What happened this year? Metaverse, NFT, DAO, Web3… and much more. A look at the most exciting trends that marked the crypto space in 2021.
2021 has been a year full of exciting developments for the digital currencies space.
As the adoption of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. and other cryptocurrencies continued to grow among institutional investors, we saw some milestones that marked a before and after for crypto. Among them, the approval of the Ley Bitcoin in El Salvador, which made the flagship cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. legal tender within that country. Banks have also explored CBDCs as the metaverse has been in the spotlight.
In a previous article, DiarioBitcoin listed the ten most relevant events that happened this year within the cryptocurrency ecosystem. This time, we review some of the trends that marked the crypto world in 2021: tokens doggy, NFT, games Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. DAO decentralized autonomous organization, system of rules that define how a decentralized organization should operate and which actions it should take. and many other advances that determined a unique period for this evolving sector.
1. NFT non-fungible tokens (NFTs) are cryptocurrencies that do not possess the property of fungibility. became fashionable
Undoubtedly one of the most outstanding trends of 2021 were the tokens non fungible in cryptocurrency, fungibility is when a coin or token can be replaced by any other identical coin or token. assets, NFT for its acronym in English. Scarce digital assets based on Blockchain revolutionized the industry and reached every corner of the world: everything became a NFT and everyone – from celebrities, athletes, politicians and big-name brands, to robots -, made inroads into the NFT space.
The fashion was marked by the iconic sale of the NFT play ‘Everydays‘, by the digital artist Beeple for the exuberant sum of USD $69 million in March. The tokenized art piece became the most expensive of all time, as well as one of the most expensive pieces of art by a living artist. The trend only continued to grow throughout the year, seeing companies from the likes of Adidas, Playboy, Gucci, Twitter to name a few, launch their own NFT collections.
This year, the prestigious auction an auction is a public sale through a bidding process where an asset is sold to the highest bidder. house Christie’s generated $150 million in profits from the sale of NFTs, while the industry as a whole became a market of USD $22 billion . Chances are we will see this sector grow much more over the next year as more companies get excited about exploring collectibles.
2. Bitcoin strengthened as a hedge
In the midst of a second year of the COVID-19 pandemic, and with the effects of this global health crisis still wreaking havoc on the economy, the narrative of Bitcoin as a safe-haven asset and hedge against inflation a general increase in prices and fall in the purchasing value of money. strengthened in 2021. A large number of institutions around the world backed this use of cryptocurrency, including large banks, companies, and even governments.
La institutional adoption de Bitcoin accelerated, a phenomenon that translated into companies such as Tesla , Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. (old Square ) y MicroStrategy adding millions of dollars of digital currency currency is a medium of exchange that defines value. to its balance sheet. This trend also favored Ethereum a decentralized open-source blockchain with smart contracts functionality. the second-largest cryptocurrency by market capitalization, since the institutions also resorted to to this asset as an investment alternative.
3. Doggies dominated the market an area or arena, online or offline, in which commercial dealings are conducted.
Dogecoin experienced an explosive price increase of more than 4,500% this year, largely driven by the repeated support the opposite of Resistance, it is a threshold that crypto’s price doesn’t fall below. from billionaire Elon Musk in social networks. The sudden surge of the doggy cryptocurrency made it one of the most popular cryptocurrencies in the world. most popular of 2021 and provoked the emergence of copycat projects, which tried to replicate the success using the canine theme.
Despite having emerged as jokes, some of these memecoins managed to gain a lot of attention. Among them, Shiba Inu (SHIB) a self-denominated ERC-20 tokens designed and used solely on the Ethereum platform. token a digital unit designed with utility in mind, providing access and use of a larger crypto economic system. called “ Dogecoin Killer “which became very popular after registering an increase of 8,000,000,000,000% this year. Many similar ones also emerged: in CoinMarketCap you can find more than sixty digital assets just by the term “shib”.
This trend was part of an explosion of interest in meme investment options. Recall that the start of 2021 was marked by the aggressive Reddit forum move.WallStreetBets which was coordinated to cause the rise in the shares of GameStop Corp , AMC Entertainment Holdings Inc and other companies in a game-changing move for Wall Street.
4. Banks turned to digital digital technologies are these electronic tools that have the ability to generate, store or even process data. currencies
Wall Street titans embraced cryptocurrencies this 2021, which seems to determine a turning point for digital currencies and their place in global finance. U.S. bank Morgan Stanley was one of the first to start offering its customers exposure to Bitcoin a move that soon began to be imitated by other renowned companies such as Goldman Sachs , JPMorgan y Wells Fargo .
Meanwhile, recent reports suggest that U.S. banks have begun to explore the use of Bitcoin as collateral collateral is any asset that a lender accepts as a form of security to ensure that the borrower repays a loan. for cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. loans, suggesting that crypto adoption by financial firms is just beginning.
On the other hand, central banks around the world made progress in exploring central bank digital currencies (CBDC). China expanded its testing of the digital yuan to banks, retailers, ATMs, bringing its digital system to the 10% of the population . However, countries such as Nigeria also launched their CBDCs and others such as Sweden and South Korea made progress in this area.
5. Regulators Set Their Sights on Crypto
From banning them outright to legally recognizing them, governments around the world have paid even more attention to cryptocurrencies this year, implementing some of the most significant regulations in history. China repressed cryptocurrency mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. and applied one of the most further prohibitions for the crypto industry. Meanwhile, El Salvador adopted Bitcoin as legal tender .
