2021 was an thrilling 12 months for the blockchain. The overall market cap of blockchain initiatives surpassed $2 trillion, and Bitcoin’s worth touched a report excessive of $67,674.
In the meantime, Ethereum skyrocketed 5x in worth after the London improve, whereas blockchain funding additionally flourished, with cumulative funding for the 12 months topping $30 billion.
We witnessed the explosion of DeFi 1.0, adopted by the booming multi-chain ecosystem and the fast enlargement of the stablecoin market.
2021’s Greatest Developments
1. DeFi 2.0
The TVL of DeFi 2.0 initiatives soared from zero to $30 billion in 2021 inside eight months.
Composable DeFi Legos have develop into a few of the key options of blockchain functions—referring to parts that may be mixed and built-in throughout completely different platforms and apps.
DeFi 1.0 created liquidity, LP tokens, and decentralized stablecoins as the primary era of DeFi Legos. 2021 noticed the rise of DeFi 2.0, which turned liquidity into a brand new Lego portfolio for DeFi.
The TVL of ETH cross-bridge initiatives surpassed $25 billion in 2021.
The booming multi-chain ecosystem has made the circulate of belongings throughout completely different chains an instantaneous want.
Cross-chain bridge protocols are bridges to hyperlink belongings throughout chains, permitting belongings to interoperate and switch throughout chains effectively.
(Decentralized Autonomous Organizations) went from cryptocurrency jargon to an precise functioning a part of the blockchain business in 2021, with Uniswap DAO being probably the most influential.
ConstitutionDAO promoted the idea of DAO to the lots, whereas different initiatives introduced DAOs to monetary, musical, and cultural spheres.
NFT initiatives’ month-to-month buying and selling quantity peaked at $5.5 billion in August and reached $21.5 billion in whole by the top of the 12 months.
NFTs mark possession of digital belongings in a decentralized manner and have been instrumental in getting extra individuals occupied with blockchain expertise.
From artwork collectibles to music and different areas just like the metaverse, NFTs will change the best way we expertise the net, purchase and promote artwork, eat branded merchandise, and even create and expertise music.
Embodying a brand new style of play-to-earn video games, the GameFi sector combines gaming, finance, and NFTs.
Axie Infinity’s highest single-day income in July even surpassed the best single-day income of the highest-grossing recreation on this planet, Glory of Kings. Fb modified its title to Meta, additional driving the metaverse growth.
2021 Developments That Are Anticipated to Proceed in 2022
- Extra initiatives in 2022 will provide common infrastructures for blockchain interoperability
- Cross-chain DeFi
- Metaverse, Internet 3.0（blockchain community infrastructure), NFTs, and GameFi
- Internet 3.0 infrastructure protocols are rising and thriving—e.g. computation, storage, bandwidth and indexing.
- NFTs with extra utility, having access to super-exclusive communities
- Music NFTs
- Manufacturers and bigger firms stepping up their experimentation with NFTs.
- The largest gaming firms transferring into GameFi
- Lending platforms beginning to settle for metaverse land as collateral for loans
- NFT + DAO，GameFi + DAO
- Social tokens, self-sovereign identification, and decentralized identification being established within the metaverse
New Developments Anticipated in 2022
- The event and roll-out of extra Layer 2 options will make Ethereum cheaper and quicker.
- Monetary business breakthroughs
- Extra new functions integrated with DeFi
- Good contract socialization
- Transformation of tangible belongings into digital belongings, written agreements into on-chain contracts
- Crypto fee
- Growing adoption from establishments and firms
- The usage of crypto for funds is anticipated to realize additional momentum in 2022
- Stablecoins regulation
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Date & Writer: Jan 14 2022, [email protected]
DataSource: Footprint Analytics
This text is a part of our Yr in Evaluate collection.
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