KuCoin Labs analyzed the data and crunched the numbers to provide a comprehensive overview of the crypto trends of 2021. The team also made some interesting predictions about what 2022 will bring for this ever-evolving industry.
VICTORIA, Seychelles — The year 2021 was an exciting year for the cryptocurrency and blockchain industry. Cryptocurrencies like Bitcoin and Ethereum set a new record last year. According to Wind data on the performance of major assets, Bitcoin is the best performing major and/or alternative asset of 2021, with a 72% year-over-year growth rate, outperforming crude oil and natural gas. Digital assets are revolutionizing the entire financial market and Bitcoin is just a microcosm of it. The performance of the asset brought more attention to the cryptocurrency and blockchain industry, resulting in
an explosive increase in the number of users and cash inflow. The KuCoin Labs report clearly states that there have been some interesting trends in various segments of the industry, including:
- Mention should be made of the 2021 Memecoin of the Year, Doge and Shiba Inu, who are increasing their gains due to the wave of “Tweet Wars” waged by their proponents in the media space.
- Infrastructure Trends – The year has seen a significant number of developments in the blockchain space with Ethereum London upgrade, TVL at Layer 1 vs Layer 2, distribution of nodes for major blockchains, gas usage, etc. . Ethereum TVL is still by far the largest. followed by BSC, Avalanche and Solana. New solutions are being introduced that increase the ease of use of the network and try to lower gas prices. In 2022, it will continue to scale and release upgrades on the Ethereum network, as well as rapidly popularizing competitors like Solana as industry anchors.
- The growth and performance of cross-chain bridges has largely focused on the BTC and ETH networks and they have become passive instruments in the face of poor development traction and other inefficiencies. Similar progress is likely to be made in 2022 in cross-chain development, as well as the general adoption of such solutions at a logical level in large ecosystems.
- NFT and the metaverse – NFT and metaverse markets took center stage in 2021, eventually merging with DeFi and the gaming industry to create a vast ecosystem that empowers users and gives them the reins of trading and asset release digital. With the metaverse as the main hub of NFT activity, 2022 is expected to be the year of the introduction of innovative user identification solutions in the decentralized space and the deployment of various supporting systems for full integration with DeFi.
- DeFi Trends and Industry Overview: The DeFi market continued to evolve in 2021, serving as an entry point for regulator access to the decentralized environment. With the number of new protocols increasing and the position of established protocols strengthening, it is likely that 2022 will see the development of Web 3.0 and other innovative solutions that can engulf the DeFi space and make it more accessible to a new audience of users. .
- DAOs were implemented through various protocols throughout 2021 and are supported by influencers. Not all DAOs have been successful, but their underlying operating principles are strong enough to be used as a basis for the creation of legal entities. 2022 is not likely to be a breakthrough in the expansion of DAO, but rather the refinement of its mechanisms that could pave the way for its future adoption at the corporate or enterprise level.
- Crypto industry and security incidents: In 2021 there were many cases of fraud and security breaches, especially in the DeFi sector, which led the first half of the year. With over $610 million stolen in a single hack, the total amount lost for the year is in the billions of dollars. And while security measures are being refined with the inclusion of audits and asset insurance protocols, it is certain that 2022 will see a similar amount of fraud and theft of funds.
Many of these topics have received mainstream media attention in 2021. The growing popularity of NFTs, DAO companies trying to buy a copy of the Constitution, and Facebook rebranding as Meta to explore the possibilities of the Metaverse are just a few examples of how cryptocurrency and blockchain are seeping into everyday life.
Now that 2022 has entered, KuCoin Labs is looking at what this year will bring for the industry. Will there be more enthusiasm or will regulators react aggressively? Is the NFT trend coming to an end or is it just the beginning of a multi-year global trend? Can the existing bottlenecks in the cryptocurrency and blockchain space finally be addressed?
“KuCoin Labs is assuming its role in advancing the development of the entire crypto industry. We incubate and invest in innovative projects, guiding their development to maturity where they can bring the best of cryptocurrencies. As one of the best investment funds, the team at KuCoin Labs collects professional research on a forward-thinking journey, relentlessly delving into every aspect and detail. KuCoin Labs aims to be an integral force in building the future of Web 3.0.” Said Lou Yu, director of KuCoin Labs.
The forecasts touch on some interesting points that no one can remotely miss with the industry. First, KuCoin Labs recognizes that financial institutions remain crucial in taking blockchain and cryptocurrencies to the next level.
Additionally, more companies set up Bitcoin treasuries in 2021, even though BTC has plunged nearly 50% from its all-time high. KuCoin Labs hopes that more institutions will be transparent about their Bitcoin purchases, although they do not necessarily purchase BTC directly.
The focus on Layer 1 and decentralized finance is likely to continue through 2022. There is plenty of room for further progress, whether it be scalability for Layer 1 or more complex and rewarding DeFi protocols. Other trends to watch out for are:
- And much more
It is going to be another busy year for the blockchain and cryptocurrency industry. For the full report, please contact email@example.com.
About KuCoin Labs
Founded in May 2018, KuCoin Labs is the investment and research force of the KuCoin ecosystem. KuCoin Labs is diversifying and intensifying investment in early-stage projects to help more builders achieve sustainable growth and success in the decentralized world. KuCoin Labs now owns a portfolio of more than 50 projects, including Arweave, MultiVAC, CertiK, OneLedger, LUKSO, and Ankr, in industries such as Infrastructure, DeFi, and NFT. In April 2021, KuCoin Labs launched a $50 million fund to find the following crypto gems; In November 2021, KuCoin Labs launched a $100 million fund to strengthen the metaverse ecosystem and other innovative projects, with the aim of developing the underlying infrastructure by investing in and incubating projects at an early stage.
Launched in September 2017, KuCoin is a global cryptocurrency exchange for more than 640 digital assets. It currently offers spot trading, margin trading, P2P fiat trading, futures trading, gambling, and lending to its 10 million users in 207 countries and regions around the world. In 2018, KuCoin raised $20 million in Round A funding from IDG Capital and Matrix Partners. According to CoinMarketCap, KuCoin is currently the fifth largest crypto exchange. Forbes also named KuCoin one of the best cryptocurrency exchanges of 2021.
For more information, visit https://www.kucoin.com/nl.