CRYPTOCURRENCY MARKET REPORT – Q4 2021

Q4 is undoubtedly the most volatile period of the crypto market in 2021. Such events of BTC hitting new ATH in early November and then suddenly dropping below $50,000 in early December; notable technological changes of the blue-chips as well as new trends coming up are gradually shaping the way investors allocate their assets in this emerging and lucrative financial market.

Through the Q4/2021 Cryptocurrency Market Report, the Kyros Ventures Research Team hopes to give you an overview of remarkable highlights of the past 3 months so that you can make the best investments and projections for 2022!

BITCOIN Q4/2021

After the recovery period in Q3, at the beginning of Q4, the $BTC price, as well as the entire crypto market, has seen improvement. Numerous news about regulation benefiting $BTC along with new trends and products launched have driven more capital flow into the crypto market, thereby making $BTC reach its ATH at nearly $69.000 (according to Binance). The market capitalization has reached 3 thousand billion USD for the first time on November 10 (according to CoinGecko).

$BTC PRICE AND MAJOR EVENTS

Below are some significant events in Q4:

  • 1/10: the situation was more optimistic for $BTC when rumors about an ETF launch spread
  • 20/10/2021: when ProShares Bitcoin Strategy officially traded Bitcoin Futures ETF, $BTC price has continuously reached ATH until 11/11, for the first time in the history, $BTC price was set at roughly $69,000
  • 12/11/2021: Miami became the first city paying dividends for its citizens by $BTC when they buy its cryptocurrency 
  • 15/11/2021: Taproot, the first upgrade for $BTC since 2017, was officially live, helping the development of smart contracts on Bitcoin blockchain more convenient
  • 16/11/2021: $BTC started its “red fire” days when CFO of Twitter, Ned Segal, said that investment in $BTC just “doesn’t make sense right now”. Afterward, India became the next country banning $BTC while Biden’s administration, step-by-step, was completing their $BTC tax regulations. Even the information about establishing a “Bitcoin City” of El Salvador could not help the bear market 
  • 12/2021: News about the new COVID-19 variant, Omicron, once again threatened the global financial markets. Meanwhile, investors were getting impatient with the SEC when they kept postponing the approval for the $BTC ETF. Perhaps such delay has made Fidelity, a financial company headquartered in Boston, the US, quietly launch a spot ETF in Canada, not the country of origin

SUPPLY SHOCK CARRIES ON

At the end of Q4/2021, on-chain data still shows that Bitcoin’s circulating supply is contracting.

The total supply of Bitcoin on exchanges keeps declining tangibly and reaches its all-time low for the last 3 years despite positive price movement in Q4/2021. Particularly, at the end of Q3/2021, the amount of Bitcoin on exchanges was recorded low at 2.457.417, at the end of October and the beginning of November, when the $BTC price continuously reached new ATHs, there was no sign that Bitcoin was pumped to exchanges and reversed the trend. In contrast, the total supply of bitcoin keeps reducing considerably and went to a new all-time low on December 22, 2021 at 2.303.241 Bitcoin.

In the meantime, $BTC supply which is low in liquidity and does not circulate on exchanges keeps rising remarkably and currently stays at 76.13%, while nearly reaching 76.26% in May. As seen on the chart, the relationship between these 2 metrics (price and low-liquidity $BTC supply) has been relatively positive within the past 18 months.

Ending Q4, $BTC supply with low liquidity keeps hitting new ATH when long-term investors of Bitcoin continually buy more new $BTC when the market still witnesses low-volume selling sessions and liquidations of long positions.

ETHEREUM Q4/2021 OVERVIEW

In Q4/2021, we have witnessed a lot of “explosion” of new ecosystems: Solana, Avalanche, Fantom… There are many views that Ethereum is in danger of being surpassed. So, let’s take a look back at Q4/2021 to see what Ethereum is holding.

EIP – 1559

EIP – 1559 launched with upgrades that helped alleviate the problem of expensive fees on Ethereum with a “base fee” proposal.

Base Fee has remained relatively stable.

However, gas on Ethereum is still unstable and depends a lot on market circumstances. If there are times when the market is active or opposite (Panic Sell), gas fees on Ethereum still increase quite a lot compared to usual.

Up to this point, approximately 1.3M ETH has been burned, equivalent to a value of about $4.9B. This is a huge number.

Ethereum’s Total Revenue continues to outperform many other top blockchains.

