According to CoinMarketCap.com, the total value of more than 21,600 digital currencies dropped below the value of $ 1 trillion after reaching a peak of around $ 3 trillion in the second week of November 2021. It can be argued that this can be attributed to a number of digital currency projects they have did not live up to expectations.
Despite the fact that cryptocurrencies are still in their infancy and are constantly evolving, some projects and related coins are definitely bad news. Here is a list of three popular cryptocurrencies you should avoid in November.
ApeCoin is a cryptocurrency created by Yuga Labs. This same company also brought us the NFT Bored Ape Yacht Club and its Mutant Apes spinoff. The DAO ApeCoin manages this cryptocurrency.
Apecoin took the cryptocurrency market by storm when it launched. This ERC-20 token offers holders a special place within the APE ecosystem. It is an ecosystem governance token that allows ApeCoin holders to participate in the ApeCoin DAO. Users can access games, merchandising, events and services using this token.
ApeCoin has lost nearly 80% of its value from its all-time high. The NFT market has run out of strength and until ApeCoin demonstrates tangible value and utility, it’s not worth buying.
Axie Infinity (AXS)
AXS is an Ethereum token that powers Axie Infinity, a blockchain-based game where players fight, collect and build a digital empire for their pets. AXS holders can earn rewards by putting their tokens into play, playing and voting in critical governance decisions.
Axie Infinity sets itself apart by allowing users to own their Axies using non-fungible tokens (NFTs). For decades, PC and console game developers have retained ownership of all in-game inventions, blockchain-based games have promised to revolutionize all of this by giving players ownership of their creations and the ability to monetize them.
However, according to TokenTerminal.com, Axie Infinity only generated $ 1.6 million in dApp protocol revenue in the past 180 days, through November 2, 2022. Axie Infinity’s revenue grew from $ 126, $ 5 million in January 2022. to $ 3.2 million in June 2022, according to being[In]CryptoSearch.
Furthermore, the interest in NFTs as a negotiable instrument or store of wealth has almost disappeared. Bloomberg data shows that NFT’s monthly trading volume increased from $ 17.2 billion in January 2022 to $ 466.9 million in September 2022. For those following the developments, that looks like a 97% drop. And a big setback for a gaming-focused company based on NFT character ownership and NFT market transactions.
Shiba Inu ($ SHIB)
Shiba Inu is famous for offering what could be the largest annual increase in an investable asset in history. Holders of SHIB posted gains of over 121,000,000% on October 27, 2021, from an initial value of $ 0.0000000000073 per SHIB coin on January 1, 2021. Shiba Inu finally ended the year 2021 with a gain of approximately 46,000,000% after a fall. The digital currency has shown how effective the fear of getting lost (FOMO) investment in the cryptocurrency industry can be.
However, Shiba Inu lacks the competitive advantages and distinction to stand out among over 21,600 cryptocurrency projects. Shiba Inu is basically an ERC-20 token on the Ethereum platform. Although Ethereum is a popular choice for dApp developers, its popularity has resulted in rather slow processing times and high transaction costs.
SHIB is also not a popular payment currency. Despite the buzz on Twitter, the number of Shiba Inu merchants on Cryptwerk has remained stable this year (659, as of November 2022).
This is likely due to the fact that SHIB tokens have lost up to 91% of their value in the past year and companies are reluctant to accept such high volatility.
Although the creators of Shiba Inu are looking to develop blockchain-based games, the popularity of NFTs and blockchain-based games appears to have peaked. The hype that prompted SHIB to make significant progress in 2021 simply cannot be replicated.
Post up Hide the summary