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Elon Musk, Dogecoin, NFT & Metaverse - an Ultimate 2021 Year Ender
2021 saw the boom in the NFT and Metaverse, as well as new all-time highs for meme coins. BTC holds its ground as the leading cryptocurrency, and ETH is heading towards version 2.0.
In general, 2021 was a successful year for the industry and allowed it to strengthen its position. We’ll tell you about the main trends and players of the outgoing year.
2021 will go down in history as the year of the metaverse. What is a metaverse, exactly? Metaverse represents a virtual universe or in other words a digital space. It helps implement new ways of interaction between users, like nothing else seen before. Throughout the years we have been moving towards more and more engaging mediums. Metaverse is the new step for society. We are not talking about the Internet that we are just looking at through the screen anymore. Now we are inside the Internet. Within Metaverse users get access to virtual reality (VR), augmented reality (AR), digital currency, online gaming, real estate, shopping, hanging out with friends, and much more.
Digital currencies are used as a payment method in metaverses. While some cryptocurrencies can only be used within a particular metaverse, other tokens are available on various exchange platforms. We saw a number of grand projects that included Metaverse in 2021.
First and foremost, Facebook rebrands to Meta. The company announced the start of building a new Metaverse, which users can help create. Facebook's CEO Mark Zuckerberg strongly believes that Metaverse is the future of the Internet.
There are also new platforms being created and introduced on the market. One of them is Dreamverse – a collection of alternative worlds full of possibilities. Dreamverse has launched the building process of a metaverse for NFT owners where they can play games, explore and, simply put, have fun. The world is only limited to your imagination.
Another interesting project that caught our attention is called Decentraland Metaverse. This is a digital reality world based on the Ethereum blockchain. This is the space for users to trade, build real estate, create new games and art projects.
Celebrating New Year's is a big deal for Americans, and there is nothing more memorable than the drop of a ball in Times Square in New York to mark the beginning of next year. However, with COVID-19 rampaging around the world (including the US) this year, many people may not be able to fully enjoy this New Year. Fortunately, there are Metaverses.
Crypto giant Digital Currency Group and Jamestown, owner of One Times Square, announced Wednesday that they are going to recreate New Year's Times Square in Decentraland. In this open-source blockchain-based 3D virtual space the companies are going to hold the "MetaFest New Year's Eve Countdown Party 2022". Visitors to this virtual party will enjoy exciting games, interactive communication, and of course, the famous ball drop in Times Square. And all this without long queues and the risks of COVID-19 infection.
There is hardly anyone left who has not heard about NFT. NFT stands for a non-fungible token, and this word tops the list of the most used words of 2021. The NFT frenzy began in early 2021, as more well-established names in the entertainment industry started to announce their NFT collections. One of them is Lil Pump, a Miami-born rapper, who launched his own NFTs on Sweet. Prices ranged from $10 to $10,000. Since then the demand for NFTs has grown exponentially.
NFTs are a vital asset in art and business fields. Their interoperability allows them to be transferred across all ecosystems supported by the blockchain. NFTs are widely used as in-game assets or a form of digital art. Each NFT has its unique identifier.
Towards the end of 2021, NFTs have been so popularized that even Instagram HQ is thinking about offering NFTs to users. Soon bloggers could start making money off of their content on one of the most popular social media platforms in the world. According to the Instagram software development team, a new NFT tool could be added in the next few months.
Dogecoin cryptocurrency appeared in 2013. It is a fork of the Bitcoin protocol and has a similar architecture, but there is a main difference from the first cryptocurrency – DOGE has unlimited emission. It was developed for fun by two programmers from IBM and Adobe, Bill Marcus and James Palmer. Dogecoin was inspired by the Shiba Inu dog meme.
Despite its humorous origin, the coin was able to become popular among the crypto community and is in the top 19 cryptocurrencies in terms of capitalization. The popularity of Dogecoin is due in large part to the billionaire founder of Tesla and SpaceX Elon Musk. He has contributed not only to the volatility of traditional financial markets – Musk has also sparked a lot of hype in the cryptocurrency market. In early 2021, the businessman began to frequently mention the Dogecoin cryptocurrency in his tweets.
