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Laxman Pai, Opalesque Asia: In 2021, Bitcoin has outperformed the S&P 500 index. Bitcoin is up 73%, while the S&P 500 is up 28% this year.
Blockchain data research firm Arcane Research said in a study that Bitcoin will continue this performance next year.
"Although bitcoin has beaten the S&P 500 in 2021, it had a much more volatile year. Bitcoin has increasingly behaved like a risk-on asset, amplifying the most significant movements of the stock market. Therefore, if the stock market continues to increase in 2022, bitcoin will likely outperform. But if we see a red year for the stock market, bitcoin will likely underperform," it explained.
Arcane noted the tremendous gains on Binance Coin (BNB) this year, peaking at about 1,600% in May and rounding out the year up 1,344%.
The Binance Smart Chain ecosystem has seen massive growth in 2021, taking some market share from Ethereum. Although Ethereum has lost its indisputable position as the "one and only" smart contract platform, ETH has also crushed BTC in 2021 with its 455% gain.
2021 has been one long altcoin season, as most other cryptocurrencies have crushed bitcoin, said the study.
The NFT and metaverse narratives have dominated the market this year, especially during the Autumn. The NFT craze has led to enormous gas fees on Ethereum, making the market increasingly focused on other layer-1 tokens. (Layer one refers to standalone, base-layer blockchains.)
Most of the layer-1 tokens belong to the Mid...................... To view our full article Click here
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