ETH 2.0 BEACON PHASE

The number of people who believe in and support ETH 2.0 continues to increase, which is clearly shown by the amount of ETH participating in staking on the Beacon 2.0 chain. With the launch of ETH 2.0, many new projects to solve the staking problem on the ETH chain have been built and developed, of which the most successful is Lido Finance.

While not having a prominent boom like other small ecosystems, in general, Ethereum still has a certain growth with Total Value Locked continuing to reach All-time-high, over $155B. This number is about 9 times higher than the two following ecosystems, Terra ($18B) and Binance Smart Chain ($17B). It can be said that Ethereum still retains its certain values and maintains a stable position and growth momentum, despite the fact that there are many new competing ecosystems.

PROTOCOLS ON ETHEREUM

We will continue to understand deeper by looking at the evolution of protocols on Ethereum.

The top 10 protocols with Total Value Locked on Ethereum have seen a marked change, with Lending and AMM giving way to the Curve and Convex. Curve with its continuous integration, expansion, and increasingly streamlined tokenomics has attracted a large number of users, with Convex growing prominently in late 2021.

Lido Finance also entered the top 10 protocols with the highest Total Value Locked with the success of its Liquid Staking product. With gas costs still relatively high on Ethereum, Dex AMMs in general have difficulty maintaining their positions.

Regarding the number of users, in the last 3 months, Ethereum has continued to maintain a growth rate despite expensive gas fees. To explain this, we can find a number of reasons such as:

  1. Crypto is increasingly mass-adoption, so the number of participants experiencing crypto-related products, including Ethereum, also increases.
  2. Despite the expensive cost, Ethereum is still home to a large concentration of assets in the market with top projects.

In addition, there are quite a few protocols such as Curve, Sushi, and AAVE that are gradually expanding and developing on Layer-2 as well as other ecosystems. This both has the effect of reducing the load on Ethereum itself, but also creates the risk of liquidity and user fragmentation. If there is a truly more suitable and efficient ecosystem, Ethereum could lose a lot of market share.

THE BOOMING OF ETHEREUM LAYER 2

There are many solutions to approach scaling and gas problems on Ethereum, ETH 2.0 is an on-chain solution and Layer 2 is an off-chain solution.

In 2021, gas fee on Ethereum recorded the highest, this is a big challenge of Ethereum but a big opportunity for layer 2 solutions.

At the moment, Polygon is the most successful layer 2 solution, which completed the main legos in its ecosystem, total value locked got $5.5B at the end of 2021. However, other layer 2 solutions such as Arbitrum, Boba Network, Metis Dao also have solid growth recently.

New solutions like Starkware or zkSync are expected by the community. In Q4, Starkware successfully raised $50M in Series C round with the participation of Three Arrow Capital, a16z, Alameda Research,..; meanwhile zkSync closed the Series B round with $50M from a16z, Crypto.com, Bybit,….

BIG UPDATE IN NEAR FUTURE

In 2022, the most expected thing is the Merge phase of ETH 2.0 is the combination of Beacon and ETH 1.0. This means the whole status of Ethereum’s chain and smart contract will be deployed on Beacon’s chain using the PoS consensus. At the moment, the Merge phase is in testnet and if the combination is successful done, Ethereum network will come to the final phase – Shard Chain which help Ethereum scaling when assure the security of the network.

TOP 5 BREAKTHROUGH SMART CONTRACT PLATFORMS IN Q4

Not only in Q4/2021 but the entire 2021, fierce competition has been seen between different smart contract platforms to expand their market share as well as community trust. Besides those Layer 1 which have been exploding in 2021 and draw a lot of attention to themselves such as Solana, Avalanche, or Fantom, there are still many new ones worth anticipating with abundant prospects to grow in 2022. Let’s take a glance at these 5 smart contract platform tokens which have witnessed the strongest increase in price in Q4/2021 and demystify their ignition for the last 3 months!

KADENA

Kadena is a blockchain platform using PoW mechanism to enhance security for transactions but also ensure scalability and safety when deploying smart contracts. Different from other blockchains, Kadena uses its own programming language called Pact, designed to automatically detect bugs and help developers write smart contracts more securely.

