Cryptocurrencies have seen both highs and lows, and 2022 has been a challenging year for many digital assets. Here’s a look at the ten worst-performing cryptocurrencies of 2022 and the factors contributing to their decline.
1. Filecoin (FIL)
Filecoin, a cloud storage blockchain network, fell 85% from £30.76 to £4.65 by July 14, 2022. Despite no specific events, a mass investor sell-off impacted its value. Currently, one FIL is valued at £5.10, showing a 7.66% market cap drop.
2. Axie Infinity (AXS)
Axie Infinity lost 85% of its token value, falling from £81.20 to £12.04. A hacking breach in April 2022, where criminals stole £532 million, expedited the downward movement. Today, one AXS sells for £11.47.
3. Solana (SOL)
Solana has fallen over 80% in value, slumping to £29 from £224.99. A dApp mistake caused a crash, and although developers fixed the issue, investors remain unconvinced.
4. Avalanche (AVAX)
Avalanche lost most of its 2021 gains, with a price drop from £83.46 to £22.87, representing an 82.6% fall. AVAX is currently trading at £16.56.
5. Cronos (CRO)
Cronos, a Crypto.com trading token, lost 79.7% of its value, dropping to £0.095 without signs of recovery.
6. Algorand (ALGO)
Algorand has fallen 80.24% in 2022 and is now trading at £0.26 a token.
7. Flow (FLOW)
Flow experienced an 83% fall in 2022, dropping to £1.34 in July and bouncing back to £1.61 in September.
8. Polygon (MATIC)
Polygon lost 72.5% in value from January to July, dropping from £2.21 to £0.61. Today, MATIC has a £6,940 million market cap.
9. The Sandbox (SAND)
SAND, a virtual world within the metaverse, dropped from £5.12 to £1.04 in July, representing an 80% decline. One SAND token trades at £0.77 today.
10. Internet Computer (ICP)
Internet Computer fell to £6.01 in seven months, losing 72.9% of token value.
FAQ
Why have the values of so many cryptocurrencies fallen in 2022? The collapse of TerraUSD and loss of investor confidence contributed to the drop.
When will crypto markets recover? Predictions suggest a rebound in 2024, but other economic factors may affect recovery.
How much money has the crypto market lost in 2022? Crypto markets have lost approximately £1.64 trillion.
How can you tell a cryptocurrency is about to drop? Traders monitor crypto closely for activities that may indicate a potential sell-off.
Will crypto continue to fall in 2022? Recovery takes time, and the market may fall further before bouncing back in the next two years.
Conclusion
The year 2022 has been tough for many cryptocurrencies, with significant declines in value. From hacking breaches to loss of investor confidence, various factors have contributed to these drops. While the future remains uncertain, understanding these trends can provide insights into the volatile world of digital assets.
