It has been a whirlpool of a yr for the cryptocurrency market. Add to that the collapse of cryptocurrency platforms reminiscent of FTX, Terra, and Celsius Community, amongst others. As per TradingView, a community of merchants and buyers, the whole market capitalisation of cryptocurrencies has dropped by roughly 70% year-to-date (YTD), from $2.5 trillion to $770 million. Nonetheless, the listing of the worst-performing cryptocurrencies for 2022 doesn’t embody Bitcoin or Ethereum.
- Terra LUNA
The market valuation of Terra LUNA dropped by 99.99% in Could, and that precipitated fairly a stir. But it surely was the algorithmic stablecoin TerraUSD (UST), which precipitated the unraveling.
In the meantime, Do Kwon, the founding father of Terra, proposed a fork to resurrect the challenge after it imploded. Terra ultimately skilled a series break up, with the brand new chain present as Terra 2.0 and the previous chain persevering with as Terra Basic. After its launch in late Could 2022, Luna Basic (LUNC) elevated by nearly 100% whereas LUNA (LUNA2) decreased by about 40% throughout the identical timeframe.
- FTX
FTX was used as a local token by FTX, which failed in November following a liquidity disaster. This was adopted by the arrest of FTX CEO Sam Bankman-Fried. The token nonetheless trades on a variety of exchanges, however with low quantity and liquidity.
- Solana (SOL)
The layer-1 blockchain protocol Solana crashed 93.35% YTD on account of a string of unfavourable bear markets in 2022. This consists of six community outages all year long, a pockets based mostly in Solana that was breached for $200 million, and Solana’s connection to FTX. SOL was one of many high cryptocurrencies of 2021 and had a return of over 9000%. The coin was in style in 2021, however in January 2022, its value fell by 44.1%, making it one of many high losers for the time interval.
- Axie Infinity (AXS)
In 2022, the AXS market has proven a persistent downward development. Play-to-earn (P2E) gaming ecosystem Axie Infinity makes use of AXS primarily as its governance token. Moreover, it served as an accepted fee within the Axie Infinity market, the place gamers may purchase in-game nonfungible tokens (NFT). AXS has skilled a YTD decline of roughly 93%, making it one of many worst-performing property within the present bear market.
- The Sandbox (SAND)
Customers can create, personal, and monetise their gaming expertise on Sandbox utilizing non-fungible tokens (NFTs) and The Sandbox SAND, the platform’s utility token. Nonetheless, regardless of its preliminary recognition, as per a report by DappRadar, a cross-blockchain browser, the platform now solely has 500 or fewer distinctive customers. The demand for SAND has been impacted by the decrease turnout throughout all spot exchanges, which has precipitated its value to say no by 93.50% YTD.