As most of us have been having fun with some R&R over Christmas break, Coinbase Cloud protocol specialist Elias Simos was scouring the net for probably the most attention-grabbing crypto charts of 2021: 69 of them to be precise.
Within the newest Round The Block podcast, we sit down with Elias and focus on among the most attention-grabbing information factors from the 12 months, and what all of it means for the long run. (Excessive degree takeaways under)
Metaverse and sensible contract belongings outperform
Worth isn’t all the things, however the two high performing belongings in 2021 are indicative of broader traits all year long. 2021’s greatest performing belongings have been:
- Metaverse gaming tokens
- Sensible contract platform tokens
The governance tokens of gaming worlds Axie Infinity (AXS) and The Sandbox (SAND) every posted 16,000 and 13,000 p.c positive aspects respectively. In the meantime, platform tokens from Polygon, Terra, Solana, and Fantom, all posted 8,000% positive aspects or extra.
On condition that play-to-earn gaming had a breakout 12 months, and layer 1s not named Ethereum noticed sturdy adoption, these traits ought to be of no shock. Now let’s dig a bit deeper.
The state of Layer 1s
Ethereum’s native token (ETH) did a modest 2X over the 12 months, whereas it was considerably of a tough 12 months for Ethereum DeFi blue chips, with the DeFiPulse index down 80% over the 12 months vs ETH.
The value of DeFi belongings doesn’t inform your entire story, nevertheless. TVL of Ethereum DeFi purposes confirmed great development over the 12 months, and the variety of distinctive Ethereum addresses interacting with DeFi protocols 4x’ed.
Regardless, ETH killers and sidechains received the 12 months when measured by development of total market share.
The nice migration & the EVM commonplace
In Might, there was $200M sitting in Ethereum bridges. That quantity climbed to $20B by the tip of the 12 months, underscoring the nice migration of worth from Ethereum to different ecosystems.
The flipside, nevertheless, is that regardless of this migration away from Ethereum, most worth nonetheless sits in EVM (Ethereum Digital Machine) suitable environments.
Do not forget that the EVM is basically the mind of Ethereum that performs computations for the community. When different Layer 1s undertake the EVM, it makes deploying present purposes on new networks simpler for builders, along with making it simpler for customers emigrate to those new chains.
The dominance of worth on EVM suitable chains (Avalanche, Polygon, and so forth) counsel that a normal is forming across the EVM. This could finally hold Ethereum because the gravitational middle of the sensible contracting world, as ETH purposes and belongings will probably be natively interoperable with most different chains.
Rise of the app chains
Whereas EVM chains nonetheless dominate the panorama, the tip of 2021 noticed an increase in worth on Tendermint chains. Recall that Tendermint is a normal popularized by Cosmos, that lets builders construct utility particular blockchains which can be able to interoperating with each other.
Constructing app-specific chains previously got here with important alternative price, as a result of they have been reduce off from most liquidity and customers. With the development of Tendermint chains like Osmosis (AMM), Umee (lending), and Stargaze (NFTs), that’s turning into much less of a difficulty.
Now that these app particular chains have a widening array of use circumstances and liquidity that they’ll interoperate with, search for extra builders to reap the benefits of customizability that these chains supply in 2022.
The ENS airdrop + DAOs
In 2021, ENS reminded everybody of Web3’s native person acquisition technique: the airdrop.
ENS (Ethereum Identify Service) addresses are greatest considered e mail addresses you could ship cash to (e.g. Jimbo.eth). After 5 years in growth, the mission shifted to a DAO mannequin, and airdropped ENS governance tokens to each person with an ENS deal with.
After the drop in November, consciousness of ENS and registration of .eth addresses skyrocketed.
Because the ENS DAO treasury collects income from new .eth registrations, income for the newly minted ENS DAO treasury ramped up considerably: one other testomony to how a lot a nicely orchestrated airdrop can transfer the needle.
Past ENS, DAOs had a powerful 12 months, evident by the rising utilization in key items of DAO infrastructure. Gnosis Secure, which is the most well-liked multisig pockets DAOs use to handle their treasuries, noticed 3x development in each the variety of Safes and transactions executed in 2021. Snapshot, a instrument that helps DAOs execute off-chain votes with on-chain verification, exhibited sturdy development as nicely.
Exercise on the dominant platform for NFTs tells you all you should know concerning the breakout 12 months NFTs loved.
OG NFT CryptoPunks noticed 60x YoY development, reaching a complete quantity of 650K ETH, or $1.7B at present costs. This determine nevertheless, features a flashloan powered $500M wash sale — a strong reminder of how a lot subjectivity there’s in on-chain information.
The second most notable NFT mission of the 12 months was Bored Ape Yacht Membership, which went from a distinct segment group to the superstar NFT of selection, together with the likes of Steph Curry, Shaq, Justin Bieber, Jimmy Fallon, Paris Hilton, amongst others. At one level the BAYC ground (value of the most affordable NFT within the assortment) momentarily flipped the CryptoPunks ground.
Within the warmth of recent issuances flooding the market, and older NFT collections reaching billion greenback market caps, the common value of NFTs altering fingers did a 150x from 0.1 ETH to roughly 15 ETH by 12 months finish.
Some of the attention-grabbing NFT launches of the 12 months was Loot (lined right here), which let anybody mint 1 of 8,000 NFTs that would kind the idea of a Dungeons and Dragon type RPG recreation. Preliminary pleasure was skyhigh, earlier than truly fizzling out as time went on.
Whereas Loot’s flame could have dimmed, it was nonetheless a landmark 12 months for NFT primarily based gaming, with the breakaway success of Axie Infinity bringing play-to-earn and GameFi narratives to the forefront. As the information reveals, Axie Infinity NFT quantity dwarfs that of any prior NFT primarily based recreation.
Lastly, whereas Ethereum was the middle of the NFT present, marketplaces look like arising throughout a number of chains. The info reveals that decrease charge environments are enabling several types of person exercise. Solana’s Magic Eden, for instance, has extra transactions than OpenSea since customers are unencumbered by exorbitant fuel charges.
Extra in Elias’s epic thread
Past being chock-full of illuminating information factors on the 12 months in crypto and Web3, the total thread underscores the great thing about on-chain information and the elevated maturity of the trade. The power for one particular person to place collectively a dataset this wealthy is a testomony to all the nice information suppliers the trade now has at our disposal.