Looking Back at 2021: The 10 Most Important Events in the Crypto Industry
The tide comes in, the tide goes out, and it repeats. We bid farewell to 2021 and welcome 2022.Colin Wu says: Author
Editor of this issue: Colin Wu
1. Bitcoin Hits Historical High, US CPI at 40-Year High
Against the backdrop of the US's full monetary easing, Bitcoin's price reached a historical high of $69,000 on November 10. The US's seasonally unadjusted CPI year-on-year rate for November recorded 6.8%, the highest since June 1982. With China possibly lowering interest rates while the US is set to raise them, the global monetary situation in 2022 is exceptionally complex.
In-depth Analysis: The Impact of US Monetary Policy Shift on Cryptocurrency
2. China Eliminates Mining and Huobi Exits
From a global perspective, China has completely eliminated Bitcoin mining and trading, with Huobi, the largest exchange in the Chinese-speaking region, announcing the exit of all Chinese users. Although not unexpected, it remains one of the most significant news events of the year. This signifies a complete transfer of the mining industry and further indicates China's exit from the global cryptocurrency stage, with Chinese crypto practitioners migrating globally. This also stimulates US support for the industry from another angle.
Going Abroad, Waiting, Transforming? Where Will Chinese Miners Go After 619
Huobi Starts Exiting Millions of Chinese Users, Firm Stance, Major Internal Restructuring
3. El Salvador Announces Bitcoin as Legal Tender
Despite being a small country in South America, El Salvador astonishingly announced Bitcoin as legal tender and has continued to buy the dip despite global skepticism. New initiatives such as Bitcoin City, Bitcoin bonds, and geothermal mining are emerging. The direction of El Salvador's grand experiment is one of the most important focal points of this year and the future.
El Salvador's Grand Experiment + Taproot Upgrade: Can Bitcoin's Dying Payment Attribute Be Revived?
4. Coinbase Successfully Goes Public, Bitcoin Futures ETF Approved
In April, Coinbase, the largest cryptocurrency exchange in the US, successfully went public in traditional capital markets. Although its market value often fluctuates dramatically with Bitcoin's volatility, this event signifies the most important milestone for the cryptocurrency industry entering traditional finance and the public eye. A similar landmark event is the approval of the Bitcoin futures ETF.
Analysis of the First Bitcoin Futures ETF in the US: Features, Risks, Impacts, and Future
5. Musk, Tesla, and MEME
The world's richest man, Musk, barged into the cryptocurrency industry like an elephant in a kitchen. Tesla first purchased a large amount of Bitcoin and announced support for Bitcoin payments. However, it suddenly stopped supporting Bitcoin for environmental reasons, and Musk shifted his support to Dogecoin. Musk's support for Dogecoin triggered a subsequent MEME frenzy.
Musk's Shift: The Multiple Impacts of Losing Bitcoin's Most Important Supporter
6. Ethereum EIP-1559 Upgrade Successful
After the successful upgrade of Ethereum EIP-1559, the price of Ethereum reached a historical high. Ethereum's price increased nearly fivefold over the year, while Bitcoin's increase was less than onefold. However, EIP-1559 did not alleviate the expensive Gas fees of Ethereum. Fortunately, EIP-1559 did not face significant delays, instilling confidence in the more important Ethereum 2.0 expected next year.
7. New Public Chains Emerge
New public chains such as Solana, Terra, Avalanche, and Polygon exploded this year, with increases of 10,690%, 14,353%, 3,002%, and 11,034%, respectively. In addition to the massive wealth effect, each has its own characteristics and advantages, challenging the Ethereum ecosystem.
8. Punk Revival and Ape Madness
CryptoPunks and BAYC led the NFT craze, making profile picture NFTs a viable business model. The more significant meaning of NFTs lies in the fact that it is the first time the cryptocurrency industry has fully broken into mainstream society and popular culture.
9. The Rise of Axie and Chain Games
From DeFi, NFT, to Gamefi, the rise of Axie has sparked the popularity of Gamefi. If NFTs are noble games, then Gamefi represented by Axie is a rural encirclement of the city, with a massive community foundation. By the end of 2021, the financing amount for Gamefi had become the largest part of the cryptocurrency field. However, some low-quality chain games have also collapsed. In 2022, a large number of legitimate gaming companies are entering the market, and there are many interesting variables regarding the future of Gamefi.
In-depth: The Explosion of GameFi Chain Games—BSC Benefits the Most, but Is P2E Sustainable?
10. Polynetwork Hacking Incident
Polynetwork became the largest cryptocurrency theft case in history, but fortunately, the hacker eventually compromised and returned all the funds. On the other hand, theft cases targeting DeFi protocols and centralized exchanges are rampant, with only a few recoverable, while most have become cash cows for hackers. Numerous security incidents seem to have no effective solutions against hackers, casting a negative shadow over the industry.
