Crypto 2021 – that was the year: ups and downs that influenced the market

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2021 was the most amazing year in crypto history. According to PitchBook Data, the total market cap of cryptocurrencies reached $ 3 trillion (about Rs.2.25.36.058 billion) in 2021 as venture capital funds pumped $ 30 billion (about Rs.2.25.346 billion) into the market a year ago. The top five bullish crypto events of 2021 were:

  1. In February, Tesla announced the purchase of $ 1.5 billion (about Rs.11,257 billion) in Bitcoin. It also said it would accept payments in Bitcoin. As a result, Bitcoin’s total market capitalization exceeded $ 1 trillion for the first time ever.
  2. In March, a Non-Fungible Token (NFT) from “Everydays: the First 5000 Days” by the digital artist Beeple (Mike Winkelmann) was auctioned for over 69 million dollars (around 518 billion rupees).
  3. In April, the Coinbase crypto exchange was listed directly on the Nasdaq exchange. Its valuation peaked at $ 112 billion (approximately Rs.840.534 billion).
  4. In June, El Salvador’s President Nayib Bukele announced plans to make Bitcoin legal tender.
  5. In September El Salvador officially introduced Bitcoin as legal tender.

The top

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

Cryptocurrency January 1, 2021
(Rounded)
December 25, 2021
(Rounded)
Bitcoin $ 29,374 (approximately Rs. 22.06 lakh) $ 51,000 (approximately Rs. 38.30 lakh)
ether $ 730 (approximately Rs. 54,833) $ 4,000 (approximately Rs. 3 lakh)
Binance coin $ 38 (approximately Rs. 2,853) $ 550 (approximately 41,308 rupees)
Solana $ 2 (about 150 rupees) $ 190 (approximately 14,270 rupees)
Cardano $ 0.2 (about 15 rupees) $ 1.5 (about 112 rupees)
Terra $ 0.7 (about 53 rupees) $ 97 (approximately Rs. 7,286)
avalanche $ 4 (about 300 rupees) $ 116 (approximately Rs. 8,709)
Speckle $ 8 (about 600 rupees) $ 29 (approximately 2,178 rupees)
Dogecoin $ 0.006 (approximately Rs. 0.45) $ 0.2 (about 15 rupees)
Polygon $ 0.02 (about 1.5 rupees) $ 2.5 (about 188)

Source: CoinMarketCap.com

In November, the total market capitalization of cryptocurrencies exceeded a total of $ 3 trillion (about 2.25.36.058 billion rupees) for the first time.

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

We’ve also seen a flurry of news about central bank digital currencies (CBDCs), with China leading the way.

A well-known report found that 55 of the top 100 banks in the world have some form of blockchain or crypto exposure in their portfolios.

The disadvantage

On the bearish side, the largest crypto exchange Binance suffered a lot of failures and also faced a ton of legal problems in many countries.

The year also saw a massive number of rug pulls, hacks, and scams. Reuters estimates that decentralized finance (DeFi) platforms lost over $ 10 billion (approximately Rs 75,047 billion) to fraud and fraud.

The strangest thing was the massive $ 643 million (roughly 4,825 crore rupees) hack on the Poly Network. The hacker returned all the funds!

A huge rug pull was the Squid Game token, which has soared to nearly $ 3,000 thanks to coverage from top media houses like CNBC, Forbes, Business Insider, etc.

One of the biggest scams, $ 3.6 billion (roughly Rs 27.017 billion), was carried out by brothers Raees and Ameer Cajee, who ran the South African company Africrypt.

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

The US law enforcement agency FBI warned of scams using crypto ATMs and QR codes.

Other losses are:

  • Liquidity pool provider MonoX: $ 30 million (approx. Rs.225 billion)
  • Decentralized Autonomous Organization BadgerDAO: US $ 120 million (approximately Rs. 900 billion)
  • DeFi protocol bZx: $ 55 million (approximately 412 billion rupees)
  • AnubisDAO phishing attack: $ 60 million (~ 450 billion rupees)

The Solana blockchain had its share of problems. It first failed for 17 hours and later suffered a Distributed Denial of Service (DDoS) attack.

Bitcoin SV has been exposed to multiple 51 percent attacks.

We also saw major crypto crashes in 2021 – Internet Computer (ICP) lost 93 percent in just over a month, IRON Titanium Token (TITAN) rose from $ 52.46 (about Rs.3,937) to $ 0.00000003 (about $ 0) , 0002 rupees) in just 10 days and SafeDollar (SDO) a stable coin suddenly went to zero.

Two crypto exchanges collapsed in Turkey. The first was Thodex, whose CEO went missing with $ 2 billion in investor money. The second was Vebitcoin, which ceased operations after being exposed to “financial strain”. Two Australian crypto exchanges, Mycryptowallet and ACX, have also closed, costing their investors millions.

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

Interested in cryptocurrency? We discuss everything about crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music, and anywhere you get your podcasts.

Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended as financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for losses that may arise from an investment based on perceived recommendations, forecasts or other information contained in the article.

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