In 2019, the crypto market was in a slump. But by 2021, we expect it to be back on top and flush with activity. Here’s what new projects have got planned for this year to cause some waves in the industry.,
In 2021, there are 5 cryptocurrency projects that made waves. The “best defi projects 2021” is a project that has already received funding and is looking to revolutionize the market with its unique technology.
In many ways, 2021 was a watershed year for the cryptocurrency industry, and most investors are ecstatic that Bitcoin (BTC) reached a new all-time high of $68,789. In the same span, Ether (ETH) had a parabolic boom, with its price rising 565 percent from January 1 to $4,859 on November 10.
While large cap cryptocurrencies had a banner year, the altcoin market saw some of the most significant gains and developments, with decentralized finance (DeFi) and nonfungible tokens (NFTs) rallying by thousands of percent and helping to usher in a new level of awareness and adoption for blockchain technology and cryptocurrencies.
Here are five altcoin projects that contributed significantly to the cryptocurrency ecosystem in 2021.
Since its launch in the summer of 2020, the decentralized exchange Uniswap (UNI) has arguably had the greatest impact on the crypto ecosystem as a whole, with the DEX seeing significant growth throughout 2021 as it helped thousands of new crypto projects launch by removing the barriers to launch that existed on centralized exchanges.
According to data given by Dune Analytics, Uniswap has been the most popular DEX throughout the year, with higher trading volume than all other DEXs combined.
DEX volume by project on a monthly basis. Dune Analytics is the source of this information.
The volume traded on decentralized exchanges really began to build up in the second half of 2021, spurred in large part by activity on Uniswap, as seen in the graph above.
Uniswap also led the field in development in 2021, with the protocol’s creators announcing the release of Uniswap v3 in March. Multiple protocol enhancements were included in the v3 update, and it laid the groundwork for layer-two scaling solutions like Optimism and Arbitrum to be integrated with Uniswap in order to assist users minimize transaction costs and processing times.
Aave (AAVE) is a decentralized lending system that enables users to deposit their tokens and either lend them out for a profit or pledge them as collateral to borrow another asset.
As the DeFi sector grew in popularity in early 2021, AAVE became a community favorite because to the large range of crypto assets it offered and the support of several well-funded players.
AAVE’s capabilities and reach grew this year with the introduction of AAVE v2, which included support for Polygon, a layer-two scaling solution, and Avalanche, a prominent cross-chain blockchain network.
On the AAVE protocol, total liquidity. Aave is the source.
The overall liquidity accessible on the AAVE protocol has topped $25.7 billion as a consequence of these new features, making it the top-ranked DeFi protocol by total value locked (TVL).
Curve Finance is a stablecoin-focused protocol that manages liquidity on the platform and throughout the DeFi ecosystem with the help of an automated market maker.
Stablecoins, which offer adequate liquidity for the market and a safe haven for traders seeking refuge during moments of excessive volatility, have emerged as a basic element for the cryptocurrency ecosystem as a whole in 2021.
Curve protocol and its native CRV have profited from the rising relevance of stablecoins by hastening the incorporation of stablecoins into several of the main DeFi protocols, including the Yearn.Finance ecosystem and Convex Finance.
Despite the fact that stablecoins account for a large amount of the assets secured on the Curve protocol, the platform currently ranks second in terms of TVL after AAVE, with $21.77 billion in value locked in Curve vaults, according to statistics from Defi Llama.
Curve has the whole value locked. Defi Llama is the source of this information.
Curve has also merged with several of the most active blockchain networks, including Ethereum, Avalanche, Harmony, xDAI, Polygon, Arbitrum, and Fantom, demonstrating the protocol’s goal of being the global stablecoin liquidity provider.
Stablecoins and cryptos are identified as dangers to the financial system by the US Financial Stability Oversight Council.
Axie Infinity is a fictional character created by Axie.
Axie Infinity is a play-to-earn (p2e) trading and combat game in which players may gather, breed, grow, battle, and trade Axies, which are NFT-based monsters.
Over the course of 2021, the p2e model became a new fan favorite since it allows players to make a daily income while playing their favorite games, which has a few distinct benefits over the old pay-to-play model.
With the growth in popularity of Axie Infinity, the platform’s native AXS coin reached a new all-time high. At its peak on August 6, the platform produced $17.55 million in daily income as the cryptocurrency soared to new heights.
Price of Axie Infinity compared. total revenue Token Terminal is the source of this information.
Axie Infinity was also one of the first projects to set the trend of moving away from the Ethereum network due to excessive transaction fees and slowness. Earlier this year, the project switched to the Ronin sidechain, and in November, it introduced Katana, its own DEX.
Dogecoin is an open-source proof-of-work cryptocurrency that has dominated the “meme” coin market since its inception in 2021.
While the project has made little technical or development contributions, regular shilling from figures such as Tesla CEO Elon Musk and Shark Tank star Mark Cuban helped to propel Doge to a 23,746 percent gain, with the price rising from $0.0031 on January 1 to $0.74 on May 8.
1 day chart of DOGE/USDT. TradingView is the source of this information.
The Dogecoin movement has sparked a meme-coin rise and spurred a slew of copy-dog ventures, like Shiba Inu (SHIB) and Dogelon Mars, on top of the monetary gains (ELON).
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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The “upcoming defi coins” is a list of five cryptocurrency projects that made waves in 2021. The list includes Bitcoin, Ethereum, Litecoin, Ripple and Zcash.
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