cryptocurrency: Crypto year at a glance: Ethreum outperformed in 2021, Metaverse is new DeFi

New Delhi: 2021 was an excellent year for the cryptocurrency space. Right from institutions getting involved with cryptocurrencies and raising millions to invest in the space to the booming NFTs.

Ethereum outperformed its sole larger peer Bitcoin in 2021. One of the factors that led to such a meteoric outperformance was the EIP-1559 update, which reduced Ether’s inflation rate.

Ethereum zoomed over 425 per cent in 2021, whereas Bitcoin jumped only 66 per cent. The benchmark index of the United States, S&P 500, advanced 31 per cent, whereas gold marginally lowered.

Though, the fundamentals of the largest crypto token have also started to strengthen. Based on a Glassnode report, only 18.34 per cent of the total circulating supply is currently at a loss.

Despite the current price action, the long-term investor’s holdings have increased by 1.84 million Bitcoins, while the short-term holder’s supply declined by 1.42 million Bitcoins this year.

A net of 67,800 Bitcoins left the exchange in 2021 alone. Based on the above two observations, the hodlers are increasing, and the supply keeps dropping.

China’s ban has significantly dropped the Bitcoin hash rate. However, it has not only recovered but increased by 27% over the year. This shows that not only did it survive an attack but also has surpassed its previous statistic.

Metaverse is the new DeFi

Metaverse has been in the limelight in the last month of 2021. Since Facebook changed its name to Meta, the existing metaverse space has shot up in value.

The future of Metaverse and NFTs is looking bright as Ubisoft, a video game company responsible for franchises such as Assassin’s Creed, Far Cry, For Honor, Just Dance, Prince of Persia, Rabbids, Rayman, Tom Clancy’s, and Watch Dogs is trying to move towards the “ready player one” vision, and other commercial goliaths such as Adidas, Mcdonalds, Vodafone launching their NFTs.

Top gainers for the week:

  • Oasis Network (ROSE): 33.88%
  • XDC Network (XDC): 30.36%
  • SushiSwap (SUSHI): 22.47%
  • Cosmos (ATOM): 18.05%
  • Monero (XMR): 17.56%

Top losers for the week:

  • The Sandbox (SAND): 13.41%
  • Holo (HOT): 12.20%
  • Maker (MKR): 11.54%
  • Axie Infinity (AXS): 11.39%
  • Enjin Coin (ENJ): 11.14%

(Note: Data as of 12.20 PM IST, January 02, 2022; Source: Only top 100 tokes in terms of the marketcap have been considered for the report)

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