Market Digital currencies It pretty much outperformed 2021 hitting record highs towards the end of 2021 such as when Bitcoin hit an all-time high of around $65,000 in November 2021. However, things are very different in this year 2022 which is largely marked by a market descending.
Due to the tightening of global monetary policies and the deterioration of traditional financial markets in particular, there is a significant lack of interest in cryptocurrencies. The latter leads to extreme price movements in a market it is already known for volatility. In addition, many scandals and bankruptcies occurred in encryption sphere this year that put the market under pressure.
Let’s discover 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 Token (FTT)
FTT’s market capitalization : $488,079,987
FTT token ranking by market cap as of November 14, 2022 : 209
FTT token price change year-to-date as of November 14, 2022 : 96.32%
FTT is the native token of one of the most popular exchanges: FXT. However, the latter declared bankruptcy last week, its CEO Sam Bankman-Fried resigned, and the funds of many cryptocurrency traders remain blocked. Not to mention that the platform also suffered a major hack right after the company was declared bankrupt.
As you understand, the ongoing FTX issue saga is complex and has already sent shock waves throughout the market. The bitcoin For example, it fell from $20,000 to under $16,000 last week.
After dropping the FTT token from $22 on November 8 to under $1.50 at the time of writing, the FTX case has had major implications for the overall cryptocurrency market, including its market cap. The market has gone from $1 trillion on November 8, 2022 to 800 billion dollars today.
Over the course of 7 days, FTT lost 93.45% from $31.60 to $1.49.
2 – Solana (SOL)
Solana Market Cap : $5,229,254,060
Solana’s ranking by market capitalization as of November 14, 2022 : 13
The price of the SOL token has changed year-to-date as of November 14, 2022 : 91.93%
SOL token is the token associated with the blockchain Solana It is a network that offers blockchain a faster and less expensive alternative to players in Decentralized Finance (DeFi) Especially using Proof of Date consensus among other techniques.
Solana claims to process 2917 transactions per second with an average cost per transaction of $0.00025 at the time of writing this article.
This aspect attracts many players who want to develop decentralized applications (dApps) that are fast, easy to use, with low transaction costs, and above all scalable. Thus, Solana hosts many loan protocols and marketplaces NFTDEX projects and applications from Web3.
Over the course of 7 days, Solana lost 54.55% from $31.60 to $14.41.
3. The Sandbox
Sandbox Market Cap : 897,088,551 dollars
Sandbox’s ranking by market capitalization as of November 14, 2022 : 46
SAND token price change year-to-date as of November 14, 2022 : 89.98%
SAND symbol isutility symbol From The Sandox metaverse created by a French guy. The blockchain gaming platform offers various interconnected services that allow users to create and monetize their own gaming experiences (marketplace, virtual real estate, NFT generator, VoxEdit, etc.).
The game has benefited from the investments of the major players, particularly with regard to these virtual plots of land. We will especially think of Atari, PWC Hong Kong, or even Snoop Dogg. As more celebrities join in, the game’s virtual real estate prices may go up.
For those who consider that the metaverse is here to stay and NFTs are crypto assets of the future, especially in the video game market, cryptocurrencies such as SAND are promising assets that allow investing in the metaverse.
Over the course of 7 days, The Sandbox lost 28.77% from $0.85 to $0.5981.
4. Avalanche (AFAX)
Avalanche capital market : $405,5563,361
Avalanche Ranking by Market Cap as of November 14, 2022 : 18
AVAX token price change year-to-date as of November 14, 2022 : 88.85%
Avalanche, often seen as a competitor to Ethereum, aims to facilitate the exchange of assets through the use of smart contracts and blockchains capable of confirming transactions in record time.
This is why it strives to offer a robust infrastructure that allows for almost instantaneous processing of transactions while favoring scalability by means of a third-generation blockchain to support Web3, in particular through the use of “subnets” or subnets.
Because Avalanche is compatible with apps EthereumMany quality players, such as Chainlink, Deloitte, and MasterCard, have chosen to work with the blockchain.
Over the course of 7 days, Avalanche lost 26.49% from $18.20 to $13.40.
5. Polkadot (DOT)
Polkadot Market Cap : $6,598,927,732
Polkadot ranking by market capitalization as of November 14, 2022 : 11
DOT token price change year-to-date as of November 14, 2022 : 79.67%
Polkadot is an ecosystem that collects and secures specialized blockchains called parachains. DOT is a utility token and governance token that performs several functions in the Polkadot network, including the following: providing network governance, operating blockchain and create parachains.
This ecosystem is in full expansion, as it makes it possible to create bridges between different blockchains. Thus, applications and services built on the network are able to communicate with each other securely and across blockchains. This lays the foundation for a new version of the web – one that is truly decentralized and interoperable.
As more and more blockchains are created to offer a solution to niche segments in different industries, each one has its own set of features depending on its purpose. But this growing technology (and sometimes these amazing capabilities) can only truly grow if it’s connected.
This is why developing ways for these blockchains to communicate with each other could be a boon for blockchain technology.
Interoperability, an umbrella term used in the cryptocurrency world to describe how two or more different blockchains work together, is seen as the key to getting more people to adapt blockchain technology.
Over the course of 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 single answer for many reasons. The first is that cryptocurrencies are risky assets and are not suitable for all investors. It is also important to take into account your risk tolerance, your initial capital, as well as your investment horizon.
While FTX Token has little chance of recovery after liquidity crisis and bankruptcy, other cryptocurrencies have real benefit such as block interoperability with Polkadot network, Web3 development with Avalanche blockchain or even development of a metaverse virtual environment with Sandbox.
If you want to take advantage of the sharp decline in these cryptocurrencies, know that there are different ways to get exposure to the cryptocurrency market.
It is also possible to use a file Stockbroker as such xtb where eToro Which allows you to trade cryptocurrencies in the short term to take advantage of the volatility. In addition, the use of short type derivatives can also allow you to benefit from lower cryptocurrency prices. But beware, these are complex financial products that must be mastered before they can be used and are only suitable for the most informed investors.
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