In Q4/2021, Kadena has had many major events which help boost its Total value locked and attract more users to the ecosystem, remarkably:

  • The launch of wrapped BTC on Kadena in mid-August 
  • $wKDA – the wrapped version of $KDA to bridge to Ethereum is created, which also marks the initiation phase of Kadena to expand to other platforms such as Terra, Polkadot, Celo, Cosmos… 
  • Liquidity is expanded with $KDA being listed on Crypto.com and Gate.io
  • The NFT landscape on Kadena is gradually rising when UFO Gaming announced their plan to  build an NFT gaming platform on this blockchain and Marmalade, the first NFT platform on Kadena, is introduced in early December
  • At the beginning of November, Kadena has launched the Chainweb-Mining-Client software allowing miners to build their own nodes without going through a mining pool

It should be mentioned that the ecosystem of Kadena has still been in its initiation phase so far with the absence of major fields to attract more capital flow. Two notable fields – AMM (KadenaSwap, Andedak & Kaddex) and NFT have yet to see impressive milestones. Nevertheless, it is this newness that makes $KDA a potential investment for those new participants joining this crypto market or for those who have missed the enormous deals of the blue-chips such as $SOL, $AVAX, or $ATOM.

DUSK NETWORK

Dusk Network is a blockchain platform aiming at users’ privacy and is designed for financial applications with Zero-knowledge Proof technology.

In Q4/2021, the growth of Dusk Network is mainly driven because of these events:

PHANTASMA

Phantasma is a blockchain platform specializing in NFT and gaming with neutral-carbon certification.[1] Another special feature of Phantasma is its Smart NFT technology with outstanding attributes, such as:

  • NFTs are easily programmable and adjusted/upgraded
  • Many NFTs can be bundled together to create a new NFT
  • Projects can create NFTs which limit the time of usage for users, thereby allowing them to try a new product before deciding to make their purchase decision
  • NFTs are minted instantly, users don’t need to wait or pay substantially high fees to finalize the transaction
  • NFTs can be embedded with other assets to create a minimum value for itself
  • Creators can attach a secret link to another file which can only be opened by that NFT’s owner

A few catalysts for the rise of $SOUL in Q4 include:

  • Save Planet Earth (TickerL $SPE), a British-headquartered company established in 2021 with a vision to solve environmental problems and climate change, officially chose Phantasma to be the blockchain platform to issue carbon credit at the end of October. The resonance of this partnership has even lasted to the end of November when the first NFT-based carbon of Save Planet Earth is sold on the NFT marketplace GhostMarket
  • Facebook and other giant tech companies announce their plan to join the metaverse landscape. All NFT and gaming projects benefit from this hype, including Phantasma
  • The famous American filmmaker Kevin Smith minted his NFT on Phantasma and claimed that he would hold $SOUL until it reaches $4.2
  • New projects are built or expanded to Phantasma, namely Blood Rune, DeSpace, …
  • At the start of December, Phantasma announced a partnership with Polinate, a crowdfunding platform, and Netvrk ($NTVRK), a metaverse project

TERRA

Some major events on Terra ecosystem in Quarter 4 are:

  • Mainnet upgrade from Columbus-4 to Columbus-5 at the end of September. Main points in this upgrade include:
    • 100% income from UST issuance, the stablecoin of Terra, will be burnt to reduce $LUNA supply (for every $UST minted, 1 $LUNA will be burnt)
    • Prioritize mempool for oracle votes to help the price update when minting $UST more accurate
    • Transaction fees on Terra will be paid directly to validators or authorized entities instead of flowing to reward pools as previously, therefore increasing benefits for staking $LUNA
    • Functions of the Inter-blockchain Communication of Cosmos SDK will be integrated into Terra blockchain, helping $UST liquidity flow to other blockchain platforms on Cosmos such as ThorChain, Secret Network, … 
    • At the end of November, news about FED’s opinion on stablecoin regulation has driven the popularity of algorithmic stablecoin as $UST
    • Investors rushed into buying $LUNA to join the lockdrop event of Astroport on December 14. Particularly, this DEX has pulled more than 1 billion USD, half of which is $LUNA, to the Terra ecosystem

Hitherto, according to Defi Llama, the total value locked of Terra has even passed Binance Smart Chain to be in the top 2, right behind the most popular smart contract platform in the world Ethereum.

Nonetheless, tokens of DApps on Terra did not enjoy much of the rise of $LUNA. Only 5/13 tokens in this ecosystem (excluding stablecoins) saw positive price change ($ANC, $LUNI, $ORNE, $LOOP) since late September, based on the data on CoinGecko.

At the moment, nearly half of the TVL on Terra belongs to Anchor Protocol, the most used lending platform in the ecosystem.

With the current number of DApps of only about 150, it can be seen that the Terra ecosystem is yet to enter its maturity state. However, investors can expect a strong explosion of $LUNA in a near future after the 150 million USD-worth incentive program introduced in July 2021 is activated gradually to support projects built on this platform.

