2021 has been a watershed year for the cryptocurrency market in many ways, and most investors are delighted that the price of bitcoin (BTC) has hit a new all-time high of $ 68,789. At the same time, Ether (ETH) made a parabolic rally, which saw the price rise 565% from January 1 to a record high of $ 4,859 on November 10.
While it has been a landmark year for high-value cryptocurrencies, some of the greatest advances and most effective developments have come from the altcoin market, where Decentralized Funding (DeFi) and Non-Fungible Currencies (NFT) have increased and contributed thousands of percent. At a new level of awareness and acceptance of blockchain technology and cryptocurrency.
Here are five cryptocurrency projects that have made significant contributions to the cryptocurrency ecosystem in 2021.
The Uniswap Decentralized Exchange (UNI) has undoubtedly made the biggest impact on the crypto ecosystem as a whole since its launch in summer 2020, with DEX experiencing significant growth in 2021 as it helped ease the launch of thousands of new crypto projects by removing startup barriers. Present at central exchanges.
Data provided by Dune Analytics shows that Uniswap has been the dominant DEX for a year, consistently experiencing more volume than all other DEXs combined.
Monthly DEX volume by project. Source: Dune Analytics.
As you can see from the above graph, volumes on decentralized exchanges began to grow already in the second half of 2021, mainly due to activity on Uniswap.
During 2021, Uniswap also led the development area, along with the protocol developers, which announced the release of Uniswap v3 in March. The V3 update included several protocol updates and set the stage for integrating scaling solutions like Optimism and Arbitrum with Uniswap as a way to reduce transaction costs and processing time for users.
Aave (AAVE) is a DeFi lending protocol that allows users to deposit and borrow tokens as a way to make a profit or provide them as collateral to borrow another asset.
As the DeFi sector began to pick up steam in early 2021, AAVE became a community favorite thanks to its wide range of supported cryptocurrencies and the backing of some well-funded players.
During the year, AAVE expanded its capabilities and released AAVE v2, which added support for Polygon, a phased expansion solution, and Avalanche (AVAX), a popular cross-chain blockchain network.
Total liquidity under the AAVE protocol. Source: Aave
As a result of these additional capabilities, the total liquidity of the AAVE protocol exceeded $ 25.7 billion, making AAVE the most popular DeFi protocol with Total Value Lock (TVL) functionality.
Curve Finance is a stable cryptocurrency-focused protocol that uses an automated market maker to manage liquidity on the DeFi platform and ecosystem.
Stable coins have become an important part of the cryptocurrency community in 2021 because they provide sufficient market liquidity and a safe haven for traders looking for a safe haven during times of high volatility.
The growing importance of stablecoins in favor of the original Curve and CRV protocol by accelerating the integration of stablecoins into many of the best DeFi protocols, including the Yearn.Finance ecosystem and Convex Finance.
Despite the fact that most of the assets locked in the Curve protocol are hidden currencies, the platform now ranks second among the leading protocols when it comes to TVL after AAVE, with Defi Llama data showing that $ 21.77 billion is currently locked. … in the arch of the curve.
The total insured value is on the curve. Source: Devi Lama
Curve is also integrated with many of the most active blockchain networks, including Ethereum, Avalanche, Harmony, xDAI, Polygon, Arbitrum, and Fantom, further evidence of the protocol’s ambition to become a stable liquidity provider for the entire crypto market.
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Axie Infinity is a trading and fighting (P2E) game that allows participants to collect, breed, breed, fight and trade NFT-based creatures called Axies.
The P2E model has become a new fan favorite in 2021 as it gives users the opportunity to generate daily income with games, which offers some unique advantages over the traditional Pay-to-Play model.
Along with the growing popularity of Axie Infinity, a new all-time high has been reached for the platform’s own token AXS. As the token reached new heights, the platform generated $ 17.55 million in daily revenue on August 6.