At that time, Dogecoin was worth a penny and was more a tribute to memes than real money. However, Musk talked about buying Dogecoin for his son, posted various memes, called Dogecoin a possible "future of the cryptocurrency world" and at the same time warned about her problems. Musk considered the key problem of Dogecoin to consolidate most of the emission among a limited, very small number of crypto wallets and urged large holders of this currency to sell their coins.
He stated that mining Bitcoin is not a green business, and the DOGE meme-coin is much more efficient than the first cryptocurrency. The Dogecoin course reacted positively to the statements of the billionaire. Due to this, the price of meme cryptocurrency has grown more than 100 times over the year.
With Musk's tweets, Dogecoin's rampant growth began, which continues to this day. For example, on April 1, he joked that his company SpaceX would send Dogecoin to the moon – and on the same day, the rate of this cryptocurrency skyrocketed by 20 percent.
It all began with this tweet:
Then happened this:
As a result, by the beginning of May, it broke through its all-time high of $ 0.54 per 1 Dogecoin, and its entire capitalization amounted to $ 70.5 billion.
Musk stated that Doge is his “fav” crypto. He has continued to support Dogecoin throughout the year. Musk believes that Dogecoin is the best cryptocurrency for carrying out transactions, despite being a meme dog coin.
2021 was a big year for Doge, and next year, SpaceX has planned to send a satellite called Doge-1 to the moon, the flight of which will be paid for with the Dogecoin cryptocurrency.
Who is Elon Musk? The man who, in sixteen years, created one of the world's leading aerospace corporations, SpaceX; launched the prestigious and stylish Tesla electric car on the market; developed a network for the production and installation of solar panels.
The man who constantly talks about flights to Mars and the construction of huge multi-level tunnels for communication between megacities; who is developing a new high-speed and environmentally-friendly form of transport called "Hyperloop", covering a thousand kilometers in an hour. He is not a Middle Eastern billionaire philanthropist who is crazy about oil money, not a cocaine baron or a clandestine arms dealer who is tortured by his conscience. He is “just” an engineer and a businessman in one person, dreaming of helping humanity.
Elon Musk has definitely enjoyed his colossal influence on Twitter in recent years, where he has over 53 million followers. With one careless tweet, he can drop or rise to an incredible level the quotes not only of his enterprises but also of other public companies. A couple of years ago, he already incurred the wrath of the US Securities Commission (SEC), which accused him of misleading investors, but this did not stop the businessman. Over the past six months, he switched from the stock market to the cryptocurrency industry and provoked an increase in the Bitcoin rate by tens of percent.
If only Musk's son earned on the growth of Dogecoin, then his company Tesla made a big profit on the races in the Bitcoin rate, provoked by the businessman's tweets.
In February 2021, the electric car manufacturer unexpectedly notified the SEC of plans to purchase bitcoins in the amount of $ 1.5 billion and a few days later closed this deal on the Coinbase exchange. Against the background of this news, the Bitcoin rate in the very first day rose by 13 percent and broke a historical maximum of 44 thousand dollars per coin.
Musk called storing money in Bitcoins "just a less stupid form of liquidity than storing in fiat currencies," but argued that the company's actions did not fully reflect his opinion. A month later, Tesla opened the opportunity to buy its electric cars for Bitcoins – which again provoked the growth of the cryptocurrency rate, this time up to 55 thousand dollars per coin.
And a month later, the company unexpectedly sold 10 percent of its bitcoins – in the amount of $ 272 million, making a profit of $ 101 million from this transaction. Musk claimed that Tesla sold part of the currency in order to "prove the liquidity of Bitcoin as an alternative to keeping money on the balance sheet," but Twitter users nevertheless reproached him for deliberately buying bitcoins, inflating their capitalization and then selling currency at its peak.
In 2021, Elon Musk became the richest man in modern history – at the end of October, his fortune reached nearly $ 300 billion. In December, Musk was named the Man of 2021 by the Time magazine.
The world of finance is being captivated by memes. Funny pictures with characters from famous movies and cartoons, cats and cute dogs became integral attributes of successful advertising, and crypto companies released a series of meme coins that became market leaders in a matter of hours.
