Crypto 2021 — the Yr That Was: Features and Losses of Prime Cryptocurrencies

2021 has been probably the most wonderful 12 months within the historical past of crypto. As per PitchBook Information, the full market capitalisation of cryptocurrencies reached $3 trillion (roughly Rs. 2,25,36,058 crore) in 2021, as enterprise capital funds pumped in $30 billion (roughly Rs. 2,25,346 crore) into the market by way of the 12 months. The highest 5 bullish crypto occasions of 2021 have been:

  1. In February, Tesla introduced the acquisition of $1.5 billion (roughly Rs. 11257 crore) in Bitcoin. It additionally stated t would take funds in Bitcoin. This led to Bitcoin’s complete market capitalisation crossing $1 trillion (roughly Rs. 75,04,768.69 crore) for the primary time ever.
  2. In March, a Non-Fungible Token (NFT) of “Everydays: the First 5000 Days” from the digital artist Beeple (Mike Winkelmann) was auctioned for over $69 million (roughly Rs. 518 crore).
  3. In April, crypto trade Coinbase was instantly listed on the Nasdaq inventory trade. Its valuation peaked at a whopping $112 billion (roughly Rs. 8,40,534 crore).
  4. In June, El Salvador’s President Nayib Bukele introduced plans to make Bitcoin authorized tender.
  5. In September, El Salvador formally adopted Bitcoin as authorized tender.

The upside

This is how a number of the high cryptos fared in 2021:

CryptocurrencyJanuary 1, 2021
(Rounded Off)
December 25, 2021
(Rounded Off)
Bitcoin$29,374 (roughly Rs. 22.06 lakh)$51,000 (roughly Rs. 38.30 lakh)
Ether$730 (roughly Rs. 54,833)$4,000 (roughly Rs. 3 lakh)
Binance Coin$38 (roughly Rs. 2,853)$550 (roughly Rs. 41,308)
Solana$2 (roughly Rs. 150)$190 (roughly Rs. 14,270)
Cardano$0.2 (roughly Rs. 15)$1.5 (roughly Rs. 112)
Terra$0.7 (roughly Rs. 53)$97 (roughly Rs. 7,286)
Avalanche$4 (roughly Rs. 300)$116 (roughly Rs. 8,709)
Polkadot$8 (roughly Rs. 600)$29 (roughly Rs. 2,178)
Dogecoin$0.006 (roughly Rs. 0.45)$0.2 (roughly Rs. 15)
Polygon$0.02 (roughly Rs. 1.5)$2.5 (roughly Rs. 188)


In November, the general market capitalisation of cryptocurrencies crossed $3 trillion (roughly Rs. 2,25,36,058 crore) for the primary time ever.

2021 was an ideal 12 months for meme cash, particularly Dogecoin and Shiba Inu.

We’ve additionally seen a flurry of reports round Central Financial institution Digital Currencies (CBDCs) with China main the pack.

A distinguished report discovered that 55 out of the highest 100 banks on the earth have some type of blockchain or crypto publicity of their portfolios.

The draw back

On the bearish facet, the most important crypto trade Binance suffered many outages and in addition confronted a ton of authorized issues in lots of nations.

The 12 months additionally noticed an enormous variety of rug pulls, hacks and scams. Reuters estimated that Decentralised Finance (DeFi) platforms misplaced over $10 billion (roughly Rs. 75,047 crore) to frauds and scams.

The strangest was the huge $643 million (roughly Rs. 4,825 crore) hack on the Poly Community. The hacker returned all of the funds!

An enormous rug pull was the Squid Recreation token, which zoomed to a value of almost $3,000 because of the protection by high media homes like CNBC, Forbes, Enterprise Insider, and so forth.

One of many largest scams, $3.6 billion (roughly Rs. 27,017 crore) , was carried out by brothers Raees and Ameer Cajee who operated the South Africa firm Africrypt.

A crypto phishing rip-off targetted customers of crypto wallets MetaMask and Phantom, and the crypto swap platform PancakeSwap.

The US regulation enforcement company, FBI, warned of frauds that leveraged crypto ATMs and QR codes.

Different losses embody:

  • Liquidity pool supplier MonoX: $30 million (roughly Rs. 225 crore)
  • Decentralised Autonomous Organisation BadgerDAO: $120 million (roughly Rs. 900 crore)
  • DeFi protocol bZx: $55 million (roughly Rs. 412 crore)
  • AnubisDAO phishing assault: $60 million (roughly Rs. 450 crore)

The Solana Blockchain had its share of issues. First, it went down for 17 hours and later suffered a Distributed Denial of Service (DDoS) assault.

Bitcoin SV confronted a number of 51 p.c assaults.

We additionally noticed main crypto crashes in 2021 – Web Pc (ICP) misplaced 93 p.c in simply over a month, IRON Titanium Token (TITAN) went from $52.46 (roughly Rs. 3,937) to $0.00000003 (roughly Rs. 0.0002) in only 10 days and SafeDollar (SDO), a steady coin immediately went to zero.

Two crypto exchanges collapsed in Turkey. The primary was Thodex, whose CEO disappeared with $2 billion (roughly Rs. 15,009 crore) of traders’ funds. The second was Vebitcoin, which stopped actions after dealing with “monetary pressure”. Two Australian crypto exchanges, Mycryptowallet and ACX, additionally shut down and value their traders hundreds of thousands.

Rohas Nagpal is the creator of the Future Cash Playbook and Chief Blockchain Architect on the Wrapped Asset Challenge. He’s additionally an newbie boxer and a retired hacker. You may comply with him on LinkedIn.

Thinking about cryptocurrency? We talk about all issues crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Devices 360 podcast. Orbital is offered on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital forex, not a authorized tender and topic to market dangers. The knowledge offered within the article will not be supposed to be and doesn’t represent monetary recommendation, buying and selling recommendation or every other recommendation or advice of any type provided or endorsed by NDTV. NDTV shall not be accountable for any loss arising from any funding primarily based on any perceived advice, forecast or every other info contained within the article.

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