Cryptocurrency market in 2021: Bitcoin climbs to a record leading to NFT and memecoin craze

2021 is a very special year as the coronavirus almost dominates the headlines and all of our lives. And the crypto world has had an equally turbulent 12 months. Bitcoin hit an all-time high just 9 months after falling 51% in March, while Ethereum 2.0 has begun its launch process after years of development.

In particular, the craze for NFT, Memecoin and Metaverse has made the digital market busier than ever. Here are the fundamental views of the crypto market in 2021.

Cryptocurrency market in 2021: Bitcoin hits a record

Bitcoin has the largest market capitalization in the world and ranks second in terms of coin popularity in 2021. Bitcoin hit 145,519,992 times as much in 2021, according to coinmarketcap. Bitcoin has a total market cap of $ 959,657,244,574, which has seen its price surge over the course of the year. The lowest price of BTC recorded on January 1 was $ 28,803.59 while the highest it hit was $ 68,789.63 on November 10, a difference of 138.8%.

Bitcoin started the year at nearly $ 29,000 after rising for three months, climbing from $ 10,000 last October, thanks in part to Michael Saylor who paved the way for institutions and bought Bitcoin. There is also the push from Elon Musk through comments on Twitter.

These rallies and more across the board helped crypto market cap surpass the $ 1 trillion mark, an incredible feat in such a short amount of time.

However, these rallies could not be sustained for long. When China’s mining ban was rolled out across the country in May and regulations on virtual currency tightened, the leading cryptocurrency suffered a catastrophic drop in prices. Immediately afterwards, Elon’s sudden turnaround came when the leading electric car maker refused to accept Bitcoin as a means of payment.

After the continual falls, there was a time when it seemed like our virtual currency brother couldn’t get up. But all of a sudden, after institutional purchases and an institutional boost, Bitcoin bounced back after El Salvador was legalized, spectacularly hitting a new high of $ 68,789.63 on May 10th.

Crypto market 2021: Ethereum is the most powerful coin of the year

Ethereum, a decentralized open source blockchain system with its own cryptocurrency, ranks 81,358. Fifth place in coinmarketcap.com’s most watched cryptocurrencies 080 times a year in 2021.

2021 has proven to be a happy year for the world’s second largest cryptocurrency, Ether (ETH), whose value has quadrupled in 12 months.

Ether has surpassed the outstanding appreciation of Bitcoin and achieved a higher share of the total crypto market by capitalization. While the broader crypto markets enjoyed a relatively optimistic year, ETH’s rise in value came in parallel with the upgrade to Ethereum’s core protocol and formed the final pillars for the process. Transition to the proof-of-stake consensus protocol by 2022.

Several Ethereum Improvement Proposals (EIPs) have become the focus of attention of the broader Ethereum community and have proven to be critical to the “consolidation” with the Proof-of-Stake Beacon Chain, which will take place next year in 2022.

Cryptocurrency trader and analyst Benjamin Cowen has announced Ethereum’s price prediction for 2022.

“The trick is, this can’t go on forever, but eventually it gets into a bear market. So I can imagine that we are starting a kind of upward movement. I don’t know how high it will go. I assume $ 10,000 is a reasonable goal. We can even get as high as $ 20,000. It’s hard to say … I can imagine that the sideways trend will continue for a while, especially since Bitcoin looks a bit weak at the moment. “

In early November, Mr. Rahul Rai, a cryptocurrency millionaire and manager at BlockTower Capital mutual fund, said Ethereum will outperform Bitcoin in terms of market capitalization in the first half of 2022.

Rahul Rai is a manager at BlockTower Capital, a former Morgan Stanley analyst and founder of the crypto mutual fund Gamma Point Capital (later acquired by BlockTower Capital for $ 35 million). .

Cryptocurrency Market 2021: Memecoin Fever

While Bitcoin remains a target for investors to dip their toes in crypto, a flurry of new tokens – some may jokingly say – has entered the field.

“Memecoins” – a collection of coins from dogecoins to Shiba Inu and octopus fishing games from web culture – are often rarely used in practice.

Top Meme Coin by Market Cap Dogecoin (DOGE) is the third most highly regarded cryptocurrency in 2021. It has been viewed 107,402,681 times and has a total market cap of $ 25,238,754,379. SpaceX and Tesla CEO Elon Musk tweeted several times over the year in favor of Dogecoin.

Dogecoin, launched as a spin-off from Bitcoin in 2013, rose more than 12,000% to an all-time high in May before falling nearly 80% in mid-December.

The Shiba Inu, which refers to the Dogecoin-like Japanese breed, has quickly become the top 10 digital currencies.

The coin-meme Shiba Inu (SHIB) tops Coinmarketcap.com’s list of the most popular cryptocurrencies in 2021. Shiba Inu has a total market cap of $ 20,942,930,262. In October of this year, the SHIB token rose more than 216% in a week, hitting a new all-time high of $ 0.000088. It is noteworthy that Shiba Inu has watched 188 019 378 times throughout the year.

The Memecoin phenomenon is linked to the “Wall Street Betting” movement, where online retailers look to corner stocks like GameStop Corp. combine and force short positions in hedge funds.

Many traders – who are often stuck at home with cash during the coronavirus lockdown – have turned to cryptocurrency even as regulators warned of volatility.

“It’s all about fundraising,” said Joseph Edwards, chief research officer at crypto broker Enigma Securities.

“Although assets like DOGE and SHIB can themselves be purely speculative, the money in them comes from the ‘Why shouldn’t I cash my savings?

Cryptocurrency Market 2021: NFT is “Word of the Year”

As Memecoin trading goes viral, another, previously hidden corner of the crypto complex has also taken the spotlight.

In 2021, NFTs broke their niche and have become one of the hottest technology trends (and buzzwords) of the year. On November 24th, NFT was named “Word of the Year” by Collins Dictionaries.

Non-fungible tokens (NFTs) – chains of code stored on a digital blockchain ledger that represent sole ownership of works of art, videos, or even tweets – exploded in 2021.

In March, a digital work of art by American artist Beeple sold for nearly $ 70 million at Christie’s and is one of the three most expensive works by an artist to be auctioned.

Third quarter sales reached $ 10.7 billion (approximately Rs 79690.39), an increase of more than eight times over the previous three months. When the volume peaked in August, the prices of some NFTs rose so quickly that speculators could “turn them around” for profit in days or even hours.

The surge in cryptocurrency prices that created a new group of crypto-rich investors, as well as predictions about the future of the online virtual world, in which NFT is central, have helped to explode the boom.

Cryptocurrency and the popularity of NFTs could also be related to a decline in out-of-reach social mobility, said John Egan, CEO of BNP Paribas-owned research firm L’Atelier.

Although some of the world’s leading brands, from Coca-Cola to Burberry, have sold NFTs, the patchwork of regulation still means that larger investors need to be largely clear.

“I don’t see a situation where licensed financial institutions are actively and aggressively trading these digital assets in the next three years,” said Egan.

It can be seen that despite the continuous ups and downs, 2021 is an unforgettable year and has many milestones for the crypto market. Bitcoin’s growing popularity and the explosion of the NFT world have opened a bright future for the digital market in 2022.

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