TokenInsight Crypto Market 2021 Annual Report in DeFi&NFT

2021 is an awesome year for crypto. We witnessed a bull market that lasted for almost the whole year. Here we bring you a yearly review of the crypto market as we always do, covering DeFi, multi-chain world, DAO, NFT, GameFi, and others. We hope you will enjoy the report and contact us if you have any feedback.

Of course, as we write this report, as I write this front page and as you read it, the market may not be as hot as it was in Q4 2021, and may even be down quite a bit. As everyone is experiencing, we may have entered a bear market. A bear market comes with a massive price drop and your money loss, but no matter what, we hope our fighting spirit will not be affected too much.

Always have hope and expect great things in life and the future.

The total market capitalization of crypto in 2021 reached an all-time high of nearly three trillion dollars in November. What seemed like an unattainable dream in 2020 came true. Bitcoin and Ethereum broke new highs one at a time, peaking at nearly $70,000 and $5,000 respectively.

Bitcoin became a nationally recognized legal tender for the first time (in El Salvador). Tesla briefly backed Bitcoin as a means of purchase, and public companies increased their acceptance of Bitcoin as Microstrategy persevered in adding Bitcoin to their balance sheets. The U.S. SEC also finally approved a Bitcoin futures ETF. Coinbase, the largest digital asset exchange in the U.S., was successfully listed on Nasdaq.

The Ethereum ecosystem continues to grow, with the number and variety of projects, as well as its own revenue, increasing. The EIP-1559 upgrade reduces the volatility and unpredictability of Gas Fee, and successfully reduces the inflation rate of ETH growth. the era of Layer 2 has also officially begun.

Several Layer 2 protocols, including Optimism, Arbitrum, Boba, and dYdX, went live in 2021, and we managed to see several orders of magnitude higher performance than Ethereum.

BSC, Solana, Polygon, Avalanche, Fantom are all enjoying great success with their fast transaction speed and low fees.

The second half of the year was of course crazy with NFT, which became the word of the year and once again introduced the crypto market to outsiders. 2021 saw the NFT market reach a total market cap of $10 billion and a total trading volume of $18.3 billion. CryptoPunks and BAYC drove the NFT avatar craze, Facebook's name change to Meta completely ignited the metaverse concept, and virtual real estate NFT was once again sought after.

Axie Infinity became very popular in Southeast Asia due to the epidemic, and also directly gave rise to an exciting field: GameFi, where both public chains and investment institutions are actively laying out the game circuit, with P2E, Free to Play, and Play for Fun concept games popping up all over the place. DAO organizations of all shapes and sizes are also popping up. This is also driving the development of DAO tools/infrastructure.

In the new year, TokenInsight has also brought a new product to our users: our own mobile App, and in the future, we will be working even harder to improve our database and provide more timely and helpful analysis and research.

We are happy to hear any feedback and criticism from our users and hope that we can grow together in the new year without fear of bulls and bears.