The blockchain and digital asset industries are fast-moving, in the 12 years Bitcoin has existed, we’ve seen many influential trends in the blockchain and digital currency space come and go. Initial coin offerings (ICOs) was previously wildly popular however now they’re virtually non-existent, and on the other hand, non-fungible tokens (NFTs) have existed for pretty much ten years but experienced widespread adoption for the first time this year.

When you have experienced the crypto sector for long enough, you arrived at recognize that it has cycles, and in each cycle, you can find new trends which are created as the old trends get muscled out.

Here are some of the very most influential trends that occurred in the blockchain and digital currency industry in 2021.

The death of DeFi coins and tokens

In 2021, DeFi coins and tokens, which frequently took the form/name of different foods and animals, stopped being hot investments and trading opportunities; the era of Sushi tokens and Badger coins found a finish in 2021.

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The death of the DeFi coins and tokens was predictable, the only real utility that many of these had was they allowed traders to create money. A lot of the coins and tokens didn’t have a sustainable revenue-generating business design, a working product, or perhaps a roadmap.

Regardless, both retail and institutional investors loved these tokens because of the low liquidity and low trading volume which allowed the ones that got in early to possess their bags pumped by everyone who followed. The DeFi dynasty ended when digital art NFTs became popular and investors started rotating out of DeFi coins and tokens and into NFTsever since that time, investors haven’t looked back at the DeFi coins and tokens that pumped their portfolios and increased their net worth.

NFTs

2021 was a monumental year for digital art NFTs; the marketplace for NFTs grew exponentially. Some blockchain-based NFT sales even managed to get onto the set of the highest prices ever paidat auction or private salefor an artwork by an artist living during sale.

Why did NFTs experience so much success? Unlike lots of the concepts in the blockchain and digital currency space, NFTs had a reference point that any consumer or investor could collect data from to raised understand the planet of NFTs, that reference point was the marketplace for artwork.

NFTs and artwork have many similarities, some of the most notable ones are scarcity, the clout that originates from running a rare piece, the well-developed communities that support the art, and the network effect that the members of the communities frequently have which bolsters more fascination with the art. Additionally, the price tag on some NFTs creates a barrier to entry that may give projects prestige (like running a very expensive car), making the expensive art accessible a lot more desirable.

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Interestingly, during periods once the digital foreign currency markets are on a downtrend, lots of people rotate money out of coins and tokens into NFTs because NFTs have a tendency to preserve wealth much better than the coin or token from the blockchain network that the NFT lives on.

Therefore, among numerous others, NFTs made their mark and showed the planet they are here in which to stay 2021. Many people think that 2021 was just the start for NFTs, what became popular due to blockchain-based digital images is currently evolving right into a space where tokens have utility and properties that provide their owners the capability to benefit from unprecedented opportunities and economies.

The rise of the DAO

Much like NFTs, Decentralized Autonomous Organizations (DAOs) have existed for pretty much a decade but didn’t grab traction until 2021. DAOs can thank DeFilegitimate decentralized financial services, not animal or food coins and tokensfor the resurgence within their popularity.

DAOs are an extension of the legitimate DeFi apps and services which have been created like decentralized lending and borrowing; but instead than decentralizing financial services, DAOs decentralize decision-makingor at the very least they used to. What started as a leaderless entity governed by its members has transformed into an entity where community members pool their funds to perform a particular goalfor example, the Constitution DAO attempt to purchase a copy of america Constitution.

Although some DAOs remain centered on decentralizing decision making and governance, increasingly more are beginning to have a form that looks similar to the Constitution DAO; where they raise money to perform an extremely specific and pre-defined goal.

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It really is still the start for DAOs, but 2021 was the entire year that lots of DAOs went from being only a tiny blip on the radar to a fixture in the cryptocurrency world.

Play-to-earn

Play-to-earn games are often video gaming that reward their participantsand sometimes only the winning participantswith digital currency or NFTs upon completion of the overall game.

Many think that blockchain-based play-to-earn games create unique opportunities for gamers because, at this time, only professional gamers or gamers that stream to a big audience will be the ones that receives a commission to play games. However, play-to-earn games give any gamer, no real matter what their skill level, the chance to play a casino game casually and make money. Some think that if the ball player puts plenty of time and energy right into a play-to-earn game, that they can be able to make a living through gaming.

Enter the Metaverse

In Q4 2021, many companies made a transfer to the metaverse; Facebook even changed its company name to Meta, and contains announced plans to create a metaverse.

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When describing the metaverse, lots of people reference the movie Ready Player One, when a digital world exists that rivals the physical world in lots of ways. This digital world is enabled by technological advancements like AR, VR, and blockchain to generate an immersive experience for the end-user.

Because the infrastructure around virtual reality and augmented reality improves, you may expect a lot more companies, both new and established, to launch a platform, service, or application that’s metaverse adjacent.

Web 3.0

And the ultimate trend which has emerged this yearor at the very least the final trend we shall discuss in this articleis the increasing interest and amount of companies developing or building what they’re calling Web 3.0.

Web 3.0 is most beneficial described as another version of the web, where in fact the internet natively has properties that alter just how ownership, identity, revenue/profit generation work, and much more. Lots of the Web 3 developments try to empower users, and several of the concepts discussed in this specific article like the metaverse, NFTs, DeFi, and DAOs tie into Web 3.0 in a single way or another.

Many think that blockchain networks are among the key tools which will bring Web 3 to fruition, and several companies want to benefit from what they believe will undoubtedly be an emerging market (Web 3).

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Supplying consumer demand

In 2021, we saw new trends come and old ideas go. In the broader digital currency space, there’s gradually a move from money grabs, and into projects which have utility or add value to the end-user.

Many creators are interested in delivering the merchandise, platforms, and services which will usher in the brand new era of the web, Web 3.0. Unfortunately, it has resulted in phrases like web 3 and metaverse becoming the most recent blockchain buzzwords that folks are carelessly using to secure investor dollars.

If done correctly, Web 3 and the metaverse have the potential to see mass adoption and widespread use; but its still unclear if the infrastructure to aid a full-on metaverse or perhaps a decentralized internet is set up yet. Regardless, I expect progress to be produced in each one of the areas listed in this specific article in 2022, as more companies build and release platforms and services which are currently in popular.

Watch: CoinGeek NY presentation, AR & VR & the Metaverse on Blockchain

Not used to Bitcoin? Have a look at CoinGeeksBitcoin for novicessection, the best resource guide for more information about Bitcoinas originally envisioned by Satoshi Nakamotoand blockchain.

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