According to data presented by Trading Platforms.com, the combined value of the crypto market increased by more than 300% in 2021.
The crypto market boom in 2021
First, the 2 trillion total capitalization was reached in May and then even surpassed 3T after only another six months in November.
This is perhaps the figure that best represents the boom experienced by the major cryptocurrencies in 2021.
Global crypto adoption also grew exponentially in 2021, according to research published by Chainalysis, which has been monitoring 154 countries based on cryptocurrency usage for three years.
The countries that use crypto the most
In 2021, the global cryptocurrency adoption rate shows a growth of 881%, with Vietnam, India and Pakistan firmly in the lead. According to analysts, the increase in cryptocurrency adoption is concentrated mainly in emerging economies and where there are large amounts of remittances from abroad, which are increasingly being made with cryptocurrencies.
This is because cryptocurrencies offer a convenient, efficient and secure alternative to the many people in these countries who do not have a bank account.
In terms of the asset management market, on the other hand, the global market size is expected to grow from $0.4 billion in 2021 to $1.2 billion by 2026, at a compound annual growth rate (CAGR) of 21.5%.
Growing venture capital funding and increasing investment in cryptocurrency management technology would be the main drivers of this important growth, according to Research and Markets analysts, authors of the research.
Increasing use of crypto apps
The 75% increase in crypto app downloads is also interesting. As far as the geographical breakdown is concerned, the region expected to have the highest growth rate over the next few years should certainly be APAC.
The market capitalization of DeFi, the decentralized finance that has been booming for the past two years, has grown by 382% since the beginning of the year, setting a new all-time high at $95.7 billion.
The amount traded on the dedicated platforms is reportedly well in excess of $15bn. While the TVL, the total value locked on DeFi would be steadily around $100 billion on average.
DeFi’s growth was also undoubtedly driven by the huge boom in the NFT market, which would have recorded sales of around $27 billion in 2021.
The use of stablecoins
The growth of DeFi has led to the growth of stablecoins, which have become a kind of backbone in the DeFi ecosystem.
The value of stablecoins reportedly grew 18-fold by 2021, exceeding $100 billion in May 2021. Tether (USDT) dominates the market with over 79% of the total market capitalization.
2022 could be the year of market entry for the first CDBCs, considering that some 80 global central banks have already been working on central bank digital currency projects for some time.
This should also lead to a more precise regulation of cryptocurrency markets, which has long been desired by institutions, governments, but also by crypto operators themselves.