- Crypto has been crushed across the board and all top 10 coins have been knocked out
- LUNA is the worst, near zero deaths in May
- Solana has lost 92% of its value this year, falling from the 3rd largest cryptocurrency to the 16th.
- BNB, XRP and Dogecoin were the three best performers, but still reduced by more than 56%
- Bitcoin Drops 64%, Ethereum Drops 67%
It’s safe to say that in the crypto market, it’s never been the best.The world is moving to a new interest rate paradigm and the market believes that a significant portion of the cryptocurrency space will be over-leveraged with cheap interest rates. I know it was expected.
That cheap credit is now gone, liquidity rugs have been pulled out and market prices are collapsing as a result.FTX, LUNA, Celsius and several other scandals have caused the market to go into a complete frenzy.
In this piece, we look back at the top 10 coins from the beginning of the year.
2022 seems like a long time ago
Below are screenshots taken from CoinMarketCap from the beginning of the year.
Far from $1 trillion, Bitcoin is trading near $50,000, leading the entire market. Ethereum recently dipped below $4,000, with the third spot occupied by his Binance coin, BNB.
Tether is the first stablecoin on the list at #4, with Solana jumping next at #5. The coin, which has ties to a respected entrepreneur named Sam Bankman-Fried, has touted itself as an ETH killer and is now making huge profits with a market capitalization exceeding his $50 billion.
The only other stablecoin is USD Coin at #7, while Dogecoin is #10 excluding stablecoins and #12 overall. In ninth we also have LUNA or Terra, the coin that powers the burgeoning DeFi ecosystem, Terra.
Life is good, life is fun, life is only up. Sure, the market has taken a bit of a step back from November when Bitcoin hit its all-time high of $68,739, but prices are still high and profits are streaming. Happy new year. Move on to 2022.
after one year
A year later, it could probably be argued that things are a little different.I have summarized the performance of the top 10 coins (minus the two stables) in the chart below.
Luna, apparently, almost went to zero. Solana became his second worst performer and has suffered a staggering 92% loss in 2022 to his value. Avalanche also killed investors, dropping from 11 to 18, shaving 87% of its value in the process.
On the other hand, the best performers are BNB, XRP and Dogecoin, with this trio only losing 56%/57% of their value. Despite the recent controversy surrounding Binance, BNB is closing out the year as the fifth largest cryptocurrency, overtaken by USDC and USDT.
Stablecoins were the only stablecoins that were not affected by price movements this year. Even Bitcoin and Ethereum are down 64% and 67% respectively. Again, all of these numbers would be stretched further if extended to the all-time high November.
Investors should be relieved that the year is coming to a close. The only problem is that we are still in a high interest rate environment, the industry is still dealing with the impact of FTX and the world is a very uncertain place right now.