SECRET NETWORK

Secret Network is a blockchain platform allowing developers to write smart contracts freely but still ensuring the privacy of user data.

Below are some crucial incidents happening on Secret Network for the last 3 months:

  • Mainnet upgrade – Supernova – since the launch of Secret Contracts in September 2020. This is a big turning point for the ecosystem as it also includes the Inter-blockchain communication protocol of Cosmos to Secret Network blockchain
  • Binance announced the re-opening of $SCRT withdrawal. This has helped the total value locked on SecretSwap, the first AMM of this ecosystem, soar by roughly 30 times

GAMEFI: STRONG FUNDAMENTAL ATTRACTS BIG MONEY

One of the most explosive trends of 2021 that we cannot ignore is the GameFi trend. It all started in the summer of 2021 when Axie Infinity completed the transition to the Ronin sidechain and perfected its Play-to-Earn model. At the same time, when the Covid epidemic raged, hundreds of millions of people fell into unemployment. Axie Infinity “accidentally” became an effective solution to this difficult problem.

The phenomenon of Axie Infinity has brought a new breath to the cryptocurrency market and created the basis for a series of projects related to blockchain games to emerge and launch many new services, attracting an extremely large number of users for this market niche.

On-chain data from DappRadar show that the number of Unique Active Wallet – UAW (wallets) active on GameFi applications reached an all-time high of 1.5 million users on Nov. In addition, in 2021, the number of people active on GameFi applications accounts for 49% of the total number of people operating on decentralized applications.

As a matter of fact, when the attention and demand towards the GameFi market is too great, the supply will follow to catch up with this trend. A series of new GameFi applications were born and converted user bases from dozens of different blockchain platforms not only on Ethereum.

The need to build new game applications and game-related platforms and tools has driven money from top tier venture capitals to flow into this market niche when this is just the beginning, investors seem to see potential in every corner of this market. In addition to gaming units like Forte with a record investment of up to $725M, Solana Ventures and Meta (renamed from Facebook) are also watching and placing the first bricks enter the GameFi market.

NFT Q4/2021 OVERVIEW

NFT KEY EVENTS AND STATISTIC

It can be said that 2021 is a successful year for NFT, this technology is getting more and more attention with the participation of influential public figures, especially artists around the world.

“Think about it this way: The internet we have allows for the easy transfer of information. We costlessly swap copies of news articles, music files, video games, pornography, GIFs, tweets, and much more. The internet is, famously, good at making information nearly free. But for precisely that reason, it is terrible at making information expensive, which it sometimes needs to be. What the internet is missing, in particular, are ways to verify identity, ownership, and authenticity — the exact things that make it possible for creators to get paid for their work.” Ezra Klein

Let’s take a look back at some NFT market metrics for Q4 and 2021:

The floor price in Q4 is hovering around 1.05 ETH. The number of wallets holding NFTs also hit an all-time high on December 30 with 11.745 new wallets entering the market.

Compared to Q3, the trading volume on NFT exchange OpenSea in Q4 is not as impressive, but in terms of average price per NFT, we can see the growth of this particular token as collections NFTs have become a digital asset – a store of value that helps investors in their portfolio.

PUNKS & APES ARE TAKING OVER TWITTER

CryptoPunks and Apes (BAYC) are the 2 most famous PFPs (Profile Picture) collections in the crypto community. Following the trend developed by these 2 OG collections, there have been countless other collections of NFTs created for the purpose of placing user avatars.

NFT is a perfect piece for social networks. They can represent an individual’s digital identity and brand image, just like brands rely on brand identities, taglines, images, brand ambassadors, and more. As an intangible asset, the crypto community can also leverage NFTs in similar ways as NFTs can become part of a personal brand and cannot be sold or separated from the owner’s identity.

Imagine you live on the internet. The way the world primarily knows you is not through your face or your clothes—it’s through your digital avatar. Of course, you are willing to spend a lot of money on something like a CryptoPunk: It’s your face to the digital world. Plus, it’s the key to entering a small, unique internet club. Being a CryptoPunk owner as a crypto-native is the equivalent of being an Augusta National member as an old-school businessperson.

Ethereum co-founder, Taylor Gerring, purchased an NFT Bored Ape Mega Mutant Serum for 888 ETH ($3.6M). Regardless of whether you believe in NFTs or not, people are still spending millions on this asset class and no sign of stopping. They are not just JPEGs but also a way for people to assert themselves and identify their personal brand on social networks. In the hierarchy of needs of psychologist Maslow, this is the highest level of need that people want to be satisfied after other needs for physical, security, love, self-esteem have been satisfied..

