2021 was a unique year for crypto world. Most of major cryptocurrencies reached all time high and pushing total crypto market capitalisation to nearly $3 trillion ($1 trillion market cap was reached in January and $2 trillion market cap was reached in May). In 2021 Bitcoin doubled its market capitalisation by reaching $69,000 on its all time high mark. For comparison the S&P 500 has climbed 26% so far in 2021, after rising 16% in 2020.
Top 10 cryptocurrencies (excluding stablecoins) outperformed Bitcoin in price appreciation. Layer-1 protocols (predominantly Solana and Ethereum) and memecoins were the breakout winners on 2021.
Return on top 10 cryptocurrencies in 2021:
- Bitcoin: 99%.
- DOT: 297%.
- XRP: 350%.
- ETH: 502%.
- ADA: 781%.
- BNB: 1,568%.
- AVAX: 3,599%.
- DOGE: 4,473%.
- SOL: 13,381%.
- SHIB: 57,684,179%.
This percentage of growth is beyond any expectations, especially SHIB (Shiba Inu memecoin). For better understanding here’s an example: $15 invested on January 1, 2021, will be worth $8,652,642.
The total adjusted on-chain volume for public blockchain reached $7.5 trillion between Bitcoin and Ethereum. Bitcoin on-chain volume increased from $1 trillion in 2020 to $4.2 trillion in 2021. Ethereum on-chain volume increased from $403 billion in 2020 to $3.3 trillion in 2021.
In 2021 demand and supply (from $29 billion to $140 billion) for stablecoins increased. Stablecoin adjusted transaction volume (on public blockchain) crossed $5 trillion in 2021.
In 2021 crypto mining in China was banned. This led to lower hash rate and relocation of many Chinese miners. Reduced hash rate reduced mining difficulty and resulted in drastic change in top 10 mining companies.
This is the Part 1. Part 2 will be published tomorrow.