2021 Crypto Market Assessment
From the crash, the corporate buy-ins, DeFi, NFT’s, meme coins, and more, let’s take a look back on this year in crypto.
2021 has been a very dynamic year within the crypto and blockchain industry. From booming crypto ATHs, to a massive price correction across most cryptocurrencies, these last few months have seen a lot of action. In this article, we will review what’s been happening in the market so far in 2021 across global adopters of crypto, DeFi, meme coins and the boom of NFT’s.
Crypto Institutional Adoption
In February, Elon Musk announced that Tesla would accept bitcoin as a form of payment for all models of its cars in the US. In addition, Twitter’s CEO and founder, Jack Dorsey, teamed up with Jay-Z for a bitcoin endowment. Although this predominantly took the news at the beginning of the year, here is a list of companies also accepting or implementing cryptocurrency.
Visa, Mastercard, JP Morgan, Goldman Sachs, Twitter, Tesla, Burger King (Venezuela), KFC, Pizza Hut, Taco Bell, Xbox, Paypal, Stripe, Coca-Cola, Sotheby’s, just to name a few.
DeFi in 2021
Within the blockchain and crypto arena, few things are currently as talked about as DeFi. DeFi’s dominance in 2020 saw billions of dollars locked on various platforms by the middle of the year. 2020 was the year that DeFi saw its boom, and so far in 2021 it’s gearing up to be the year that it matures and properly solidifies its place within the financial space.
Many projects continue to come to the market every day in the DeFi space, and rightfully so. The main things DeFi will need to conquer are the large gas fees and accessibility issues to truly help it thrive moving forward.
There has been explosive growth in certain cryptocurrencies deemed “meme coins.” These tokens, the most popular being Doge, started out as either a joke or community joke. Doge, which was only $0.05 in April, rocketed up to over $.7 in May, after Elon Musk shared a series of tweets about the token. There have been others that have followed in its tracks such as Shiba coin and more.
NFT’s Boom in 2021
NFTs, or non-fungible tokens, have exploded in popularity this year in sync with a rise in the values of cryptocurrencies like Bitcoin and Ethereum. This trend hasn’t gone unnoticed by investors, who have poured over $90 million into NFT and digital collectibles companies so far in 2021.
One of the largest deals we’ve seen was for Sorare, a blockchain-based fantasy football game, which raised about $50 million in February from VC heavyweights like Benchmark and Accel, as well as soccer star Rio Ferdinand. Without a doubt, we will see NFT’s continue to boom throughout the rest of the year.
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