An emotional year for the crypto market

An emotional year for the crypto market.

Tesla accepts Bitcoin, Dogecoin Rises, Virtual Universe, China Bans Cryptocurrencies and NFT are events that mark an emotional year for the crypto market.

The past 12 months have been a historic time when Bitcoin, Ethereum, and other coins continually set new records. Market capitalization reaches milestone for the first time 3,000 won Billion USD Beginning of November: Non-fungible tokens (NFTs), virtual universes (metaverse) alternately shaped the media trends of the past year.

The above achievements are achieved not only through the rapid development of cryptocurrency projects, but also through the reactions of technology billionaires like Elon Musk, Jack Dorsey, Mark Zuckerberg.

Last year’s low rating was due to China’s stringent bans when the country officially considered trading cryptocurrencies or mining Bitcoin against the law.

Elon Musk blows the price of Bitcoin and Dogecoin

In early February, CEO Elon Musk announced on Twitter that Tesla had invested worth Bitcoin 1.5 Billion USD to diversify the company’s cash reserves. In addition, Tesla management also intends to enable customers to pay for electric cars with Bitcoin.

Within hours, the BTC price skyrocketed $ 38,000 Go up 46,000 won U.S. dollar, followed by the excitement of the market, which helps Bitcoin’s capitalization hit the milestone 1,000 yen Billion USD on February 19th

Thanks to his pro-crypto posts, Elon Musk will become the most influential person in this market in 2021. Every move he makes on Twitter is closely watched by investors.

When Elon Musk added the bitcoin hashtag on his personal page, the market immediately jumped 11%. In addition, the Dogecoin coin has been around since its inception CEO Tesla has noticed that its price fluctuates with every word it says.

May crashes

Elon Musk there BTC at the top of the price, is also the one that contributed to the decline of this currency. On May 13, Elon Musk said that Tesla will no longer accept payments in Bitcoin due to environmental factors.

Immediately the entire cryptocurrency market turned red. Many investors were skeptical of cryptocurrencies, and even hedge funds turned their backs on Wall Street and considered environmental considerations in their investment decisions.

On May 18, three major Chinese authorities – the Finance Association, the Bank of China Association, and the China Payments Association – urged domestic financial institutions and payment companies not to provide financial services.

A few hours after the crypto market crashed, Bitcoin, Ethereum and other platforms saw a 50% decline from their high in late April.

The Chinese government continued to issue further bans without stopping. In late September, the Central Bank of China announced that all crypto-related activity was illegal and ordered all exchanges to close.

The number of Bitcoin miners in China has dropped to almost zero within a few days. The US and Russia are the destinations of the camps leaving the mainland. The cryptocurrency market also suffered from the Chinese government’s bans.

New players

The cryptocurrency market, especially the decentralized financial (DeFi) sector, will witness the emergence of many strong growth platform projects in 2021 that are breaking Ethereum’s monopoly such as Solana (SOL) and Avalanche (AVAX).

The Ethereum network became unattractive as transaction fees became increasingly expensive, leading crypto users to look for alternatives. Solana came about in response to the above problem.

The Proof-of-Historical (PoH) consensus mechanism combined with Proof of Stake (PoS) and many new technologies enables the Solana network to execute up to 700,000 transactions per second for less than a fee. 0.00005 U.S. dollar compared to the average twelfth U.S. dollar of Ethereum.

Avalanche solves another Ethereum problem. Slow transaction speeds are an obsession with the users of the Ether ecosystem. The Avalanche Network is split into three separate blockchains, each of which solves a different problem. Thanks to this, the platform can validate transactions within a second. With Ethereum, the number usually ranges from 5 minutes to an hour.

In addition to the names mentioned above, Polkadot (DOT), Near (NEAR) or Cardano (ADA) should also become “the platform that Ethereum beats”. The competition between the projects makes the crypto market more diverse and more secure than letting Ethereum monopolize decentralized financing.

NFT and GameFi

It can be said that 2021 is the year of the NFT. This technology is used in areas such as digital images, music, and movies to protect copyright.

In addition, the gaming space also has strong NFT applications and has achieved great success. Axie Infinity, a blockchain technology application game developed by a Vietnamese team, which was marked with the highest market capitalization at this milestone. 9 Billion USD.

Sky Mavis’ springboard has opened a new development trend for small game studios around the world, particularly in Vietnam, when investment capital is continuously flowing into blockchain projects.

Facebook started the trend of Metaverse and Web3

On October 29th, Mark Zuckerberg officially changed the name of his company to Meta to show his strategy to popularize the Metaverse over the next 10 years. Facebook’s move is helping the virtual universe and Web3 get on the main stage after a period of silent development.

Projects that are tied to the metaverse, such as the blockchain games The Sandbox (SAND) or Decentraland (MANA) have grown by several hundred percent in just a few days. Thanks to the virtual universe, digital yachts became popular for the first time.

Large corporations like Microsoft, Nike and Adidas are not outside either. The list of companies that are taking part in the race to appear on the Metaverse to gain beautiful advertising positions in the virtual world continues to grow.

In addition to the main highlights mentioned above, other trends such as animal coins or some countries that accept Bitcoin in payment transactions have also contributed to the image of cryptocurrencies in the past year. Although the market faces many difficulties, we can assume that 2022 will be more successful.