5 cult trends in the crypto market in 2021

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2021-12-31 16:16:10

It can be said that 2021 is a particularly explosive year for the entire crypto market. Here are the five most influential trends across the entire market over the past 12 months.

Memecoins

After memecoins gained prominence in 2020 by the time the DeFi summer hit, they took center stage in 2021.

However, unlike other trends, memecoin seems to be driven by Elon Musk, CEO of Tesla. Person of the Year in TIME Magazine has greatly contributed to increasing people’s awareness about the king of memecoin – Dogecoin.

Years ago, Dogecoin (DOGE) may have started as a joke, but now it is one of the top crypto projects in the world with hundreds of thousands of HODLers and has one of the strongest communities. Moreover, with Musk’s backing, DOGE, may be accepted by Tesla for some of its items.

The cryptocurrency is up nearly 4,000% so far so far, though it is trading 76% below ATH in May.

Dogecoin has inspired the entire memecoin movement and one of the most vivid examples is Shiba Inu’s SHIB token.

Calling itself the “Dogecoin killer,” SHIB has become one of the best performing cryptocurrencies of the year, with many stories of investors who put in as little as $100 a year ago becoming millions. rich. Although SHIB is currently trading 60% below ATH, the token price has increased by 44,636,200% in just the past 12 months.

Furthermore, memecoins have become a household name as well as a viable market positioning strategy. The rise of Doge and Shib shows that there is a separate product market for memecoins and many development teams have begun to explore ways to create legitimate business platforms in this area.

NFT

NFT has been a leader in the crypto industry for quite some time. This is also one of the trends that attract a lot of new users in this field.

The reason for this momentum could be that the NFT is not linked to complex economic models and attempts to circumvent monetary policies. To most people, NFTs are just fun, scarce, verifiable representations of digital art.

One of the 9 Alien CryptoPunk was sold for $8 million

However, it’s not that simple. The NFT carries the artist’s digital signature and cannot be copied, making each NFT essentially unique.

Perhaps the most influential story was the sale of The First 5,000 Days by Beeple for a hefty price tag. This is a collection of 5,000 pieces of digital art that Mike Winkelmann (aka Beeple) created over 5,000 days. The work sold for $69 million at Christie’s auction, making him one of only three living artists whose artwork was purchased for the highest price.

From CryptoPunk, Rock, Bored Apes Yacht Club, Rumble Kong and Hashmass to numbers written on white background, NFT is everywhere. What’s even more interesting is that this trend doesn’t seem to be slowing down at all. While retail investor interest in NFT has declined, the token is fundamental to Metaverse and the play-to-earn model.

Play-to-ear (P2E)

Blockchain and online gaming are two fields that go hand in hand for quite a long time. Over the years, we’ve seen a few games powered by distributed ledger technology, but at the time, nothing really worked out.

However, all of this changed in 2021, and especially towards the end of Q3 and Q4. It was Axie Infinity that led the market boom throughout the past year. One of its native tokens – AXS – has grown from around $0.50 and hit an ATH at $160 in November. At the current time, AXS is up nearly 17,000% in just the past 12 months, despite being boosted. trading is much lower than the previous ATH. Furthermore, a piece of land in the Axie Infinity universe was sold for $2.3 million not too long ago.

AXS/USDT. Source: TradingView

P2E really took off after Facebook revealed that it was going to rebrand as Meta and become the “big guy” in building Metaverse. The field of play-to-earn (P2E) has exploded and is still a super hot topic at the moment.

Projects like The Sandbox and Decentraland broke into the top 50 and even surpassed Axie Infinity to become the biggest game project.

Nowadays, it seems that the concept of Metaverse is all around us, and the hype is real. Hundreds of development teams are racing to create a blue-chip blockchain game that will attract many players and become a leader in the market.

Binance Smart Chain fever

If last year we saw DeFi summer on Ethereum, this year we see the same madness on Binance Smart Chain (BSC).

The demand for decentralized applications increased so much that it clogged the Ethereum network. Many have to pay hundreds of dollars in transaction fees, making it virtually impossible for small investors to get into the DeFi sector.

However, as the yield farming metagame became more and more popular, alternatives began to appear with the aim of attracting all the players who were looking for a transaction network with cheaper fees than Ethereum. .

This is how Binance Smart Chain stands out. By mid-February, the number of unique addresses on BSC had tripled. In March, the number of 24-hour transactions on PancakeSwap (the largest DEX on BSC) was higher than on the entire Ethereum network.

Number of unique addresses on BSC | Source: BSCScan

In April, the total value of assets locked (TVL) on PancakeSwap reached $5.5 billion, temporarily surpassing Uniswap’s TVL.

All the projects built on Ethereum are suddenly being recreated on BSC, but it seems to be in vain. Most of these projects are now “dead” as the hype surrounding BSC fades away. While the number of unique addresses continues to grow, it’s still not at the same rate as it was during its previous heyday.

This whole trend is part of the reason why Binance Coin (BNB) is also up over 1200% in the past 12 months.

Laser Eye: Bitcoin Heads to $100,000

Laser eye is the Bitcoin-focused trend and has also seen a lot of hype throughout the past year. Basically, someone came up with the idea of ​​putting a laser eye on their Twitter profile picture and keeping it that way until the BTC price hits $100,000.

Cryptocurrency community and laser eye trends | Source: Twitter

Many people, including MicroStrategy CEO Michael Saylor, US Senator Cynthia Lummis, got involved with the idea, making it one of the most popular trends of the year.

However, this trend did not last long as shortly after it started, Bitcoin price dropped by around 50% leading some to speculate that this hype could be a signal that BTC has formed a top.

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#cult #trends #crypto #market

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