2021 was a year of breakout in the crypto space for various reasons and many investors are completely thrilled that the price of Bitcoin attained an all time high of $68,789 in this time. Simultaneously, ETH (Ether) underwent a parabolic rally that witnessed its value gain 565% from Jan. With that, before this year ends, let us have a look at the top 5 cryptocurrency projects 2021 that shifted the crypto space completely.
Top Cryptocurrency Projects 2021 That Gained Huge Popularity
While 2021 was a banner year for large capital digital currencies, some of the highest profits and most effective developments arrived from the altcoin space where DeFi (decentralized finance) and NFT (non fungible tokens) increased by thousands of percentage and helped to grow in a new level of adoption and awareness for blockchain technology and digital currencies.
Here is a list of five cryptocurrency projects 2021 that made prominent contributions to the digital currency ecosystem this year.
The DEX (decentralized exchange) Uniswap (UNI) has possibly had the greatest effect on the crypto space as a whole since releasing in the summer of 2020, with the decentralized exchange seeing enough growth throughout this year as it aided to facilitate the launch of thousands of latest cryptocurrency projects by discarding the obstacles to launch that prevailed on centralized exchanges.
Data offered by Dune Analytics portray that Uniswap has been the principal DEX across the year and it has constantly observed more trading volume than all other decentralized exchanges combined.
Throughout 2021, this DEX led the area in development also, with the developers behind the protocol declaring the release of Uniswap v3 in March. The v3 upgrade has multiple protocol upgrades and it constructed the foundation to combine layer-two scaling solutions like Arbitrum and Optimism with Uniswap as a way to help decrease the costs of transaction and processing times for users.
Aave (AAVE) is a DeFi lending platform that enables users to store their tokens and lend them out as a process to earn a yield or guarantee them as collateral for borrowing another asset.
As the DeFi sector began to gain traction in early 2021, AAVE developed as a community favorite thanks to the broad swath of crypto assets aided and the backing from some well-funded players.
Over the course of 2021, AAVE broadened its capacity and arrived with the release of AAVE v2, which had support for Polygon, which is a layer-two scaling solution, and Avalanche (AVAX), which is a famous cross-chain blockchain network.
Curve Finance is a protocol that is focused towards stablecoins that uses an AMM (automated market maker) to handle liquidity on the platform and throughout the DeFi ecosystem.
Stablecoins have arrived as a foundational piece for the digital currency community as a whole in this year as they offer enough liquidity for the market and a safe way for traders who are seeking shelter during periods of high fluctuations. This is noted as one of the most crucial cryptocurrency projects 2021.
The evolving importance of stablecoins has helped the Curve protocol and its native CRV by boosting its consolidation of stablecoins into many of the popular DeFi protocols, that include the Convex Finance and Yearn.Finance ecosystem.
In spite of the fact that a prominent portion of the assets kept on the Curve protocol is stablecoins, the platform now ranks as the second largest protocol in terms of TVL behind AAVE, with data from Defi Llama portraying that $21.77 billion in value is presently locked in Curve vaults.
Axie Infinity is a P2E (play-to-earn) battling and trading game that enables participants to breed, collect, raise, battle, and trade NFT-based creatures known as Axies. This was a very important cryptocurrency projects 2021.
The P2E model developed as the latest fan favorite throughout the course of 2021 as it offers users the capability to earn a daily income along with their gameplay, which provides a few unique benefits when compared to the conventional pay-to-play model.
Alongside the increase in popularity of Axie Infinity came the latest all-time high for the platform’s native AXS token. As the token raided to new highs, the platform created a daily revenue of $17.55 million at its height on August 6.
Dogecoin (DOGE) is a proof-of-work open-source digital currency that leads the arena of “meme” coins that created headlines all across 2021.
While the cryptocurrency projects 2021 has few contributions on the development or technological front, regular shilling from the likes of Shark Tank star Mark Cuban or Tesla CEO Elon Musk helped to boost Doge into a 23,746% rally that witnessed the rise in value from $0.0031 on Jan. 1 to an all-time high of $0.74 on May 8. This is predicted to be the next big cryptocurrency.
On top of the profits seen in DOGE value, the token gained raised attention after it was declared that it would be used to help fund the release of a lunar satellite by SpaceX and the DOGE movement kicked off a meme-coin rally, breeding a bevy of copy-dog projects like Shiba Inu (SHIB) and Dogelon Mars (ELON).
2021 was a roller coaster ride for the digital currency space. This space gained immense popularity across the globe and it witnessed some of the all time highs as well. But that was not all. This space even saw the inauguration of some of the very famous projects. So in this article, we have discussed the top 5 cryptocurrency projects 2021 that changed this space to a great extent and gave hope for more upcoming crypto projects as well.