Nansen Report Highlights Growth of Defi and NFTs in 2021

Nansen, a cryptocurrency and blockchain statistics and analytics platform, has issued a report on the expansion of decentralized finance (defi) in 2021. The doc highlights how defi managed to continue to grow, opening the sphere to new participant chains. Non-fungible tokens (NFTs) additionally had a notable yr, with many new wallets experiencing progress because of this.

Nansen Puts 2021 in Review

Nansen, a blockchain analytics agency backed by Coinbase Ventures and a16z, has offered a report concerning the habits and progress that decentralized finance and NFTs skilled within the final yr. The doc, titled “Nansen’s State of The Crypto Industry Report 2021,” highlights how defi progress accelerated and NFTs rose as an necessary a part of the crypto business, in addition to different industries — even attracting celebrities.

Regarding defi, Nansen estimates the expansion of the market in comparison with 2020 was 1,120% in TVL. While ethereum completed the yr with 70% dominance within the defi sector, the crypto’s incapacity to scale opened the doorways for different options to come up. BSC and Polygon have been two of those chains that surpassed the variety of transactions on Ethereum by 1,345% and 760%, respectively, at their peaks. In the identical manner, solana and avalanche reached important ranges of exercise on their networks.

When it involves protocol exercise, Uniswap and Aave have been two of the protocols that registered important actions, and Lido, an ETH2 staking protocol, additionally noticed the participation of huge ETH whales.

NFTs Galore

Another of the notable phenomena of final yr was the rise of the NFT market. With initiatives like Cryptopunks and Bored Yacht Ape Club main the way in which, NFTs managed to take the eye of celebrities like Stephen Curry and Jay-Z, who substituted their avatars on social media with pictures of those NFTs.

Data from the report signifies that the NFT market bloomed throughout 2021, experiencing two notable peaks in the course of the yr. The highest buying and selling occurred round August 29, seeing gross sales for 132K ETH, value $422 million. The NFT market registered gross sales of 4.6 million ETH value $17 billion. Nansen additionally informs concerning the rise of good cash related to this new market, with the highest 10 NFT merchants recording greater than $185 million in income.

The firm believes that comparable themes will proceed to develop and develop within the defi market this yr. Quality dapps, decentralized stablecoins, authorities regulation, and NFT innovation are a few of these themes.

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