Year of the Dog(e)? The Cryptocurrency Market of 2021

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In the cryptocurrency world, people expect the unexpected. Even by the unique standards of the cryptocurrency market, this year has been a wild year to witness.

The market has seen a massive influx of institutional capital, and in many ways it has become more flexible and mature. But that same market has seen Dog Memes amassing nearly $100 billion in market capitalization with thousands of imitators — excuse me mixed metaphor — gnawing its tail.

One thing is clear: Cryptography has become mainstream and has become an essential part of the zeitgeist. While there is much more room for people to enter the market – only 16% of Americans say they have invested in cryptocurrency – it is an integral part of popular consciousness and not just an exciting new trend. Everyone is talking about it, from American media personality and businesswoman Paris Hilton to your crazy uncle on Thanksgiving.

Here are some of the major takeaways of the year.

All Hail King(s)

Bitcoin (CRYPTO: BTC) is still ahead and has surpassed the $1 trillion market cap. After starting the year in the middle of a significant increase period from around $10,000 in October 2020, Bitcoin reached an all-time high of around $65,000 in April of this year before settling at around $30,000 for a few months this summer. It reached an all-time high of $68,789 on November 10, and at the time of writing this article is standing around $50,000.

Ethereum (CRYPTO:ETH) It’s also been a big year, with some believing that significant “volatility” (Ether exceeding Bitcoin’s market cap) could occur. Although this did not happen, it did provide some serious ground. Ether started the year with a market capitalization of $83.4 billion, which has grown 6.5 times to $544.4 billion today. Bitcoin nearly doubled its market value in the same time period.

DeFi growth

Much of Ethereum’s success has come from the hundreds of Decentralized Finance (DeFi) projects built on its platform. DeFi projects have led the success of so-called “Ethereum killers” like Solana (CRYPTO: SOL) or dotted (CRYPTO: DOT). DeFi applications have matured and people are starting to see the disruptive potential of this space. DeFi’s largest market capitalization has grown exponentially this year to $180 billion.

NFTs Gone Wild

The market for non-fungible tokens exploded. OpenSea, the largest market for NFT, exceeded $3 billion in trading volume in the third quarter. This is close to the likes eBay Inc. (Nasdaq: eBay). Jack Dorsey, former Twitter Inc. (NASDAQ:TWTR) CEO, he sold his first-ever tweet for $2.9 million. Sotheby’s just auctioned off CryptoPunk for $11.75 million.

puppy power

You can’t talk about Crypto in 2021 without talking about it Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: gray hair). The former climbed to the top ten with the help of The Godfather, Tesla Corporation (NASDAQ:TSLA) CEO Elon Musk rode a wave of Internet-flavored populism bleeding from GameStop Corp. (NYSE: GME) Epic. Determined to follow suit, SHIB raced to the top, outpacing DOGE for some time.

here to stay

One of the most exciting and optimistic signs of the continued growth of the market has been the influx of institutional capital. Huge traditional players are investing in space, and many are about to follow suit. Large enterprises such as UPS Group AG (NYSE: UBS) and Citigroup Inc. (NYSE: C) has Bitcoin holdings. This trend is accelerating. According to Bloomberg, more than $17 billion in institutional capital has been invested this year alone. A Nickel Digital Asset Management survey shows that 82% of these investors are looking to increase their exposure in the next two years.

democratize access

Cryptocurrency has always had a populist streak. It was intended to circumvent traditional power structures and achieve financial freedom for the people. Many crypto projects and companies serving the market still believe in this goal. Companies involved in the areas helping this democratization and access to cryptocurrency have also become stars of the year. Could be one of the examples Bitcoin Warehouse The world’s largest operator of Bitcoin ATMs, which it believes can help more people access the power of crypto they would not otherwise have with over 6,500 crypto ATMs located across the United States and Canada.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investment advice.