Research Summary
The report provides an analysis of the significant growth experienced by various cryptocurrencies during the 2021 bull run. It highlights the exponential increases in market capitalization of coins such as Dogecoin, Rune, Filecoin, Polkadot, Axie Infinity, Internet Computer, Telcoin, Chiliz, Binance Coin, Flow, Gala, Serum, Theta, VeChain, Shiba Inu, Ethereum Classic, Holo, and PancakeSwap.
Key Takeaways
Exponential Growth in Cryptocurrency Market Caps
- Dogecoin’s Dramatic Rise: Dogecoin experienced a nearly 10x increase in a single day in January 2021, despite already being a billion-dollar coin.
- Rune’s Rapid Expansion: Rune’s market cap grew from $200 million to almost $5 billion in just five months.
- Filecoin’s Astonishing Valuation: Filecoin reached a fully diluted valuation (FDV) close to $400 billion, nearly matching the current market cap of Ethereum.
- Polkadot’s Impressive Growth: Despite starting the bull run with a $5 billion market cap in December 2020, Polkadot managed to increase by 8x in two months, reaching a top market cap of $56 billion.
- Axie Infinity’s Remarkable Rise: Axie Infinity’s market cap went from $200 million to $10 billion in five months, with a top FDV of $43 billion.
Unprecedented Launches and Returns
- Internet Computer’s Massive Launch: Internet Computer launched with a $250 billion FDV, demonstrating that high FDVs are not a new phenomenon in the crypto market.
- Telcoin’s Incredible Returns: Telcoin’s market cap went from $10 million to $3 billion in five months during the previous cycle, a 300x increase.
- Chiliz’s Significant Pump: Chiliz experienced a 30x increase in one month, going from a $130 million to a $4 billion market cap.
- Binance Coin’s Quick Pump: Binance Coin, worth $6 billion in early 2021, managed an 8x pump in 20 days, reaching a $50 billion market cap in February 2021.
- Flow’s Massive Pump Post-Launch: Flow launched at a $10 billion FDV and pumped to $57 billion FDV in just a few weeks after launch.
Actionable Insights
- Monitor Market Trends: The report highlights the importance of keeping a close eye on market trends and the potential for rapid growth in the cryptocurrency market. Investors should stay informed about market movements to make timely decisions.
- Research Potential of Altcoins: The significant growth of various altcoins suggests that investors should research the potential of these coins. Understanding their use cases, technology, and market sentiment could provide valuable insights.
- Consider Market Cap in Investment Decisions: The report emphasizes the importance of considering a coin’s market cap in investment decisions. Coins with lower market caps have shown the potential for exponential growth.