Despite the fact that meme coins were often created and perceived as nothing more than a joke, meme tokens and coins are very promising for earning. Having carefully studied the dynamics of price growth for meme coins, we will see that the rate of many of these meme coins has grown hundreds or even thousands of times over the year.
Analysts advise staying sober and warn that meme coins are short-lived. The fashion for them will soon pass – in any case, the probability of this is high.
While this fashion continues, we invite you to familiarize yourself with the most successful meme coins of the outgoing year. This meme coin rating was compiled based on the market capitalization of each cryptocurrency.
Top 10 Meme Cryptocurrencies of 2021
Meme cryptocurrency Dogecoin appeared at the peak of the popularity of the Internet meme DOGE. The coin was created as a joke, in order to draw public attention to the cryptocurrency, but unexpectedly for everyone, it became one of the most popular coins. The emission of Dogecoin is not limited: this means that the number of DOGE coins is unlimited and you can mine dogecoin indefinitely. DOGE was launched in 2013 but initially had little success. In 2019, the coin was worth no more than 1 cent. The situation changed dramatically in 2021 when Elon Musk began to actively draw attention to the meme-coin with statements on his Twitter.
Shiba Inu (SHIB)
Unlike Dogecoin, the second member of our top meme cryptocurrencies list is distinguished by a limited emission and does not have its own blockchain. The Shiba Inu coin was issued on the Ethereum blockchain (ERC-20), and the number of available Shiba Inu tokens is limited to 1 quadrillion. The creators of the Shiba Inu meme cryptocurrency do not hesitate to call their brainchild the "Dogecoin killer".
SafeMoon (SAFEMOON) is a relatively new meme cryptocurrency of 2021. The token was launched in March and the coin's trading volume quickly began to gain traction. Like most meme coins, the price of SafeMoon is socially dependent and can be highly volatile. The SafeMoon meme token owes its success to David Portnoy – it is he who promotes this meme cryptocurrency in every possible way.
Dogelon Mars (ELON)
Elon Musk is a key figure in the development of meme coins and it is not surprising that the name of the project so clearly guesses the connection with the Tesla gender. The developer (also Elon) assures that this cryptocurrency is not a meme coin and he has ideas for the further development of the project. The Dogelon Mars meme token was created to support people affected by scam in the cryptocurrency market.
Kishu Inu (KISHU)
Kishu Inu is another relatively new meme coin. This cryptocurrency was created with the goal of bringing popular cryptocurrency concepts to the mainstream. The project aims to become a full-fledged decentralized meme coin. The main difference from other meme coins is that KISHU introduces concepts such as rewards for participation, NFTs, decentralized exchanges, etc.
Cryptocurrency CumRocket (CUMMIES) is a marketplace that allows you to download and monetize adult content. It is an NFT (non-fungible token) marketplace where content creators are paid and tipped in special tokens called CUMMIES. Paying for 18+ content with cryptocurrency guarantees the anonymity of both buyers and content creators.
MonaCoin (MONA) is a blockchain-based cryptocurrency system primarily used in Japan. The project was launched in 2013 by an anonymous developer, Mr. Watanabe. Blocks are generated faster on the MonaCoin network than on the Bitcoin network, which is why the token has been approved by the Japanese regulatory authorities for use in day-to-day transactions.
Hoge Finance (HOGE)
HOGE is a deflationary token powered by the Ethereum blockchain (ERC-20). In the Hoge Finance network, each transaction is subject to a 2% fee, part of which is burned and part of which is distributed among token holders. The project focuses on the community, encouraging all participants to work together to achieve common goals. The developers hope that in the future HOGE will become the "face" of the Ethereum blockchain.
Australian Safe Shepherd (ASS)
The Australian Safe Shepherd (ASS) meme coin is a fork of SafeMoon. The token is completely community-driven and was launched without a starter distribution to creators. Every trade on the network continues to automatically generate liquidity locked inside PancakeSwap pools. The main goal of the project is simple – to raise the price of the meme token.
Banano (BAN) is a meme cryptocurrency distributed completely free of charge in a friendly and fun atmosphere. The BAN mem token helps people take their first steps in cryptocurrency by simplifying the process of interaction. Among other things, the BAN token is used by some NFT games, which makes getting to know Banano even more fun.
