As most of us have been having fun with some R&R over Christmas break, Coinbase Cloud protocol specialist Elias Simos was scouring the online for probably the most attention-grabbing crypto charts of 2021: 69 of them to be actual.
Within the newest Round The Block podcast, we sit down with Elias and focus on a few of the most attention-grabbing knowledge factors from the 12 months, and what all of it means for the long run. (Excessive degree takeaways beneath)
Metaverse and sensible contract property outperform
Worth isn’t every thing, however the two prime performing property in 2021 are indicative of broader tendencies all year long. 2021’s greatest performing property have been:
- Metaverse gaming tokens
- Good 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 good points respectively. In the meantime, platform tokens from Polygon, Terra, Solana, and Fantom, all posted 8,000% good points or extra.
Provided that play-to-earn gaming had a breakout 12 months, and layer 1s not named Ethereum noticed robust adoption, these tendencies needs 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 worth of DeFi property doesn’t inform your complete story, nonetheless. TVL of Ethereum DeFi purposes confirmed super 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 normal
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, nonetheless, is that regardless of this migration away from Ethereum, most worth nonetheless sits in EVM (Ethereum Digital Machine) suitable environments.
Keep in mind that the EVM is actually the mind of Ethereum that performs computations for the community. When different Layer 1s undertake the EVM, it makes deploying current 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 on) counsel that an ordinary is forming across the EVM. This could finally maintain Ethereum because the gravitational middle of the sensible contracting world, as ETH purposes and property can 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 an ordinary popularized by Cosmos, that lets builders construct utility particular blockchains which are able to interoperating with each other.
Constructing app-specific chains previously got here with important alternative price, as a result of they have been minimize 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 make the most of customizability that these chains provide 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 electronic mail addresses that you would be able to ship cash to (e.g. Jimbo.eth). After 5 years in improvement, the undertaking 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 robust 12 months, evident by the rising utilization in key items of DAO infrastructure. Gnosis Secure, which is the preferred multisig pockets DAOs use to handle their treasuries, noticed 3x development in each the variety of Safes and transactions executed in 2021. Snapshot, a device that helps DAOs execute off-chain votes with on-chain verification, exhibited robust development as nicely.
Exercise on the dominant platform for NFTs tells you all you could 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 nonetheless, features a flashloan powered $500M wash sale — a strong reminder of how a lot subjectivity there may be in on-chain knowledge.
The second most notable NFT undertaking of the 12 months was Bored Ape Yacht Membership, which went from a distinct segment group to the movie star 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 (worth of the most affordable NFT within the assortment) momentarily flipped the CryptoPunks ground.
Within the warmth of latest issuances flooding the market, and older NFT collections attaining billion greenback market caps, the typical worth of NFTs altering fingers did a 150x from 0.1 ETH to roughly 15 ETH by 12 months finish.
One of the vital attention-grabbing NFT launches of the 12 months was Loot (lined right here), which let anybody mint 1 of 8,000 NFTs that would type the premise of a Dungeons and Dragon fashion RPG recreation. Preliminary pleasure was skyhigh, earlier than tapering off 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 information 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 gasoline charges.
Extra in Elias’s epic thread
Past being chock-full of illuminating knowledge factors on the 12 months in crypto and Web3, the total thread underscores the fantastic thing about on-chain knowledge and the elevated maturity of the trade. The power for one particular person to place collectively a dataset this wealthy is a testomony to the entire nice knowledge suppliers the trade now has at our disposal.