest in NFT
NFT became mainstream when digital artist Beeple sold his token in March 2021. It was the first sale of a fully digital NFT-based artwork at Christie's, the leading auction house for art and luxury goods, founded in 1766. That was also the first time when the art auction house accepted cryptocurrency in the form of ETH as payment. The global NFT market has reached $22 billion today, indicating marked interest in this class of crypto assets.
Growth of DeFi
During 2021, more retail investors and institutions saw DeFi as an investment opportunity.
In 2021, DeFis Total Value Locked has increased by 300% since the beginning of the year.
TVL is one of the most important factors in assessing the overall growth rate of DeFi. It reflects the value of funds invested by users into DeFi projects. The current TVL exceeds $60 billion, but in mid-May its peak value reached $86 billion. The exponential growth of the DeFi market and the maximum TVL reflect the large potential of digital currencies and decentralized platforms.
Appearance of Fan Tokens
NFT and digital ownership have influenced the appearance of fan tokens. Fan tokens are a form of cryptocurrency that provides holders with access to various benefits important to fans. These tokens are similar to NFT, but they are interchangeable. Cryptocurrencies allow sports clubs, celebrities and businesses to launch their own fan tokens, and fans can purchase them for a collection or as an investment. In 2021, football clubs sold more than $300M worth of fan tokens (PORTO, LAZIO, SANTOS, CITY). Fan tokens help to build identity and develop communities, allowing fans to support their favorite teams and brands while being rewarded for their loyalty.
Rise of the Metaverse
Undoubtedly, Facebook's rebranding to Meta and other big players entrance to digital technologies is helping drive the adoption of the metaverse. Along with the growing popularity of NFT games, for example, Axie Infinity (AXS) and MOBOX (MBOX), in 2021, metaverses began to interest people all over the world. The metaverse allows users to experience virtual reality with the right mechanisms to ensure a functional and digital internal economy, making the future of gaming and social networks more exciting and realistic. The metaverse, which unites the digital and physical worlds, will be of interest in 2022.
The development of the metaverse will also bring us closer to the Internet of the future, Web 3.0, which is a new state of the World Wide Web with a blockchain-based decentralized ecosystem, allowing anyone to create and interact with other people.
If all participants in the crypto space continue to work in the direction of Web 3.0, we may witness the shift to the Internet of the future this year.
Source: binance.com
