The year 2021 is approaching, and if there is a way to explain how things have been in the cryptocurrency industry in the last 12 months, this will be a significant boost.

Major cryptocurrencies have broken previous records, increased their adoption, new sectors have emerged, and new use cases for blockchain have made significant breakthroughs.

The latest issue of Market Insight recalls events that have been involved in past issues, as well as deeper topics from Cointelegraph Research Industry reports.

Defy and Altcoins
The two leaders in development in 2021 are Solana (SOL) and Terra (LUNA). Sol added 9,500% and LUNA added 13,000%. Significant investment and development of the ecosystem have contributed huge profits for the two baskets. It could also be argued that the two, who were denounced as a possible Ethereum killer, participated in a large rally.

In the decentralized finance (DeFi) scenario, these two tokens are in the top 5% in terms of total closed value (TVL). According to Defi Llama, Solana is ranked 5th with $ 11.45 billion, while LUNA recently ranked second with Binance Coin (BNB) at $ 18.9 billion. In addition, the developing ecosystems of Solana and Terra deserve more in-depth study, as they are the subject of future reports from Cointelegraph research.

DeFi followed the same growth momentum as the broader cryptocurrency market in 2021.
There is no doubt that competition for Ethereum has increased. His share in TVL was 97% in January, but is currently down to 62.54%, according to Duffy Llama. The next phase of the sector’s development is questioned in 2022, especially since DeFi’s growth became so important this year that authorities refuse to allow the industry to find ways to make it. General Chat Chat Lounge

Defi’s market cap remains a small part of the total cryptocurrency market cap, but there is still a similar growth momentum. Some believe that integration with traditional banking could be one of the main focus areas for DeFi in 2022.

NFT
Non-refundable tokens, or NFTs, reached their target year in 2021 despite being available from 2014. The bulk of sales came in the last 12 months, surpassing $ 14 billion in December. Digital art collections and collecting accounts account for 91% of sales, which is one of the key data presented in this report.

The first half was mainly driven by individual artists joining the site with their collections and some high profile sales, while the second half featured more prominent brands.

For example, Coca-Cola auctioned a leather bubble jacket in Decentraland, and Visa bought its first NFT. The inclusion of these brands has allowed the NFT market to flourish. The report also says that the most profitable NFT collection in 2021 was “CryptoPunks”. CryptoPunk NFT offers the best average ROI ever compared to other popular NFTs collections such as CryptoKitties and Bored Ape Yacht Club.

NFTs also disrupted the gaming industry and became a key to fully understand the metaverse concept through their blockchain properties. However, some critics suspect that the 2021 parabolic surge will play out in 2022, especially with closer regulatory scrutiny.

However, the volume of VC investment in NFT this year is high. According to PitchBook, NFT funding already totals $ 2.1 billion in Q120 in 2021, while approximately 40% of venture capital deals are from Andrew Horowitz, just one company. Thus, as sales and interest in NFTs continue to grow, it may be difficult for companies looking for higher growth potential to resist NFTs.

The rules
2021 was a breakthrough year in the field of cryptocurrency regulation. The 117th US. It. Congress has introduced 35 bills addressing cryptocurrency regulation, blockchain policy, and central bank digital currency. Federal Reserve Chairman Jerome Powell expressed his view that cryptocurrency is not a serious threat to the stability of the US. It. Financial market. However, one potential debate that could enter the next year is the stable coons rule.

The President’s Working Group on Financial Markets said in its report that Stabilcoins could be a lucrative alternative payment option, but “subject to proper oversight.” There are currently no rules for Stabilcoins, although at the time of this writing, their market capitalization has exceeded $ 162 billion, but the bill proposed by Senator Cynthia Lomis of Wyoming could be a step towards that.

Source: CoinTelegraph

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