Crypto was one of the most trending topics at different times in 2021 with DogeCoin and Ethereum Price being in the top 10 searches. It created huge global interest and opened up the possibility of digital currency in the future.
2021 saw a large number of new Crypto Coins. Around 4,800 new cryptocurrency coins were introduced in 2021.
The top two cryptocurrencies BTC and ETH started the year with the lowest price, BTC around $29K and ETH around $730. As the year progressed prices gradually started to rise, BTC reaching $50K in Feb and $60K in April, both all-time highs at that time. ETH reached over $4K in May.
In mid of the year prices again dropped and continued to fall, reaching the almost same price as it was at the beginning of the year. Prices again started to gradually increase and reached all-time highs in October. If you see the charts, the second half of the year is somewhat a duplication of the first half.
Elon Musk had a great influence on cryptocurrency this year, he had an impact on price variations on some of the coins. Also, a few new coins started inspired by his name and his dog name too. One way Tesla’s take on cryptocurrency influenced its price change. BTC surged when Tesla announced they are going to accept it as payment, and later in the year price went down when there was speculation of selling BTC.
ETH 2.0 was released in December 2020 and introduced a new concept of staking. ETH changed to proof-of-stake from proof-of-work protocol with ETH 2.0, and that is how the staking phenomenon started. We have many staking pools now and also offering APR to stake. [Interested to know more about mining vs staking, please read my blog, Crypto Mining – is it too late now?]
Other altcoins which were in news in 2021 are Dogecoin and Shiba INU. Dogecoin reached an all-time high of around $0.73 in May, there was Tesla’s influence here again. Dogecoin almost increased 16K% from January ($0.004615) to its all-time high in May ($0.737567). Once Tesla announced it is not going to accept it as payment, the price started declining and has been fluctuating near $0.2 since then.
Shiba INU reached an all-time high of around $0.00008 in October, and “Can Shiba INU reach 1 cent?” [Read More: Shiba INU Can it reach 1 cent?] was trending at that time. It’s been dropping since then and continues to fall.
NFTs, interest in NFTs [Read more: What are NFTs?] increased in 2021. We saw increased use of NFTs in art, music, and collectibles. Many virtual world games were developed with NFTs as a medium of trading. The number of marketplaces emerged for NFTs. Currently, it has become the known acronym for any collectible or unique items. NFTs will be the future standard for digital collectibles.
Overall 2021 had major ups and downs in the crypto world. Investors made huge profits and also had losses if invested at the wrong time. But this year did increase cryptocurrency knowledge among people, gave more ideas about NFTs. As mentioned this year for sure opened up the mindset for a possibility of digital currency in the future.
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Price Charts Source: CoinGecko
Image Source: Pexels