DappRadar’s Industry Report Highlights Massive Growth in 2021

The cryptocurrency market grew to become a $3 trillion industry this year. The adoption was spurred by growth in various areas, including decentralized finance (DeFi), nonfungible tokens (NFTs) and the metaverse.

NFT Trading Volume Tops $20 Billion

The crypto market had experienced massive growth this year. However, one of the key areas remains NFTs. According to the DappRadar Industry Report for 2021, NFT trading volume for the year surpassed $23 billion.

The report said, “Undoubtedly, this year’s highlight, nonfungible tokens (NFTs) reached an all-time high of $23 billion in sales as celebrities, sports teams, and big brands entered the market, ranking marketplaces like OpenSea, Atomic Market, and Solanart among the most popular dApps. Riding on the hype generated from Facebook’s rebranding to Meta, virtual land sold for as much as $2.5 million apiece, marking a 500% price appreciation, while the floor market cap for the top 100 collections hit an estimated $16.7 billion.”

Another area that recorded huge growth was blockchain-based gaming. The blockchain-based games generated more than $4 billion for the NFT sector, the report added. DappRadar, Head of Finance and Research Modesta Masoit said, “We’ve seen crucial progression in the dApp space this year, placing us on the cusp of mass adoption. While 2020 was ‘The Year of DeFi,’ 2021 is certainly ‘The Year of NFTs,’ with gaming thrown in in bulk over the last quarter. As these three categories converge, 2022 will, I expect, come to be known as ‘The Year of the Metaverse,’ with a project supporting and helping navigate this complex, cross-chain and cross-category paradigm stealing the spotlight.”

DeFi and the Metaverse are Not Left Behind

Decentralized finance is at the heart of the crypto performance this year. The total value locked in DeFi protocols grew by more than 700% from 2020, surpassing $200 billion this year. Ethereum remains the leading DeFi blockchain. However, some blockchains such as Avalanche, Terra and Solana have taken a huge chunk of Ethereum’s market share.

The metaverse space gained popularity towards the end of the year after social media giant Facebook rebranded to Meta. This saw the market cap of the metaverse-focused projects reach an all-time high of $3.6 billion.

Finally, blockchain companies attracted huge investments this year. The report pointed out that the blockchain industry witnessed a record-breaking year, with $27 billion in fresh funding poured into cryptocurrency and blockchain companies.

The market could experience further growth next year as the industry as a whole continues to go mainstream.