The continued rapid growth of the digital currency market has not gone unnoticed by regulators. Authorities in India, Russia, the United States and the European Union were among the jurisdictions that began to put forward specific regulatory frameworks for digital assets, while new – and in some cases stricter – regulations were also passed.
The regulatory trend saw the largest exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. cryptocurrency exchanges around the world face heavy scrutiny from regulators globally, and everything points to the fact that in the months and years to come we will continue to see this trend evolve.
6. Blockchain games caused a sensation
The video game craze Blockchain Axie Infinity generated great impact in the industry marking one of the hottest trends of the year. The video game for raising, fighting, and collecting tokenized monsters made waves this year, prompting the emergence of a gaming model called thePlay-To-Earnwhich allows players to win money while having fun.
In the midst of world fame, Axie broke several records, including the record for the most traded NFT collection of history. Meanwhile, other similar video games also gained rapid popularity and various companies began to invest investing is when you put money in a financial scheme with the intent of making a gain. in the promising sector.
The trend for games that leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. blockchain technology and NFTs non-fungible token, a unique non-interchangeable piece of digital content that is stored on a distributed ledger (blockchain). not only revolutionized the gaming sphere, but achieved something unprecedented in the crypto industry: teaching thousands of people about cryptocurrencies while having fun.
7. Metaverse a metaverse is a digital universe that contains all the aspects of the real world, such as real-time interactions and economies. It offers a unique experience to end-users. went from science fiction to reality
The metaverse left science fiction literature to become imminent reality. This year, the term made news headlines around the world after the Facebook renamed its brand to Meta as part of a strategic business shift: creating its own metaverse (a virtual world that leverages technologies such as augmented reality and NFT).
The social media giant’s announcement set a trend this year that saw companies from the likes ofMicrosoft, Adidas , Nike y Epic Games explore virtual worlds. It also favored several of the companies in the sector and decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. platforms likeThe Sandbox (SAND) y Decentraland (MANA), which experienced a sudden surge. The explosion also drew attention to the gaming sphere. Blockchain and NFTs, while sales of virtual lands skyrocketed .
Most likely, this was just the beginning of a trend that will continue to grow over the next few years; especially now that financial experts anticipan that the metaverse could become a multi-billion dollar market.
8. DAOs became a thing
Although they have been around for several years, DAOs (decentralized autonomous organization) drew widespread attention this year and has led some experts to predict that this is the next big crypto trend.
In November, a group of cryptocurrency enthusiasts teamed up to raise funds with the intention of buying an antique copy of the U.S. Constitution. The experiment, dubbed Constitution DAO raised over $40 million in a matter of days and, although it didn’t reach its goal, it generated a lot of media interest due to the success of the fundraiser.
Although it wasn’t the first DAO to form with the intention of buying a piece of art or a collectible – for example, others like PleasrDAO had already undertaken similar initiatives – this particular project demonstrated the power that some groups organized on the Internet can have to carry out great actions in the physical world. Since then, the space seems to fill up with new DAOs every day: now, even the Elon Musk’s brother has his own charitable DAO .
9. Bitcoin has become an option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. for payroll payments.
One of the trends that cryptocurrency saw this year was the adoption of Bitcoin as an option for salary payments. At least five professional athletes in the United States decided to receive, partially or completely, their payroll payments in the cryptocurrency. The star of the NFL, Odell Beckham Jr. who plays for Los Angeles Rams and NASCAR driver,Landon Douglas Cassillare included in this list.
This trend was in turn part of another that saw companies in the cryptocurrency sector sign sponsorship deals for the first time with professional sports teams. One of the most notable was that of crypto-exchange FTX, which renamed the stadium American Airlines Arena a ‘ FTX Arena ‘. The company also bought the rights to the Cal Memorial stadium, which renamed a ‘ FTX Field ’.
The phenomenon has also spread a price difference between asking and selling prices of the asset. to the U.S. political sphere, where at least three politicians have also opted for this alternative. In November, the mayor of Miami, Francis Suarez, became to become the first politician in the United States to receive his full salary in Bitcoin . The followed in the footsteps New York City Mayor Eric Adams and Tampa Mayor Jane Castor.
10. Web 3 announced its arrival
Although it might not yet be classified as a trend, Web 3 has undoubtedly been one of the concepts that, along with metaverse and NFT, have generated great interest and expectations within the sphere. Blockchain and technology in general. The term, which refers to the evolution of the web, presents a vision of an Internet that is more open, connected and decentralized than it is today.
In the future, people won’t have an account an account is essentially a whose purpose is to track the financial activities of a specific asset/ for every social platform. Instead, they will be able to navigate between Facebook, Twitter e Instagram through a single account. They will also be able to have more autonomy and power over their data while the interaction on the Internet is no longer controlled by a central entity, such as Facebook, Amazon o Google to decentralize by taking advantage of blockchain technology. At least this is the vision put forward by some experts, although not all share it.
It’s somewhere between a and z
— jack⚡️ (@jack) December 21, 2021
Companies like Twitter are already working in projects to decentralize the network a network refers to all nodes in the operation of a blockchain at any given moment in time. and other companies have started to show great interest in this development. The most recent efforts to build Web 3 seem to mark a point of no return where trends like decentralization, the metaverse and NFTs will come together to shape the future of the Internet – and the world. As this happens, the enthusiasts are still trying to come to an agreement .
Article by Hannah Estefania Perez / DiarioBitcoin
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