Digital assets are a data-rich asset class by design. Every transaction since the inception of Bitcoin is stored in a public ledger which is open to analysis for everyone. That’s why there are so many metrics and charts in this sector to help guide investors.
Here are some of the most insightful charts and statistics from the past year.
BTC stock-to-flow
Source: Buy Bitcoin WorldWide
PlanB’s stock-to-flow model for Bitcoin went from obscurity to mainstream attention this year. This may have been the first time investors could chart BTC’s market performance against the model’s predictions. So far, it seems to be doing a good job. The model predicts BTC’s value should exceed $98,000 this month. It’s currently trading at $61,700 – a mere 37% away from its target.
Squid Game Rugpull
Not all charts are so reassuring. Some paint a bleak picture of what could go wrong when market mania meets bad actors. The graph above is an unfortunate example.
SQUID, a new crypto token named after the Netflix sensation Squid Game, saw its value skyrocket by thousands of percentage points within days of launch. At its height, the token was worth $2,861. Less than a week after launch, the development team announced they would no longer be working on the project, which collapsed the coin’s value to near $0.
“Rug pull” scams like these are not uncommon, but investors seem to be getting more aware of the indicators of such schemes.
Solana activity
Source: SolanaBeach.io
The mainstream adoption of Solana was yet another noteworthy story of 2021. The platform is quickly closing the gap with its rival Ethereum as more developers and dApps migrate to the network.
The chart above illustrates the bell curve of Solana’s wealth distribution. The vast majority of Solana investors (72%) hold between 0.001 and 0.01 SOL each. Altogether, the network has roughly 7 million users – many of whom have enjoyed an epic bull run in Solana’s value through the course of 2021. Year-to-date, the token’s value is up 14,500%.
OpenSea Trading Boom
Source: CoinTelegraph
Perhaps the most surprising trend this year was the rise of Non-Fungible Tokens or NFTs. Digital art collided with blockchain technology to unleash a multibillion dollar industry. The rapid adoption of NFTs is apparent in the sudden spurt in trading volume and user activity on OpenSea, which has become the most popular destination for NFT traders.
The dog fight
For most of 2021, Dogecoin seemed like the ultimate “meme coin.” The token is one of the few projects that has little to no utility and is driven almost exclusively by investor sentiment. Elon Musk had a pivotal role to play in DOGE’s bull run too. But Musk missed out on another dog-based meme coin that seems to be outperforming its older rival – Shiba Inu.
Over the past month, Shiba Inu’s market value has surged past Dogecoin, making it the 11th largest cryptocurrency on the planet. Shiba’s community seems to be just as large and passionate as Doge’s, which intensifies this virtual dog fight.