The year 2021 turned out to be generally successful for Bitcoin: from $ 28,000, the price rose to $ 69,000 – the leading cryptocurrency renewed its maximum in November. This was facilitated by a number of positive factors – in particular, the recognition of Bitcoin as the state currency in El Salvador.
In October, the US Securities and Exchange Commission (SEC) finally approved ProShares' application to launch the Bitcoin Strategy ETF. The US regulator has also approved similar instruments from Valkyrie Investments and VanEck.
An important event for Bitcoin this year was the activation of the Taproot update: the soft fork occurred on November 14 at block # 709 632 – it was mined by the F2Pool mining pool.
The foundation for mass adoption of Bitcoin has been formed – retail and institutional investors, corporations and governments are investing in it.
With regard to the current situation, over the holiday weekend, BTC surpassed the $ 52K level, and investors around the world have a glimmer of hope that this extremely eventful year will end on a positive note. However, soon the rapid growth of the largest cryptocurrency by market capitalization slowed down and Bitcoin fell below the psychological barrier of $ 50 thousand in the early morning of Tuesday.
BTC continues to fall lower and lower. Moreover, this asset develops symptoms of further deterioration. For example, Bitcoin broke through the previous bearish continuation pattern that formed near the $ 49.2K support line. In addition, the on-chain price barriers formed during the influx of whales were broken.
Early Thursday morning, having failed to return to the $ 48K level, BTC fell below $ 47K, even setting a local minimum around $ 45.9K. Although it has since risen above the $ 46.5K level again, BTC's potential for any growth is still limited by the zone of immediate resistance near the level of $ 47 thousand.
ETH also did not waste time and fell below the support level of $ 3 700 and is now gathering strength after a rebound from a new minimum of $ 3580, which was set within the last 24 hours. This short-term downturn is likely related to the upcoming expiration of the $ 6 billion BTC option contracts set for this Friday. If Bitcoin cannot hold above the level of $ 47.2 thousand, then the largest cryptocurrency is likely to fall even to the support zone of $ 45.5 thousand. This imbalance is likely to last until the end of January 2022, as a large volume of call options has already been sold over.
However, intra-net data predicts troubled times for BTC and the crypto market in general. From the BTC Holdings chart, it can be seen that the BTC holdings of most whales and long-term holders have not changed in any way during the recent price drop. In addition, there is now a trend among small retail traders to sell off their BTC holdings. While retail traders may not have the ability to exert as much market influence as they once did (due to the influx of larger corporate players), their tendency to dump bitcoin is still adversely affecting this asset.
The second-largest cryptocurrency by capitalization, Ethereum (ETH), is on the verge of transition to version 2.0 of the protocol. The changes will make it greener and solve scaling problems. As a result, ETH can become even more attractive to investors.
The growth of Ethereum is evidenced by the fact that the transition of ETH from PoW to PoS mining algorithm can increase the competitiveness of the cryptocurrency. Among other things, the changes will make it more energy-efficient.
Another factor is the intention of the developers to burn some of the coins. The process implies a decrease in the amount of cryptocurrency on the market, which means it increases the value of assets, due to the formation of a deficit.
As of the end of 2021, over 500 thousand active wallets were registered on the Ethereum network. A large number of ETH investors testifies to the faith of market participants in the project.
Interest in Ethereum will not fade away in 2022, including thanks to the development of the decentralized applications (dApps) market. Institutional investors pay attention to this segment. Together with them, the digital asset market receives an influx of funds.
The already formed investor interest in ETH and the upcoming project improvements can positively affect the movement of the rate of its cryptocurrency.
Ethereum, just like Bitcoin, may renew its all-time high (($ 4891) in 2022. Some experts believe that the path of growth to $ 5,000 is open for this cryptocurrency. Among the reasons that will support the positive dynamics of ETH, we can also highlight the following:
- Rising global inflation in 2022. Investors will look for opportunities to save their funds. Many of them will turn their attention to ETH.
- The rise in popularity of NFT and DeFi. Many projects in both segments are powered by the Ethereum blockchain.
- The move to PoS could also boost investment demand for ETH. The combination of factors will help the cryptocurrency rate to grow.