5 Major Crypto Events That Shaped 2021

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The year 2021 was a watershed moment for the cryptocurrency industry. From record-breaking market valuations to groundbreaking regulatory milestones, the digital asset space matured significantly—transitioning further from niche speculation to mainstream financial relevance. The total crypto market capitalization surged from $766 billion at the beginning of the year to nearly **$3 trillion**, reflecting unprecedented institutional and public interest.

This article explores five pivotal events that defined the crypto landscape in 2021, offering insights into how these developments continue to influence investment strategies, technological innovation, and global financial systems today.

1. Elon Musk’s Endorsement of Dogecoin

Few figures have had as much influence on crypto markets as Elon Musk. In 2021, the Tesla CEO repeatedly used his massive social media platform—particularly Twitter—to promote Dogecoin (DOGE), a cryptocurrency originally created as a satire of Bitcoin’s speculative frenzy.

What began as an internet joke featuring the iconic Shiba Inu “doge” meme quickly evolved into one of the most talked-about digital assets of the year. Musk’s tweets referencing DOGE triggered dramatic price surges, propelling the coin from $0.0048 to an all-time high of $0.68—an increase of over 140x.

👉 Discover how meme-driven digital assets are reshaping investor sentiment in 2025.

Interestingly, Dogecoin outpaced even Ethereum in Google’s global search trends for 2021, ranking fourth compared to Ethereum’s tenth place. While critics dismissed it as a speculative bubble, its cultural impact highlighted the growing power of community-driven value creation in decentralized finance.

This phenomenon underscored a new reality: social sentiment and celebrity influence can now move markets just as powerfully as traditional economic indicators.

2. El Salvador Adopts Bitcoin as Legal Tender

In a historic move that captured global attention, El Salvador became the first country in the world to adopt Bitcoin (BTC) as legal tender. On June 9, 2021, the nation’s legislative assembly passed the Bitcoin Law with a decisive majority, allowing citizens to use BTC for everyday transactions alongside the U.S. dollar.

The decision was championed by President Nayib Bukele, who argued that Bitcoin could enhance financial inclusion for unbanked populations and reduce remittance costs for Salvadorans living abroad.

Market reaction was immediate: Bitcoin surged by 12% within 24 hours of the announcement. More importantly, the move sparked global debate about the role of decentralized currencies in national economies.

While implementation faced challenges—including technical issues and public skepticism—it marked a symbolic turning point. Governments, central banks, and financial institutions began taking crypto policy more seriously than ever before.

This event also paved the way for other nations to explore digital currency adoption, whether through cryptocurrencies or central bank digital currencies (CBDCs).

3. Ethereum’s London Upgrade and EIP-1559

One of the most technically significant events of 2021 was the Ethereum London hard fork, implemented on August 5, 2021. This upgrade laid critical groundwork for Ethereum 2.0 and introduced EIP-1559, a revolutionary change to how transaction fees (gas fees) are handled on the network.

Prior to EIP-1559, gas fees were unpredictable and often spiked during periods of high demand. The new mechanism replaced this auction-based system with a dynamic base fee that is permanently burned after each transaction. This not only stabilized costs but also introduced deflationary pressure on ETH supply.

As network activity increases, more ETH gets burned—potentially making Ethereum a deflationary asset over time if issuance falls below burn rate.

The results were immediate: Ethereum’s price rose 9.3% within 24 hours, while Bitcoin also climbed past $40,000. Beyond price movements, the upgrade reinforced Ethereum’s position as the leading smart contract platform and boosted investor confidence in its long-term scalability roadmap.

Developers, investors, and users alike recognized that Ethereum was evolving from a simple blockchain into a robust decentralized computing infrastructure.

4. Bitcoin Futures ETF Launches in the U.S.

After years of regulatory hesitation, the United States approved its first Bitcoin futures ETF on October 19, 2021. The ProShares Bitcoin Strategy ETF (BITO) began trading on the New York Stock Exchange, marking a major milestone for crypto legitimacy.

On its debut day, BITO recorded the second-highest trading volume in ETF history—a clear signal of institutional appetite.

The approval opened the floodgates for traditional investors who previously lacked accessible exposure to Bitcoin without holding the asset directly. It bridged the gap between conventional finance and the crypto economy, enabling retirement accounts, mutual funds, and retail brokerage platforms to include Bitcoin-linked products.

Bitcoin responded with a sharp rally, breaking above $66,000—a new all-time high at the time.

👉 Learn how ETF approvals are accelerating mainstream crypto adoption in 2025.

This event signaled that regulators were beginning to accept digital assets as a permanent fixture in modern finance. Since then, multiple spot Bitcoin ETF applications have been filed, suggesting further integration is on the horizon.

5. Facebook Rebrands to Meta and Champions the Metaverse

October 28, 2021, saw tech giant Facebook rebrand itself as Meta, signaling a strategic shift toward building the metaverse—a collective virtual space blending augmented reality, virtual reality, and blockchain technology.

CEO Mark Zuckerberg declared that Facebook would transform from a social media company into a metaverse company over the coming years. The announcement sent shockwaves across both tech and crypto industries.

Cryptocurrencies tied to virtual worlds experienced explosive growth overnight:

These platforms leverage blockchain, NFTs, and decentralized governance to enable true digital ownership—allowing users to buy land, create content, and monetize experiences in virtual environments.

While still in early stages—primarily focused on gaming and social interaction—the metaverse vision relies heavily on crypto infrastructure for identity verification, asset ownership, and value transfer.

NFTs, in particular, emerged as essential components due to their unique, non-duplicable nature. They represent everything from virtual wearables to digital art within these immersive worlds.

Frequently Asked Questions (FAQ)

Q: Why was 2021 such a big year for cryptocurrency?
A: 2021 saw record adoption by institutions, landmark regulatory approvals like the Bitcoin ETF, country-level legal recognition (El Salvador), and major tech shifts (Meta’s rebrand). These factors combined to push market cap near $3 trillion.

Q: Did Elon Musk really affect Dogecoin’s price?
A: Yes. Musk’s repeated mentions of Dogecoin on social media directly correlated with significant price spikes. His influence demonstrated how public sentiment and celebrity endorsements can drive market movements in crypto.

Q: What is EIP-1559 and why does it matter?
A: EIP-1559 reformed Ethereum’s fee structure by introducing a base fee that’s burned instead of paid to miners. This reduces inflation and can make ETH deflationary under high usage—boosting long-term value potential.

Q: Is the metaverse dependent on cryptocurrency?
A: While not all metaverse projects use crypto, decentralized versions rely on blockchain for verifiable ownership of digital assets via NFTs and secure peer-to-peer transactions using cryptocurrencies.

Q: How did the Bitcoin ETF impact retail investors?
A: It gave retail investors a familiar way to gain exposure to Bitcoin through traditional brokerage accounts without needing wallets or private keys—lowering entry barriers significantly.

Final Thoughts

The events of 2021 collectively accelerated the integration of cryptocurrency into global finance and culture. What once seemed like fringe innovations—meme coins, decentralized networks, virtual economies—are now part of serious discussions among policymakers, investors, and technologists.

As we look ahead, the foundations laid in 2021 continue to shape developments in DeFi, Web3, NFTs, and digital identity. With increasing regulation, maturing infrastructure, and broader public understanding, the next phase of crypto growth promises even deeper societal impact.

👉 Stay ahead of emerging trends shaping the future of digital finance in 2025.

Whether you're an investor, developer, or curious observer, understanding these pivotal moments is key to navigating the evolving landscape of money, technology, and human interaction in the digital age.

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