The cryptocurrency market largely outperformed in 2021 to reach record levels at the end of 2021 as when Bitcoin hit an all-time high around $65,000 in November 2021. However, things are very different this year. 2022 is largely characterized by a bear market.
Due to the particular tightening of global monetary policies and the deterioration of traditional financial markets, there is a great lack of interest in cryptocurrencies. The latter leads to extreme price movements in a market already known for its volatility. Additionally, several scandals and bankruptcies have occurred in the crypto sphere this year putting pressure on the market.
We will discover in this article 5 crypto currencies that have lost more than 80% since the beginning of the year. Should you invest in these cryptos?
1. FTX Token (FTT)
FTT Market Cap : $488,079,987
FTT Token Rank by Market Cap 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 declared bankruptcy last week, its CEO Sam Bankman-Fried resigned and the funds of many crypto traders are still blocked. Not to mention that the platform also suffered a major hack after the company was declared bankrupt.
As you can understand, the ongoing FTX affair saga is complicated and it is already sending shock waves throughout the market. For example, Bitcoin fell from $20,000 to below $16,000 last week.
After dropping the FTT token from $22 on November 8 to below $1.50 at the time of writing, the FTX affair has significant implications for the overall cryptocurrency market, including market capitalization. today.
In 7 days, FTT lost 93.45% from $31.60 to $1.49.
2. Solana (SOL)
Solana Market Cap : $5,229,254,060
Solana ranks by market capitalization as of November 14, 2022 : 13
Year-to-date SOL token price change on November 14, 2022 : 91.93%
The SOL token is the native token related to the Solana blockchain, which is a network that offers an alternative, faster and cheaper blockchain to Decentralized Finance (DeFi) players, especially the use of Proof of History consensus among other technologies.
Solana claims to process 2,917 transactions per second for an average cost per transaction of $0.00025 at the time of writing this article.
This aspect attracts many players who want to create decentralized applications (dApps) that are quick and easy to use, with low transaction costs, and above all scalable. So Solana hosts many lending protocols, NFT markets, 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 Rank by Market Cap as of November 14, 2022 : 46
Year-to-date SAND token price change since November 14, 2022 : 89.98%
The SAND token is the utility token of the metaverse game The Sandox created by a Frenchman. The blockchain gaming platform offers a variety of 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 investments from major players, especially regarding these virtual lands. We especially think of Atari, PWC Hong Kong or even Snoop Dogg. As more celebrities join in, the prices of the game’s virtual real estate may rise.
For those who think that the metaverse is here to stay and that NFTs are crypto assets of the future, especially in the video game market, crypto currencies like SAND are promising assets that allow investing in the metaverse.
Over 7 days, Sandbox lost 28.77% from $0.85 to $0.5981.
4. Avalanche (AVAX)
Avalanche Market Cap : $4,055,563,361
Avalanche rankings by market cap as of November 14, 2022 : 18
Year-to-date AVAX token price change on November 14, 2022 : 88.85%
Avalanche, which is often seen as a competitor to Ethereum, has the main goal of facilitating the exchange of assets through the use of smart contracts and a blockchain capable of confirming transactions in record time. .
This is why it strives to offer a stable infrastructure that allows transactions to be processed almost immediately while favoring scalability through a third-generation blockchain to support Web3, especially through to use “subnets” or subnets.
Due to Avalanche’s compatibility with Ethereum applications, many high-quality players, such as Chainlink, Deloitte, and MasterCard, have chosen to work on this blockchain.
In 7 days, Avalanche lost 26.49% from $18.20 to $13.40.
5. Polkadot (DOT)
Polkadot Market Cap :$6,598,927,732
Polkadot Rank by Market Cap as of November 14, 2022 : 11
Year-to-date DOT token price change on November 14, 2022 : 79.67%
Polkadot is an ecosystem that integrates and secures special blockchains called parachains. DOT is a utility token and a management token that performs many functions in the Polkadot network, including the following: providing network management, operating the blockchain, and creating parachains.
This ecosystem is in full expansion, because it makes it possible to create bridges between different blockchains. Applications and services built on the network are therefore able to securely connect to each other and across blockchains. This lays the foundations for a new version of the web – a decentralized and truly interoperable version.
While more and more blockchains are being developed to offer a solution to niche sectors in various industries, each of them has its own set of features depending on its purpose. But this growing technology (and it’s sometimes impressive capabilities) can only grow if it’s connected.
This is why developing ways for these blockchains to communicate with each other will 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 crypto currencies?
Although this question is legitimate, it is difficult to give an answer for many reasons. The first is that cryptocurrencies are risky assets that are not suitable for all investors. It is also important to consider your risk tolerance, your starting capital, as well as your investment horizon.
While FTX Token has little chance to recover after its liquidity crisis and bankruptcy, other crypto currencies have real uses such as the interoperability of blockchains in the Polkadot network, the development of Web3 in the Avalanche blockchain or even development of the metaverse virtual environment. with The Sandbox.
If you want to take advantage of the sharp drop in these cryptocurrencies, know that there are different 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 use them in everyday life.
It is also possible to use a stock broker like XTB or eToro that allows you to trade cryptos in the short term to take advantage of volatility. In addition, using low-cost derivatives can also allow you to take advantage of falling cryptocurrency prices. But beware, these are complex financial products that must be understood before using them and that are only suitable for the most knowledgeable investors.
Image source: Freepik
All of our information is, by nature, generic. They do not take into account your personal situation and do not in any way constitute personal recommendations with the purpose of executing transactions and cannot be assimilated to a financial investment advice service, nor to any incentive to buy or sell instruments. The reader is solely responsible for the use of the information provided, without any recourse against the Cafedelabourse.com publishing company being possible. The responsibility of the publisher of Cafedelabourse.com cannot be held responsible for any wrong, missing or inappropriate investment.