This year has been quite remarkable in terms of crypto evolution. Innovative blockchains have been on the rise, while altcoins have soared, and the NFT market has been booming. Discover the most notable trends to follow if you want to understand where the industry is heading.
1. Growing Market Cap and Altcoin Boom
In April 2021, the value of the crypto market rose above $2 trillion for the first time in history. The spectacular growth was mostly fueled by the skyrocketing of Bitcoin and Ethereum, which both set new records. The market capitalization of BTC alone stayed at $1 trillion dollars for a week.
It is still dominating the market, although its market cap has fallen against the overall market cap of altcoins. These crypto assets are on the rise, which gives experts reasons to suggest that the altcoin season has begun. Now is a great time for portfolio diversification.
2. Record Highs of Bitcoin
In the first three months of 2021, Bitcoin broke its own records several times, and its price return doubled. This was due to a combination of factors, from the listing on ETFs to participation of institutional investors. Adoption of cryptocurrencies by Visa, MasterCard and PayPal also contributed to the rise. Finally, the surging inflation in the USA has boosted the appeal of Bitcoin, so the demand is going up.
3. DeFi Growth and Appreciation of DEX Coins
Since the beginning of the year, the DeFi market has grown almost four-fold. Today, it is worth over 95 trillion dollars. The overall growth is driven by the development of different sectors within DeFi. In particular, doubling of the stable coin supplies, tripling all the total value of outstanding loans, and the growth of the DEX volume by 250%.
Around half of the total market cap of DeFi is contained in DEX tokens like UNI, SUSHI, and CAKE, which have all grown substantially since the beginning of 2021.
4. The Multi-chain Future of Crypto
Many experts perceive multi-chain technology as the future of cryptocurrencies. As the costs of Ethereum-based projects are rising, the alternatives are increasingly attractive. For example, SushiSwap and Tether have opted for the Avalanche environment, while fathers are considering Polkadot or Fantom.
5. NFT Market Boom
Non-fungible tokens are all the rage, as the segment exploded in the first months of 2021. Its market cap has exceeded 22 billion. The largest share of sales comes from collectible items and art, such as Cryptopunk, Hashmasks, and Beeple. Sport (e.g., NBA Top Shot and Topps MLB) comes second. Around 8% of sales come from Metaverse, which is an alternative digital reality for playing, working, and shopping.