2021 has been a breakthrough year for the cryptocurrency market in many ways, and most investors were very happy that the price of Bitcoin (BTC) reached a new all-time high of $ 68,789. At the same time, Ethereum (ETH) experienced a parabolic rally that saw the price rise 565% since January 1, reaching a record high of $ 4,859 on November 10.
Although this has been a great year for cryptocurrencies with large companies, some of the biggest successes and major developments have taken place in the altcoin market, where decentralized finance (DeFi) and non-fungible tokens (NFT) have risen by thousands of percent and helped set new heights. Awareness of the implementation of blockchain technology and cryptocurrencies.
Here are five crypto projects that have made significant contributions to the crypto ecosystem in 2021.
Uniswap decentralized exchange (UNI) has undoubtedly had the greatest impact on the crypto ecosystem as a whole since its launch in the summer of 2020, with DEX experiencing significant growth through 2021, as it helped facilitate the launch of thousands of new crypto projects by removing barriers to launch which is located at central exchanges.
Data provided by Dune Analytics shows that Uniswap has been the dominant DEX throughout the year and has consistently published higher trading volumes than all other DEXs combined.
Monthly DEX volume by project. Source: Dune Analytics.
In fact, as shown in the chart above, volumes on decentralized exchanges began to rise in the second half of 2021, largely thanks to the activity of Uniswap.
During 2021, Uniswap also led the development, with protocol developers announcing the release of Uniswap v3 in March. The version 3 update included several protocol updates and laid the foundation for integrating layer 2 scaling solutions such as Optimism and Arbitrum with Uniswap to reduce transaction costs and processing time for users.
Aave (AAVE) is a DeFi lending protocol that allows users to deposit and lend tokens as a way to generate income, or provide them as collateral to borrow another asset.
When the DeFi sector began to take off in early 2021, AAVE became a community favorite thanks to the wide range of supported cryptocurrencies and the support of some well-funded players.
Within a year, AAVE expanded its capabilities with the release of AAVE v2, which added support for Polygon, a Layer 2 scaling solution, and Avalanche (AVAX), a popular cross-chain blockchain network.
Total liquidity under the AAVE protocol. Source: Aave
As a result of these additional opportunities, the total available liquidity of the AAVE protocol has exceeded $ 25.7 billion, making AAVE the highest ranked DeFi protocol in terms of total value locked (TVL).
Curve Finance is a stable, cryptocurrency-focused protocol that uses an automated market maker to manage liquidity on the platform and in the DeFi ecosystem.
Stablecoins have become an integral part of the crypto society in general in 2021, as they provide ample market liquidity and a safe haven for traders seeking refuge in times of high volatility.
The growing importance with which stablecoins have used the original Curve and CRV protocol accelerates the integration of stablecoins into several leading DeFi protocols, including the Yearn.Finance ecosystem and Convex Finance.
Although most of the assets locked in the Curve protocol are stack coins, the platform is currently the second leading protocol in terms of TVL behind AAVE, and Defi Llama data shows that $ 21.77 billion is now locked in Curve repositories.
The total insurance cost on the basket. Source: Devi Lama
Curve is also integrated with many of the most active blockchain networks, including Ethereum, Avalanche, Harmony, xDAI, Polygon, Arbitrum and Fantom, further proof of the protocol’s ambition to become a stable liquidity provider for the entire crypto market.
Related topics: US Financial Stability Oversight Board identifies stack coins and cryptocurrencies as threats to the financial system.
Axie Infinity is a trading-fighting (P2E) game that allows members to collect, breed, breed, fight and trade NFT-based creatures called Axes.
The P2E model has become a new favorite among fans in 2021 as it gives users the opportunity to earn daily income along with gaming, giving some unique advantages over the traditional pay-per-game model.
Along with the rise in popularity of the Axie Infinity, a new all-time high has emerged for the original AXS token for the platform. As the tokens rose to new heights, the platform raised $ 17.55 million