As most of us have been having fun with some R&R over Christmas break, Coinbase Cloud protocol specialist Elias Simos was scouring the net for probably the most fascinating crypto charts of 2021: 69 of them to be precise.
Within the newest Round The Block podcast, we sit down with Elias and focus on among the most fascinating information factors from the 12 months, and what all of it means for the longer term. (Excessive degree takeaways beneath)
Metaverse and good contract property outperform
Worth isn’t every part, however the two prime performing property in 2021 are indicative of broader tendencies all year long. 2021’s finest performing property have been:
- Metaverse gaming tokens
- Sensible contract platform tokens
The governance tokens of gaming worlds Axie Infinity (AXS) and The Sandbox (SAND) every posted 16,000 and 13,000 % features respectively. In the meantime, platform tokens from Polygon, Terra, Solana, and Fantom, all posted 8,000% features or extra.
Provided that play-to-earn gaming had a breakout 12 months, and layer 1s not named Ethereum noticed sturdy adoption, these tendencies needs to be of no shock. Now let’s dig a bit deeper.
The state of Layer 1s
Ethereum’s native token (ETH) did a modest 2X over the 12 months, whereas it was considerably of a tough 12 months for Ethereum DeFi blue chips, with the DeFiPulse index down 80% over the 12 months vs ETH.
The worth of DeFi property doesn’t inform your entire story, nevertheless. TVL of Ethereum DeFi functions confirmed great progress over the 12 months, and the variety of distinctive Ethereum addresses interacting with DeFi protocols 4x’ed.
Regardless, ETH killers and sidechains gained the 12 months when measured by progress of general market share.
The good migration & the EVM normal
In Could, there was $200M sitting in Ethereum bridges. That quantity climbed to $20B by the tip of the 12 months, underscoring the nice migration of worth from Ethereum to different ecosystems.
The flipside, nevertheless, is that regardless of this migration away from Ethereum, most worth nonetheless sits in EVM (Ethereum Digital Machine) suitable environments.
Keep in mind that the EVM is actually the mind of Ethereum that performs computations for the community. When different Layer 1s undertake the EVM, it makes deploying current functions on new networks simpler for builders, along with making it simpler for customers emigrate to those new chains.
The dominance of worth on EVM suitable chains (Avalanche, Polygon, and many others) counsel that a regular is forming across the EVM. This could finally hold Ethereum because the gravitational heart of the good contracting world, as ETH functions and property might be natively interoperable with most different chains.
Rise of the app chains
Whereas EVM chains nonetheless dominate the panorama, the tip of 2021 noticed an increase in worth on Tendermint chains. Recall that Tendermint is a regular popularized by Cosmos, that lets builders construct utility particular blockchains which are able to interoperating with one one other.
Constructing app-specific chains up to now got here with vital alternative value, as a result of they have been minimize off from most liquidity and customers. With the progress of Tendermint chains like Osmosis (AMM), Umee (lending), and Stargaze (NFTs), that’s turning into much less of an subject.
Now that these app particular chains have a widening array of use instances and liquidity that they’ll interoperate with, search for extra builders to make the most of customizability that these chains provide in 2022.
The ENS airdrop + DAOs
In 2021, ENS reminded everybody of Web3’s native person acquisition technique: the airdrop.
ENS (Ethereum Title Service) addresses are finest considered electronic mail addresses you could ship cash to (e.g. Jimbo.eth). After 5 years in growth, the undertaking shifted to a DAO mannequin, and airdropped ENS governance tokens to each person with an ENS tackle.
After the drop in November, consciousness of ENS and registration of .eth addresses skyrocketed.
For the reason that ENS DAO treasury collects income from new .eth registrations, income for the newly minted ENS DAO treasury ramped up considerably: one other testomony to how a lot a effectively orchestrated airdrop can transfer the needle.
Past ENS, DAOs had a robust 12 months, evident by the rising utilization in key items of DAO infrastructure. Gnosis Secure, which is the most well-liked multisig pockets DAOs use to handle their treasuries, noticed 3x progress in each the variety of Safes and transactions executed in 2021. Snapshot, a software that helps DAOs execute off-chain votes with on-chain verification, exhibited sturdy progress as effectively.
Exercise on the dominant platform for NFTs tells you all it is advisable know in regards to the breakout 12 months NFTs loved.
OG NFT CryptoPunks noticed 60x YoY progress, reaching a complete quantity of 650K ETH, or $1.7B at present costs. This determine nevertheless, features a flashloan powered $500M wash sale — a strong reminder of how a lot subjectivity there’s in on-chain information.
The second most notable NFT undertaking of the 12 months was Bored Ape Yacht Membership, which went from a distinct segment neighborhood to the superstar NFT of alternative, together with the likes of Steph Curry, Shaq, Justin Bieber, Jimmy Fallon, Paris Hilton, amongst others. At one level the BAYC flooring (value of the most cost effective NFT within the assortment) momentarily flipped the CryptoPunks flooring.
Within the warmth of latest issuances flooding the market, and older NFT collections attaining billion greenback market caps, the typical value of NFTs altering palms did a 150x from 0.1 ETH to roughly 15 ETH by 12 months finish.
One of the fascinating NFT launches of the 12 months was Loot (coated right here), which let anybody mint 1 of 8,000 NFTs that might kind the premise of a Dungeons and Dragon fashion RPG sport. Preliminary pleasure was skyhigh, earlier than really fizzling out as time went on.
Whereas Loot’s flame might have dimmed, it was nonetheless a landmark 12 months for NFT primarily based gaming, with the breakaway success of Axie Infinity bringing play-to-earn and GameFi narratives to the forefront. As the info exhibits, Axie Infinity NFT quantity dwarfs that of any prior NFT primarily based sport.
Lastly, whereas Ethereum was the middle of the NFT present, marketplaces seem like bobbing up throughout a number of chains. The info exhibits that decrease payment environments are enabling several types of person exercise. Solana’s Magic Eden, for instance, has extra transactions than OpenSea since customers are unencumbered by exorbitant fuel charges.
Extra in Elias’s epic thread
Past being chock-full of illuminating information factors on the 12 months in crypto and Web3, the total thread underscores the fantastic thing about on-chain information and the elevated maturity of the trade. The power for one particular person to place collectively a dataset this wealthy is a testomony to all the nice information suppliers the trade now has at our disposal.
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