- Broker eToro shared exclusive crypto data with Insider about what was hot and what wasn’t in 2021.
- eToro has a whopping 23 million users, so numbers of open interest can provide great insight.
- Bitcoin solidly held its number one position but most of the others rose or fell in popularity.
Crypto is a fast-moving space, as most people know. However, the speed with which the popularity of an asset that saw high demand just a year ago can decline may surprise many.
Data from retail investment and trading platform eToro revealed which cryptocurrencies have fallen like a stone among its global client base, and those that have snatched their place in the global rankings.
Listings can give a rough estimate of popularity, it’s a very rough measure, with a lot of factors interfering. Nor does it distinguish between retail investors and institutional buyers or venture capital buyers.
eToro has a whopping 23 million users worldwide, so its open interest numbers can provide a clearer view of the changing of the guard in the retail investment cryptocurrency market.
The trading platform shared exclusive data with Insider on the following top 20 rankings for the end of 2021 vs. 2020.
The first thing to emerge is that Bitcoin has already increased in popularity, despite weakening at the end of last year.
While many older cryptocurrencies have lost popularity, the original coin has retained its luster, with a 223% increase in open positions – enough to keep it steady in the number one position.
This is arguably a surprising discovery given the view that Bitcoin has been overtaken by many other currencies in terms of returns and no longer offers the potential for massive profits in the way that altcoins can. Bitcoin gained a respectable 60% last year. But smaller competitors like solana gained more than 4000%, while the meme token dogecoin gained more than 140%.
Another thing that is jumping around is that the second cryptocurrency by market capitalization, Ether, has been relegated to the third position on eToro by the rival Cardano blockchain.
Beyond bitcoin and ether, the “older” generation of cryptocurrencies has been wiped out. The likes of XRP, stellar, and litecoin have plummeted in popularity among eToro users.
Dash, EOS, Tezos, Bitcoin Cash, and NEO have all seen significant declines in just 12 months.
The dogecoin and the shiba inu spinoff take their places in the charts, taking 4th and 7th places, respectively.
Metaverse Coin Mana (Decentraland) made a boost by jumping straight to 13th place, amid a frenzy of interest in the space during the latter part of 2021 after Facebook’s name was changed to Meta.
Blockchain solana and public oracle token chainlink both started as new tokens on the platform, but finished in the top 20 most open positions.
“2021 was a momentous year for crypto assets, with bitcoin and ether hitting all-time highs on more than one occasion,” said Simon Peters, crypto market analyst at eToro. “From the adoption of El Salvador as a legal tender, to the arrival of ETFs and institutional adoption, bitcoin is now firmly entrenched in the investment world.”
He continued, “DeFi stepped onto the scene in 2021. Although many projects have been up and running for some time, the last year really was the moment when an increasing number of investors embraced DeFi.”
“With decentralized projects keen to give a say to token holders, investors now have more say than ever in areas such as governance and rewards. With trends like Web 3.0 and the metaverse set to only grow in 2022, we expect it to grow even stronger. DeFi is getting stronger as it becomes more entrenched in the mainstream.”