“Tokens linked to the metaverse and memecoins dominated gains during another Bullish yr for cryptocurrencies“– Paul Ebeling
Bitcoin and Ethereum, which entered the year’s Bull run following big gainers in Y 2020, both marked new all-time highs. The market capitalization of the sector swelled from under $800-B in January to $2.6-T in December.
Most major digital assets notched triple-digit percentage returns outdistancing bitcoin the largest cryptocurrency, which was up 66% YTD as of 31 December.
But it was a lot of tokens that few investors had heard of prior to Y 2021 that dominated the yr’s ranking.
A look at those Top performers reveals 3 distinct themes: metaverse, Ethereum-killers and meme coins.
Here is a roundup of the Top 10 performers among digital assets with a yr-end market capitalization of at least $5-B, based on data from the crypto-analytics firm Messari, as follws”
The metaverse became the hottest segment of the cryptocurrency market, buoyed by Facebook’s rebranding as Meta. Although the segment has sold off since its all-time highs, metaverse- and gaming-related tokens took the Top 2 slots in this year’s Top 10.
Congestion on the largest smart contract-enabled blockchain sent users in search of more scalable blockchains, spurring the growth of alternative layer 1′s and scaling solutions. The year brought astronomical gainers for the likes of Solana, Polygon, Terra, Fantom and Avalanche, which took 5 of the slots in the Top 10.
That’s not to say Ethereum did not have a good yr. Its native cryptocurrency, ether gained a respectable 418% or 6X the returns for bitcoin.
While the rest of the crypto community sparred over optimistic Vs zk-rollups or Punks vs. Apes.
Retail speculation flooded both traditional equity and crypto markets this year, spurring a whole new category of “memecoins,” including Top performers dogecoin and DOGE-derivative Shiba Inu.
Dogecoin’s surge began in 1-H of Y 2021, reaching an all-time high of $0.74. YTD the token is up nearly 3,000%.
Have a prosperous, happy New Year, Keep the Faith!