Selecting Key Points from the Block 2022 Digital Asset Outlook Report
The block has summarized the results of the year out in the crypto industry. This has been a huge success for him – most of the key indicators update their historical highs. First of all, this is market capitalization – in the first half of November it was close to the $ 3 trillion mark. At the same time, the $1 and $2 trillion indicators were also reached in 2021 – in January and May, respectively.
- Bitcoin maintains its leadership in the market, while its value has doubled throughout the year. In early November, the main world cryptocurrency set a historical record – the price of one coin reached $ 69 thousand. Its capitalization increased by $545 billion over the year: bitcoin grew 2.5% slower than gold, but 26% and 31% faster than the S&P500 and Nasdaq indexes.
- The rest of the world’s top 10 cryptocurrencies in terms of capitalization (excluding stablecoins) have also increased in value throughout the year. Moreover, they are all growing more actively than bitcoin.
The world’s largest cryptocurrency profitability in 2021. Block Data
- Stablecoins are gaining increasing recognition from institutional investors, thanks to which their total supply in the year out has grown from $29 to more than $140 billion. The annual volume of transactions with them exceeds $5 trillion, which is almost four times more than at the end of 2020.
- In May, cryptocurrency trading volume on the exchange hit an all-time high, exceeding $2.2 trillion. Towards the end of the year, they declined again, by $1.4 trillion in November. Binance remains the most popular cryptocurrency exchange in the world – it accounts for 66% of the total trading volume.
- The interest of venture capitalists in the cryptocurrency market in 2021 is also at the highest level in history. The volume of investment since the start of the year has exceeded the total for the previous six years, which was $14.4 billion. If we take data for the period December 2020 to November 2021, then this number will grow to $24.7 billion. .
- By 2021, there will be at least 65 unicorn companies in the crypto sector. Over the past two years, this number has grown fivefold.
Unicorn company in the cryptocurrency market. Block Data
- 2021 will be remembered as the NFT boom period. The market for non-exchangeable tokens, which provides a new way for content creators to monetize their work, ranks third in the entire cryptocurrency market in terms of attractive investments – it amounts to $5 billion. The total number of active wallets on the NFT market has grown by more than six times since the beginning of the year.
- The number of mergers and acquisitions (M&A) in the crypto industry has also hit a record – 197 transactions totaling over $6 billion were recorded. For comparison: in 2020, 85 transactions worth around $730 million have been made by BitGo, at $1.2 billion, it has become the highest. largest in the history of the industry.
The largest merger and acquisition in the cryptocurrency market in the history of the industry. Block Data
- The coming year will be marked by the rapid growth of decentralized financial markets (DeFi). The value of the funds blocked in it has grown from $16 to more than $100 billion.
- Most of these funds come from credit services and decentralized exchanges. At the same time, the landscape of decentralized financial markets is becoming more diverse. In 2021, many new DeFi categories have emerged, such as crypto derivatives, liquid bets, and algorithmic stablecoins.
Amount of blocked funds in DeFi projects by category. Block Data
- The annual growth in trading volume on decentralized exchanges (DEX) in November 2021 was 522%. Reached the maximum in May 2021 – by the end of the month, it reached $163 billion.
- At the same time, the amount of funds stolen as a result of attacks on DeFi projects has increased. That’s more than $600 million, with nearly a third coming from projects backed by the Binance Smart Chain (BSC).
Read also: a substitute for traditional finance or a hobby club – what the future of DeFi looks like
- However 2021 will be associated mainly with NFT. In mid-November, trading volume reached $8.8 billion, of which 60% came from art and collectibles, and the remaining 40% from NFT games.
NFT weekly trading volume in 2021. Block Data
- Activity around the NFT peaked in the third week of August, when in just seven days trading volume exceeded $1 billion.
- NFT blockchain game Axie Infinity dominates the gaming sector in terms of NFT sales. In addition, both primary and secondary – according to this indicator, are almost twice ahead of their closest competitor – the CryptoPunks project.
Read also: NFT: how the market for unique tokens works and what to be afraid of
- In 2021, the first country to make bitcoin legal tender is El Salvador. The relevant law was signed by the President of the Latin American Republic Nayib Bukele. By legalizing BTC, he stated that this was done to increase the accessibility of the country’s residents to financial instruments.
- China has made significant progress in rolling out the digital yuan. The country’s authorities are continuing to increase the number of territories in countries participating in the pilot project, and are also connecting the digital currency to the CBDC Multiple Bridge system, which is testing cross-border transfers in China, Singapore, Hong Kong and Thailand.
Hashrate of the world’s largest mining pool in 2021. Block Data
- The United States became the world’s major mining hub after Chinese authorities effectively banned mining on their territory. American pool Foundry USA replaced China’s AntPool from first place in terms of hash rate towards the end of the year.
- The cryptocurrency market is in the spotlight of regulators around the world. While some of them are looking for ways to incorporate cryptocurrencies into their existing regulatory framework, some have moved to outright banning activities associated with them. This is most actively pursued in China, whose authorities, after the mining ban, removed any transactions with cryptocurrencies from the legal sphere.
Read also: Why China introduced “Crypto Yuan”