Rise and fall of bitcoin
On December 29, Bitcoin is trading at $47.9 thousand, following the results of 2021, its price increased by 64%. On November 10, the value of the asset set an all-time high above $69,000 (an increase of 138% since the beginning of the year).
This year there have been two sharp collapses of bitcoin. In May, the cryptocurrency exchange rate decreased by more than 30% per day, to $30,000. This provoked massive liquidations of traders’ positions in the amount of about $2.4 billion. Another collapse occurred in early December. Then the cost of bitcoin per day fell by more than 20%, to $42,000. The sharp decline in quotes caused mass liquidations of traders in the amount of more than $2.5 billion.
In October, the price of bitcoin on the Binance.US crypto exchange dropped to $8.2 thousand at the moment (a collapse of more than 90%). After that, the quotes returned to their previous values above $60,000. Later, representatives of the trading platform explained that the reason for the collapse was an error in the trader’s trading algorithm.
One of the users managed to take advantage of the collapse of the cryptocurrency by 90% and buy bitcoin at $11.1 thousand. He explained that he had placed a limit order a few months before the incident.
In May of this year, the price of the “meme” cryptocurrency Dogecoin set an all-time high above $0.73. Growth since the beginning of the year amounted to more than 16,490%. The capitalization of the token exceeded $88 billion.
Dogecoin’s meteoric rise was fueled by Twitter mentions of the altcoin by Tesla and SpaceX CEO Elon Musk.
On December 29, Dogecoin is trading at $0.17 (down 77% from its all-time high). Musk continues to make statements about Dogecoin to this day. On December 28, a businessman on Lex Friedman’s podcast stated that Dogecoin is fundamentally the best cryptocurrency he has ever seen. However, the course of the “meme” token did not react to this.
“Pump” Shiba Inu
Against the backdrop of the popularity of Dogecoin, crypto investors began to show interest in other “meme” cryptocurrencies. One of them, Shiba Inu, which developers call the “Dogecoin killer”, hit an all-time high above $0.000081 in October. Since the beginning of the year, the altcoin has risen in price by 106,578,847%. At the end of October, Shiba Inu outperformed Dogecoin in terms of capitalization for several days.
Dec 29 Shiba Inu trades at $0.000035 (down 57% from the high). According to the results of 2021, the altcoin has risen in price by 45,101,318%
Free distribution of tokens
On December 24, the OpenDAO project launched a free distribution of SOS tokens for all users of the OpenSea marketplace. During the first day, the reward was sent to 102,000 addresses (50% of the total). In less than a week, the price of the altcoin rose by 118%, exceeding $0.00000441. OpenSea users can claim their tokens until June 30, 2022, this can be done on the official website of the project. The number of coins for each user depends on his activity on the NFT marketplace – the number of transactions and trading volumes in Ethereum, DAI or USDC.
On November 9, the free distribution of Ethereum-based domain name service tokens started. It is planned to distribute 25% of the ENS emission among the users of the service. The distribution of tokens will take place until May 4, 2022. Some of the users received coins worth tens of thousands of dollars. The amount was calculated based on the time when the address was created and other parameters. The number of domain names registered per address was not taken into account.
On November 15, decentralized exchange ParaSwap issued its own PSP token and distributed 7.5% of its supply among 20,000 first users of the trading platform. The total supply of the altcoin is 2 billion. The first users of the site received coins worth about $270 million (an average of $13.5 thousand for each).
At the end of September, the Compound DeFi protocol paid out 280,000 COMP tokens worth more than $80 million to borrowers and liquidity providers free of charge. However, this happened as a result of an error when updating the smart contract that is responsible for the distribution of funds. The error led to the fact that the contract increased the amount of funds that were paid to users. One of the users withdrew COMP tokens for $27 million (at the rate as of the end of September).
In August, the decentralized crypto exchange dYdX issued its own token and distributed 50% of the issued digital coins of the user of the trading platform. 7.5% of the issued tokens (75 million) were received by users who made at least one transaction on dYdX before July 26, provided that they made at least one transaction on the exchange in August.
On February 25, decentralized exchange ZKSwap distributed 80 million native ZKS tokens to its users. Coins in a ratio of 1:1 were received by all users who hold ZKS on exchanges, wallets, in the ZKSwap network or on the ZKSwap Proof-of-stake contract. At the time of distribution, the value of ZKS tokens reached a historical maximum of $11.2.