Currently, the current floor price of BAYC has surpassed that of CryptoPunk, at 53.9 ETH ($215,350) compared to CryptoPunk’s floor price of 52.69 ETH ($210,515).

NFT ARE THE KEYS TO ACCESS METAVERSE

Emphatically attached to the achievement of NFTs and blockchain games, the viewpoint for the metaverse and virtual universes was at that point promising. In any case, later on Facebook’s rebranding event, the metaverse viewpoint detonated.

The NFTs and digital currencies connected with metaverse projects experience a genuine worth of examination, while the interest for this sort of dapps filled. In Q4, virtual world dapps have generated more than $402M in NFT trading volume, increasing 615% the numbers seen in Q3. Plus, the number of unique traders doubled quarter-over-quarter with more than 50.000 unique traders registered in Q4. 

Games like Roblox, or Minecraft, where the community can build on top of infinite virtual space, have been quite popular since the last decade. And Blockchain-based virtual worlds are starting to gain the same type of traction. 

The price on average for virtual lands in The Sandbox surged almost 500% from the end of October. In December, The Sandbox parcels were traded for $14.976 on average, a significant growth from October’s $2.500 average. Brands and celebrities like Adidas, Atari, The Walking Dead, Snoop Dogg, and Smurfs, have taken part in The Sandbox’s virtual world. (Dappradar)

The Fashion Street Estate in Decentraland sold for 618.000 MANA ( $2.42 million). In the same timeframe, digital lands inside CryptoVoxels, another blockchain virtual world are being sold for a price 25% higher than the ones registered in October. 

CELEBRITIES AND BRANDS GO NFT

Source: Dappradar

In the narrative for mass adoption, celebrities and brands have a solid voice. 

  • Fashion giants Gucci, D&G, and Burberry make their appearance in the space after launching their respective collections. 
  • Coca-Cola partnered with Decentraland to establish unique wearables, while Pepsi launched its first 1,893 NFT (The Mic Drop) pieces.

Source: Pepsi

  • NIKE, Inc. Acquires RTFKT – A virtual shoes company that makes NFTs and sneakers ‘for the metaverse’
  • Adidas reveals new NFT project with Bored Ape Yacht Club
  • Katy Perry launched her first digital collectible NFT on Dec 14 with Theta Network

  • Legendary basketball player Michael Jordan launched NFT platform for athletes, HEIR

2022 is still going to be a sublime year for NFT

  • NFT music will thrive with the participation of famous artists, especially as musical concerts are gradually allowed to reopen in some countries and more, specifically in the Metaverse.
  • Large companies will start to accept NFT more, not only in JPEG but also as a social token that allows holders to have certain privileges, such as participation in events, meetings, networking, membership, …
  • NFTs can be leveraged to tokenize both tangible and intangible assets. Each NFT can act as a publicly transparent, trackable certificated, for any given asset, recording its trading activities.
  • NFT will gain more utility in the world of blockchain and cryptocurrency. With major brands like Visa joining the NFT, the NFT is likely to be applicable to a wide range of industries.

WEB 3

Worldwide interest in the term “Web3” also reached all-time high on Google in December, increasing about 400% since the beginning of October. 

“Web3” is a term that covers the entire Cryptocurrency market. Web3 has become a proxy for new economic ideas on how the Internet should be architected, and how individuals should share in this value creation. The Web3 ecosystem now represents an expansive ecosystem of new ways for creators and communities to monetize, and new models for internet-native communities to collaborate. 

Chris Dixon called it 

“The internet owned by the builders and users, orchestrated with tokens.” 

Eshita described the Web1 -> Web2 -> Web3 evolution as Read-Only -> Read-Write -> Read-Write-Own.

Not only are individual investors interested in Web3, but ventures capitals are also giving certain favors. In Q4/2021, the amount invested in Web3 projects reached $1.19B, an increase of 320% compared to Q3. The number of invested projects also increased from 50 projects (Q3/2021) to 62 projects in Q4/2021.

Tesla CEO Elon Musk and Twitter Co-Founder Jack Dorsey ⁠—Two of the most famous tech billionaires in the world ⁠— also recently tweeted about the keyword “Web3”.

Currently, decentralization is not really clear. However, Web3 is still a huge technological leap forward from the current centralized platforms. The future will tell how the new web quality delivered by the Web3 infrastructure will accumulate value and meet user needs for decentralization, ownership, verifiability, and enforcement.

