The cryptocurrency market largely outperformed in 2021 to reach record highs in late 2021, such as when Bitcoin hit its all-time high around $65,000 in November 2021. However, things are very different in this year 2022 which is largely part characterized by a bear market.
Due in particular to the tightening of global monetary policies and the deterioration of traditional financial markets, there is a significant lack of interest in cryptocurrencies. The latter leads to extreme price movements in a market already known for its volatility. In addition, there have been many scandals and bankruptcies in the cryptocurrency sphere this year that have put pressure on the market.
Let’s find out in this article 5 cryptocurrencies that have lost more than 80% since the beginning of the year. Should you invest in these cryptocurrencies?
1.FTX Tokens (FTT)
FTT market capitalization : $488,079,987
FTT Token Ranking by Market Capitalization as of November 14, 2022 : 209
Year-to-date FTT token price change as of November 14, 2022 : 96.32%
FTT is the native token of one of the most popular exchange platforms: FXT. However, the latter filed for bankruptcy last week, its CEO Sam Bankman-Fried resigned and the funds of many crypto traders are still blocked. Not to mention, the platform also suffered a major attack soon after the company filed for bankruptcy.
As you may have understood, the ongoing FTX deal saga is complex and has already sent shockwaves throughout the market. For example, Bitcoin fell from $20,000 to a low below $16,000 last week.
After dropping the FTT token from $22 on Nov. 8 to below $1.50 at the time of writing, the FTX deal has significant implications for the overall cryptocurrency market, including market cap. The market has gone from $1 trillion on November 8, 2022 to $800 billion today.
In 7 days, FTT lost 93.45% from $31.60 to $1.49.
2. Solana (G)
Market capitalization of Solana : $5,229,254,060
Solana ranking by market capitalization as of November 14, 2022 : 13
Year-to-date SOL token price change starting November 14, 2022 : 91.93%
The SOL token is the native token associated with the Solana blockchain, which is a network that offers an alternative, faster and cheaper blockchain to decentralized finance (DeFi) players, notably using Proof of History consensus among other technologies.
Solana claims to be processing 2,917 transactions per second for an average cost per transaction of $0.00025 as of this writing.
This aspect attracts many players eager to develop decentralized applications (dApps) that are fast and easy to use, with low transaction costs and above all scalable. Solana therefore hosts numerous lending protocols, NFT marketplaces, DEX projects, and Web3 applications.
In 7 days, Solana lost 54.55% from $31.60 to $14.41.
3. The sandbox (SAND)
Sandbox Market Cap : $897,088,551
Sandbox ranking by market capitalization as of November 14, 2022 : 46
Year-to-date SAND token price change as of November 14, 2022 : 89.98%
The SAND token is the utility token of The Sandox metaverse game created by a Frenchman. The blockchain gaming platform offers several interconnected services that allow users to create and monetize their gaming experiences (marketplace, virtual real estate, NFT creator, VoxEdit, etc.).
The game has benefited from investment from major players, particularly with regards to these virtual land plots. We will think in particular of Atari, PWC Hong Kong or even Snoop Dogg. As more celebrities join, the game’s virtual real estate prices may increase.
For those who believe that the metaverse is here to stay and that NFTs are crypto assets of the future, especially in the gaming market, cryptocurrencies such as SAND are promising assets for investing in the metaverse.
In 7 days, The Sandbox lost 28.77% from $0.85 to $0.5981.
4. Avalanche (AVAX)
Market capitalization snowballs : $4,055,563,361
Avalanche leaderboard by market capitalization as of November 14, 2022 : 18
Year-to-date AVAX token price change as of November 14, 2022 : 88.85%
Avalanche, which is often seen as a competitor to Ethereum, has the main objective of facilitating the exchange of assets through the use of smart contracts and a blockchain capable of confirming transactions in record time. .
For this it strives to offer a robust infrastructure that allows transactions to be processed almost instantaneously while promoting scalability via a third-generation blockchain to support Web3, particularly through the use of “subnets” or subnets.
Due to Avalanche’s compatibility with Ethereum applications, many quality players, such as Chainlink, Deloitte and MasterCard, have chosen to work with this blockchain.
In 7 days, Avalanche lost 26.49% from $18.20 to $13.40.
5. Polka Dots (DOT)
Polkadot market cap :$6,598,927,732
Polkadot Ranking by Market Capitalization as of November 14, 2022 : 11
Year-to-date DOT token price change as of Nov. 14, 2022 : 79.67%
Polkadot is an ecosystem that combines and secures specialized blockchains called parachains. DOT is a utility token and a governance token that performs several functions in the Polkadot network, including: providing network governance, managing the blockchain, and creating parachains.
This ecosystem is booming, because it allows for the creation of bridges between different blockchains. Applications and services built on top of the network are then able to connect securely to each other and across blockchains. This sets the stage for a new version of the web: a decentralized and truly interoperable version.
As more and more blockchains are created to offer a solution to niche industries across different industries, each one has its own set of features depending on its purpose. But this growing technology (and these sometimes impressive capabilities) can only really grow if they’re connected.
This is why developing ways for these blockchains to communicate with each other could be a boon for blockchain technology.
Interoperability, which is an umbrella term used in the cryptocurrency world to describe how two or more different blockchains can work together, is seen by many as the key to getting more people to adapt blockchain technology.
In 7 days, Polkadot lost 14.14% from $6.82 to $5.81.
Is it time to invest in these cryptocurrencies?
Although this question is legitimate, it is difficult to give a clear answer for many reasons. The first is that cryptocurrencies are risky assets that are not suitable for all investors. It is also important to take into account your risk tolerance, starting capital and investment horizon.
While the FTX token has little chance of recovering after its liquidity crunch and bankruptcy, other cryptocurrencies have real utility such as the interoperability of blockchains with the Polkadot network, the development of Web3 with the Avalanche blockchain, or even the development of the metaverse’s virtual environment with The Sandbox.
If you want to take advantage of the sharp decline in these cryptocurrencies, know that there are several ways to gain exposure to the cryptocurrency market.
You can use a popular cryptocurrency exchange like Binance or Bitpanda to buy tokens for the purpose of holding them in the hope that their value will increase or to use them in everyday life.
It is also possible to use a stock broker such as XTB or eToro which allows you to trade cryptocurrencies on a short-term basis to take advantage of volatility. Furthermore, using short-type derivatives can also allow you to take advantage of falling cryptocurrency prices. But beware, these are complex financial products that need to be mastered before using them and are only suitable for the most knowledgeable investors.
Image source: Freepik
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