Cryptocurrency and blockchain statistics and analysis platform Nansen has released a report on the growth of decentralized finance (defi) in 2021. The document highlights how defi has managed to keep growing, opening the field to new chains of participants. Non-fungible tokens (NFTs) also had a notable year, with many new wallets experiencing growth as a result.
Nansen, a blockchain analytics firm backed by Coinbase Ventures and a16z, submitted a report on the behavior and growth that decentralized finance and NFTs have experienced over the past year. The document, titled “Nansen's 2021 State of the Crypto Industry Report,” highlights how DeFi growth is accelerating and how NFTs are becoming an important part of the crypto industry as well as other industries—even attracting celebrities.
Regarding defi, Nansen estimates that the TVL market will grow by 1,120% compared to 2020. While Ethereum ended the year with 70% dominance in the defi space, the inability of cryptocurrencies to scale has opened the door for other solutions to emerge. BSC and Polygon were two of the chains that at their peak surpassed the number of transactions on Ethereum by 1,345% and 760%, respectively. Likewise, solana and avalanche have reached significant levels of activity on their network.
In terms of protocol activity, Uniswap and Aave are two protocols that have recorded notable moves, while ETH2 staking protocol Lido has also seen participation from large ETH whales.
Another notable phenomenon last year was the rise of the NFT market. With projects like Cryptopunks and Bored Yacht Ape Club leading the way, NFTs have managed to attract the attention of celebrities like Stephen Curry and Jay-Z, who have replaced their avatars with images of these NFTs on social media.
Data in the report shows that the NFT market is booming in 2021, experiencing two notable peaks during the year. The highest transaction occurred around August 29, with sales of 132K ETH worth $422 million. The NFT marketplace has sales of 4.6 million ETH worth $17 billion. Nansen also reported on the rise of smart currencies associated with this new market, with the top 10 NFT traders making over $185 million in profits.
The company believes that similar themes will continue to flourish in the DeFi market this year. Premium dapps, decentralized stablecoins, government regulation, and NFT innovation are some of the themes.
What do you think of Nansen's latest defi report? Let us know in the comments section below.
Sergio Goshenko
Sergio is a cryptocurrency journalist in Venezuela. He describes himself being late to the game, entering the crypto space when prices rose in December 2017. With a background in computer engineering, living in Venezuela, and being affected by the cryptocurrency craze on a social level, he offers a different perspective on the success of cryptocurrencies and how it can help the unbanked and underserved.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or an invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.
Rebecca French writes books about Technology and smartwatches. Her books have received starred reviews in Technology Shout, Publishers Weekly, Library Journal, and Booklist. She is a New York Times and a USA Today Bestseller...
