The blockchain and digital asset industries are changing rapidly, over the 12 years of Bitcoin’s existence we have seen many influential trends in the blockchain and digital currency space come and go. Initial coin offerings (ICOs) were once very popular, but now they are virtually non-existent and, on the other hand, non-fungible tokens (NFTs) have been around for almost a decade, but have been widely adopted for the whole time. first time this year. .
If you’ve been in the crypto business long enough, you realize that it has cycles, and with each cycle new trends are created while old trends get stronger.
Here are some of the most influential trends that have taken place in the blockchain and digital currency industry in 2021.
The Death of DeFi Coins and Tokens
In 2021, DeFi coins and tokens, which often took the form / name of different foods and animals, ceased to be trendy investments and business opportunities; the era of Sushi tokens and Badger coins ended in 2021.
The death of these DeFi coins and tokens was predictable, the only use many of them had was that they allowed traders to make money. Most coins and tokens did not have a sustainable income-generating business model, working product, or roadmap.
Regardless, retail and institutional investors loved these tokens due to their low liquidity and low trading volume, which made it easy for those who entered early to get pumped by everyone who followed. . The DeFi dynasty came to an end when digital art NFTs became popular and investors began to switch from DeFi coins and tokens to NFTs.
2021 has been a monumental year for digital art NFTs; the NFT market has grown exponentially. Some blockchain-based NFT sales have even been on the list of highest prices ever paid – at auction or private sale – for a work of art by a living artist at the time of sale.
So why have NFTs been so successful? Unlike many concepts in the blockchain and digital currency space, NFTs had a point of reference from which any consumer or investor could collect data to better understand the world of NFTs, that point of reference was the fine arts market.
NFTs and fine art have many similarities, some of the most notable are the rarity, the weight that comes with owning a rare piece, the well-developed communities that support the art, and the network effect. that the members of these communities often have what reinforces the interest in art. Additionally, the price of some NFTs creates a barrier to entry that can add prestige to projects (like owning a very expensive car), making expensive art on hand even more desirable.
Interestingly, during times when digital currency markets are on a downtrend, many people turn money from coins and tokens to NFTs, as NFTs tend to preserve wealth better than the associated coin or token. to the blockchain network on which the NFT lives.
For these reasons, among many others, NFTs have made their mark and shown the world that they are here to stay in 2021. Many people think that 2021 was just the beginning for NFTs, which is become popular because of the blockchain-based digital images is now evolving. in a space where tokens have utility and properties that give their owners the opportunity to take advantage of unprecedented opportunities and savings.
The rise of DAO
Similar to NFTs, Decentralized Autonomous Organizations (DAOs) have been around for almost a decade, but only took off in 2021. DAOs can thank DeFi – legitimate decentralized financial services, not coins and tokens. animals or food – for the resurgence of their popularity.
DAOs are an extension of the legitimate DeFi applications and services that were created like decentralized lending and borrowing; but rather than decentralizing financial services, DAOs decentralize decision-making – or at least they used to. What started out as a leaderless entity governed by its members has evolved into an entity where community members pool their funds to achieve a specific goal – for example, the DAO Constitution decided to purchase a copy of the Constitution of the United States.
Although some DAOs still focus on decentralizing decision-making and governance, more and more are starting to take a form that looks more like the DAO Constitution; where they raise funds to achieve a very specific and predefined goal.
It’s still the start for DAOs, but 2021 was the year many DAOs went from being a small spot on the radar to being a staple in the cryptocurrency world.
Play to win
Games to be won are usually video games that reward their participants – and sometimes only the winning participants – with digital currency or NFTs at the end of the game.
Many believe that blockchain-based winning games create unique opportunities for gamers because, at the moment, only professional gamers or gamers who broadcast to large audiences are the ones who get paid to play the games. However, the games to be won give any player, regardless of skill level, the opportunity to play a game casually and earn money. Some believe that if the player devotes enough time and energy to a game to win, he will be able to earn an income from the game.
Enter the metaverse
In the fourth quarter of 2021, many companies entered the metaverse; Facebook even changed its business name to “Meta” and announced plans to create a metaverse.
When describing the Metaverse, many people are referring to the movie Ready Player One, in which there is a digital world that rivals the physical world in many ways. This digital world is made possible by technological advancements such as augmented reality, virtual reality and blockchain to create an immersive experience for the end user.
As the infrastructure around virtual reality and augmented reality improves, you can expect even more new and established companies to launch an adjacent platform, service or application. to the metaverse.
And the latest trend that has emerged this year – or at least the latest trend we’ll be discussing in this article – is the growing interest and number of companies developing or building what they call “Web 3.0”.
Web 3.0 is best described as the next version of the Internet, where the Internet natively owns properties that change the way ownership, identity, income / profit generation works, etc. There are many Web 3 developments aimed at empowering users, and many of the concepts discussed in this article, such as metaverse, NFTs, DeFi, and DAOs, relate in some way to Web 3.0.
Many believe that blockchain networks are one of the key tools that will make Web 3 a reality, and many companies are trying to take advantage of what they believe to be an emerging market (Web 3).
Respond to consumer demand
In 2021, we saw new trends appear and old ideas disappear. In the larger digital currency space, we are slowly but surely moving away from foreclosures towards projects that have utility or that add value to the end user.
Many creators are currently interested in delivering products, platforms and services that will usher in the new age of the Internet, Web 3.0. Unfortunately, this has led to phrases like “web 3” and “metaverse” which have become the latest blockchain buzzwords that individuals carelessly use to secure investor dollars.
If done right, Web 3 and the Metaverse have the potential to see massive adoption and widespread use; but it’s still unclear whether the infrastructure to support a full metaverse or a decentralized internet is still in place. Either way, I expect progress to be made in each of the areas listed in this article in 2022, as more companies build and release platforms and services that are currently very popular. requested.
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