Crypto 2021 – that was the year: volatility that had an impact on the market


2021 has been the most amazing year in the history of crypto. According to Pitchbook data, the total market capitalization of cryptocurrencies will reach $3 trillion (approximately Rs 2,25,36,058 crore) in 2021 as venture capital funds pumped in $30 billion (approximately Rs 2,25,346 crore) into the market. The year. The Top Five Bullish Crypto Events of 2021 were:

  1. In February, Tesla announced the purchase of $1.5 billion (about Rs 11257 crore) in bitcoin. It also said that t will take payment in bitcoin. With this, the total market capitalization of bitcoin has crossed $1 trillion (about Rs 75,04,768.69 crore) for the first time.
  2. In March, a non-fungible token (NFT) of digital artist Beeple’s (Mike Winkelman) “Everydays: The First 5000 Days” was auctioned for over $69 million (about Rs 518 crore).
  3. In April, crypto exchange Coinbase was listed directly on the Nasdaq stock exchange. Its valuation reached $112 billion (about Rs 8,40,534 crore).
  4. In June, El Salvador President Nayib Bukele announced plans to make bitcoin legal tender.
  5. In September, El Salvador officially adopted bitcoin as legal tender.

Reverse

Here’s how some of the top cryptos fared in 2021:

cryptocurrency January 1, 2021
(rounded off)
December 25, 2021
(rounded off)
Bitcoin $29,374 (approx Rs 22.06 lakh) $51,000 (approximately Rs 38.30 lakh)
ether $730 (approx Rs 54,833) $4,000 (approximately Rs 3 lakh)
Binance Coin $38 (about Rs 2,853) $550 (about Rs 41,308)
solana $2 (about Rs.150) $190 (approx Rs 14,270)
cardano $0.2 (about Rs 15) $1.5 (about Rs 112)
Earth $0.7 (about Rs 53) $97 (approximately Rs 7,286)
Avalanche $4 (about Rs.300) $116 (approximately Rs 8,709)
polka dot $8 (about Rs.600) $29 (approx Rs 2,178)
dogecoin $0.006 (approx. Rs. 0.45) $0.2 (about Rs 15)
polygon $0.02 (about Rs 1.5) $2.5 (approx. Rs. 188)

Source: CoinMarketCap.com

In November, the total market capitalization of cryptocurrencies crossed $3 trillion (about Rs 2,25,36,058 crore) for the first time.

2021 was a good year for meme coins, especially Dogecoin and Shiba Inu.

We have also seen a flurry of news about Central Bank Digital Currency (CBDC), with China leading the way.

A major report found that 55 of the top 100 banks in the world have some sort of blockchain or crypto exposure in their portfolios.

down side

On the bearish side, the largest crypto exchange Binance suffered several losses and faced a ton of legal problems in several countries.

The year also saw a large number of rug pulls, hacks and scams. Reuters estimates that decentralized finance (DeFi) platforms lost more than $10 billion (about Rs 75,047 crore) due to fraud and scams.

The strangest was the $643 million (approximately Rs 4,825 crore) hack on the Poly Network. The hacker returned all the money!

The squid game token was a big rig, zooming in on coverage by top media houses like CNBC, Forbes, Business Insider, etc. to a price of around $3,000.

One of the biggest scams, $3.6 billion (approximately Rs 27,017 crore), was perpetrated by brothers Rais and Amir Qazi, who operated the South African company Africrypt.

A crypto phishing scam targeted users of crypto wallets MetaMask and Phantom and crypto swap platform PancakeSwap.

The US law enforcement agency, the FBI, warned of frauds taking advantage of crypto ATMs and QR codes.

Other disadvantages include:

  • Liquidity pool provider Monox: $30 million (approximately Rs 225 crore)
  • BadgerDAO, a decentralized autonomous organization: $120 million (approximately Rs 900 crore)
  • DeFi Protocol bZx: $55 million (approximately Rs 412 crore)
  • AnubisDAO Phishing Attack: $60 million (approx Rs 450 crore)

Solana had its share of problems with the blockchain. First, it went down for 17 hours and later suffered a Distributed Denial of Service (DDoS) attack.

Bitcoin SV suffered multiple 51 percent attacks.

We also saw the big crypto crash in 2021 – Internet Computer (ICP) down 93 percent in just one month, IRON Titanium Token (TITAN) from $52.46 (approximately Rs 3,937) to $0.00000003 (approximately Rs 0.0002) in just 10 days done. And SafeDollar (SDO), a stablecoin suddenly went to zero.

Two crypto exchanges collapsed in Turkey. The first was Thodex, whose CEO disappeared with $2 billion (about Rs 15,009 crore) of investors’ funds. The second was Vebitcoin, which halted activities after facing “financial pressure”. Two Australian crypto exchanges, Mycryptowallet and ACX, also shut down and their investors lost millions.

Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him on LinkedIn.


Interested in cryptocurrency? We discuss all things Orbital with WazirX CEO Nischal Shetty and WeekendInvesting Founder Alok Jain on the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, business advice or any kind of advice or recommendation given or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.

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