As we move to a decentralized data-driven web, one of the key challenges will be how users and developers can efficiently and cost-effectively bring blockchain data into applications. If Web3 is to be decentralized, then a robust, secure, and economical network infrastructure is essential.

DAO

DAO stands for Decentralized Autonomous Organization. DAO is an organization model but has distinct features compared to conventional models:

  • Autonomous: This is one of the most basic factors that distinguish a DAO from a traditional organization. DAO is independent of any government, organization, or individual. A DAO like MakerDAO, can completely allow users to access and interact with its protocol from anywhere in the world, as long as they have a computer, smartphone, and Internet connection.
  • Decentralized: Currently, DAO protocols such as Uniswap, MakerDAO, FWB, UniWhale … are all accessed through the Internet, but hidden behind that is that it is built on Blockchain platforms like Ethereum. Based on blockchain technology and cryptocurrency (coin/token), DAO can become decentralized.

The decentralization of the DAO is evident in many aspects such as:

  • Infrastructure: a DAO can be accessed on any computer, phone, but if it is built on blockchains like Ethereum, Avalanche, Solana… then it is completely decentralized in terms of infrastructure. No one can fake transactions on the DAO, because then the transaction will be rejected. Infrastructure decentralization is also reflected in the fact that crypto DAO, even if banned in one place, can still launch normally in all the rest.
  • Payment, transactions: DAO still using tokens and built on blockchains like Ethereum, so as long as Ethereum is active, DAO built on it can freely interact and transact with any individual or organization, just have ETH as a fee.
  • Governance: different from traditional organizations, most of them operate in a hierarchical model (for example, the Company will have a Board of Directors, Supervisory Board, General Director, departments/departments…), DAO operates in a simpler way, any member of the DAO is welcome to propose ideas and vote. Many DAO also has a reward system for members with effective suggestions and ideas.

Because of its autonomous and decentralized feature, DAO becomes a model that is very suitable for the goal that Crypto projects aim for. It can be said that DAO has become an inevitable trend in building the management model for Crypto projects.

THE DEVELOPMENT OF DAO

In Q4/2021, DAO has grown in both size and quality. Let’s take a look at the outstanding DAO in its field right below:

According to DeepDAO’s statistics, there are currently 188 officially active DAO, managing assets up to $12.1B. Most of the big-name and market-leading projects are operating under the DAO model such as UniSwap, AAVE, MakerDAO, Olympus, BitDAO, Lido…

The benefits of using the DAO as a governance model

  • Take advantage of the great human resources. Instead of having just a few people voiced, the DAO allows the whole community to participate.
  • Avoid waste, efficiency and sensory decision making.
  • Create democracy, fairness in participating in the project.
  • Remove barriers of geography, time, skin color, ethnicity…

For Example:

The Olympus DAO model that has exploded since October is a new model for DAO funding:

  • Giving opportunities to small investors to invest in the project early
  • The project has the opportunity to build a strong community foundation right from the start

The shift in fundraising for many projects: No more Seed, Private rounds with a large number of tokens. Fundraising projects through the community itself (Wonderland, Jade Protocol, Magnet DAO, …)

DAO IN 2022

With its advantages, DAO will continue to be a popular governance model in the Crypto world. This will be a motivation for infrastructure and service projects for DAO to have the opportunity to explode and develop faster. Besides, with more and more money pouring into the market, Investment DAO, Protocol DAO will continue to be the growth trend.

[1] Neutral-carbon certification is a certification for corporations whose net carbon emission reaches approximately zero. For Phantasma, this platform commits to keep its carbon emission to zero by reducing energy consumption when users mint NFT and purchasing carbon offset contracts to compensate for this carbon emission.

EPILOGUE

Q4 has concluded an exciting and challenging journey with the Cryptocurrency Market in 2021. $BTC has proved its position as a king when trust of long-term hodlers in this coin did not show signs of shrinking. About $ETH, this number one smart contract platform is still on its way of executing important improvements to solve the scalability issue without compromising security or decentralization of blockchain.

2022 is coming, and it is safe for us to expect a brighter 2022 with the crypto market with huge potential of NFT, Web3, DAO and new smart contract platforms. 2022 will be the year that witnesses more blockchain adoption throughout many fields of life including enterprise management, finance, art…

Lastly, our Research team would like to thank you for taking your precious time to read this report. Please stay tuned for further reports to be released in the coming quarters!