Decentralized Finance: A Wild Ride Through 2021

2021 was the year that DeFi exploded like a soda can shaken too much, quickly foaming everywhere and leaving us scrambling to clean up. With Ethereum commanding the stage despite its infamous gas fees, we also saw the rise of alternatives like Avalanche and Binance Smart Chain, who jumped on the EVM compatibility bandwagon. And let’s not forget, behind all this chaos lies the noble smart contract technology, acting like the glue holding this DeFi concoction together.

Algorand: The Rising Star of Layer-One Protocols

Algorand (ALGO) strutted into Q4 with the finesse of a seasoned performer. As a pure proof-of-stake blockchain, it’s designed to handle loads like a buffet restaurant, serving without breaking a sweat and at minimal costs. The introduction of the Algorand Virtual Machine in Q4 was like pouring gravy over our favorite dish—allowing DApps and NFTs a comfy spot to shine on the network.

• Partnerships with Tether and USD Coin smoothened liquidity buildups.
• A hefty $150 million ALGO Viridis Fund was launched to foster DeFi developments.
• Borderless Capital didn’t hold back either, throwing in a $500 million fund for DApps.

And remember, governance features were added, giving ALGO holders a voice louder than toddlers at a birthday party. Who wouldn’t want to influence a project they believe in?

Tezos: The Ever-Evolving Blockchain

Next up, Tezos (XTZ)—the blockchain that believes evolution doesn’t require a major overhaul. This flexible proof-of-stake network made headlines in Q4 thanks to partnerships with traditional finance institutions like the Arab Bank Switzerland. The real crowd-pleaser was its collaboration with Ubisoft for NFTs in the Ghost Recon marketplace, allowing players to buy and trade game-specific goodies like virtual badges of honor.

• Rarible also hopped on board, integrating Tezos into its NFT ecosystem.
• Tezos showcased its commitment to sustainability, reporting a 70% increase in energy efficiency in 2021.

With XTZ trading at $4.34 at the end of the year—around Halloween, it hit a spooky high of $9.17, just before a market meltdown that would send anyone in the crypto space to search for comfort snacks.

Elrond: The Future of the New Internet

Finally, we have Elrond (EGLD), which entered the scene with the ambition of becoming the go-to technology ecosystem for the ‘new internet.’ With its mind-blowing transactions capability of 15,000 TPS and costs that make you wonder if you’ve read it right (did someone say $0.001?), it’s certainly turning heads.

• A $1.29 billion liquidity incentive program by Maiar DEX had EGLD prices soaring.
• Its partnership with Romania’s Untold Festival allowed ticket purchases using EGLD—talk about making crypto relevant!

All things considered, Elrond has positioned itself as a major player, proving that sometimes, strange bedfellows can make for some wild success stories.

Looking Forward: What’s Next for These Protocols?

The exciting developments in 2021 have set the stage for a thrilling 2022. As institutional money flows in and innovative partnerships bloom, the fortunes of these layer-one protocols look bright. Remember, investing in crypto is like riding a rollercoaster—hold on tight, and maybe keep a barf bag handy unless you’ve got a strong stomach!