2021 was an exciting year for the blockchain. The total market cap of blockchain projects surpassed $2 trillion, and Bitcoin’s price touched a record high of $67,674.
Meanwhile, Ethereum skyrocketed 5x in price after the London upgrade, while blockchain investment also flourished, with cumulative funding for the year topping $30 billion.
We witnessed the explosion of DeFi 1.0, followed by the booming multi-chain ecosystem and the rapid expansion of the stablecoin market.
2021’s Biggest Trends
1. DeFi 2.0
The TVL of DeFi 2.0 projects soared from zero to $30 billion in 2021 within eight months.
Composable DeFi Legos have become some of the key features of blockchain applications—referring to components that can be combined and integrated across different platforms and apps.
DeFi 1.0 created liquidity, LP tokens, and decentralized stablecoins as the first generation of DeFi Legos. 2021 saw the rise of DeFi 2.0, which turned liquidity into a new Lego portfolio for DeFi.
Footprint Analytics – TVL of DeFi 2.0 Projects soared from 0 to 30 Billion in 2021
The TVL of ETH cross-bridge projects surpassed $25 billion in 2021.
The booming multi-chain ecosystem has made the flow of assets across different chains an immediate need.
Cross-chain bridge protocols are bridges to link assets across chains, allowing assets to interoperate and transfer across chains efficiently.
Footprint Analytics – TVL of ETH Cross-bridge Projects Surpassed 25 Billion in 2021
(Decentralized Autonomous Organizations) went from cryptocurrency jargon to an actual functioning part of the blockchain industry in 2021, with Uniswap DAO being the most influential.
ConstitutionDAO promoted the concept of DAO to the masses, while other projects brought DAOs to financial, musical, and cultural spheres.
Footprint Analytics – Uniswap DAO Has Become a Highly Influential DAO.
NFT projects’ monthly trading volume peaked at $5.5 billion in August and reached $21.5 billion in total by the end of the year.
NFTs mark ownership of digital assets in a decentralized way and have been instrumental in getting more people interested in blockchain technology.
From art collectibles to music and other areas like the metaverse, NFTs will change the way we experience the web, buy and sell art, consume branded products, and even create and experience music.
Footprint Analytics – NFT Projects’ Trading Volume Peaked at 5,586 Million in August
Embodying a new genre of play-to-earn games, the GameFi sector combines gaming, finance, and NFTs.
Axie Infinity’s highest single-day revenue in July even surpassed the highest single-day revenue of the highest-grossing game in the world, Glory of Kings. Facebook changed its name to Meta, further driving the metaverse boom.
Footprint Analytics – GameFi Projects’ Trading Volume Increased More Than 28X in 2021
2021 Trends That Are Expected to Continue in 2022
InteroperabilityMore projects in 2022 will offer universal infrastructures for blockchain interoperabilityCross-chain DeFiMetaverse, Web 3.0（blockchain network infrastructure), NFTs, and GameFiWeb 3.0 infrastructure protocols are emerging and thriving—e.g. computation, storage, bandwidth and indexing.NFTs with more utility, gaining access to super-exclusive communitiesMusic NFTsBrands and larger companies stepping up their experimentation with NFTs.The biggest gaming companies moving into GameFiLending platforms starting to accept metaverse land as collateral for loansDAONFT + DAO，GameFi + DAOSocial tokens, self-sovereign identity, and decentralized identity being established in the metaverse
New Trends Expected in 2022
The development and roll-out of more Layer 2 solutions will make Ethereum cheaper and faster.Financial industry breakthroughsMore new applications incorporated with DeFiSmart contract socializationTransformation of tangible assets into digital assets, written agreements into on-chain contractsCrypto paymentIncreasing adoption from institutions and companiesThe use of crypto for payments is expected to gain further momentum in 2022Stablecoins regulation
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Date & Author: Jan 14 2022, [email protected]
DataSource: Footprint Analytics
This article is part of our Year in Review series.
Posted In: Analysis, Technology
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