Singapore’s cryptocurrency scene has been recently hit by a series of crisis from the implosion of TerraUSD and its resultant contagion, the collapse of cryptocurrency hedge fund – 3 Arrows Capital and the suspension of Hodlnaut’s services. “Crypto winter” has come to our sunny island after the peak of cryptocurrencies during the end of 2021.
While no one know how long this crypto winter would last, there are some signs that the worst is over. Bitcoin, still the dominant cryptocurrency at almost 40%, is now trading at around $20,000, up from its lowest point this year near $17,700.
For the curious, here are the top 10 worst performing cryptocurrencies this year.
Note: Prices quoted are in US$ and accurate as of 31 August 2022, taken from CoinMarketCap. Only cryptocurrencies with at least 1 billion market capitalisation are included in this compilation.
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#10 Elrond (EGLD)
Current Market Cap: $1.27 billion
Current Price: $55.00
Year To Date: -77.47% ⬇️
Elrond is a blockchain project that uses sharding to improve scalability. Intended for distributed apps, enterprise uses cases and the new internet economy, Elrond is scalable, secure and developer-friendly.
The Elrond eGold (EGLD) token is used for everything from staking, governance, transactions, smart contracts and validator rewards on the Elrond Network.
EGLD’s 52-week high was $542.58 in November 2021.
#9 Flow (FLOW)
Current Market Cap: $2.09 billion
Current Price: $2.01
Year To Date: -77.99% ⬇️
Flow is a decentralised, developer-friendly layer one blockchain and smart contract platform. Its architecture allows the network to serve billions of users without sharding, maintaining decentralisation.
FLOW token is used by validators, platform users and developers to earn a reward. It is also used a transfer fee in transactions as well as a governance token.
FLOW’s 52-week high was $28.79 in August 2021.
#8 Hedera (HBAR)
Current Market Cap: $1.36 billion
Current Price: $0.06459
Year To Date: -78.53% ⬇️
Hedera is an enterprise-grade public network for the decentralised economy that allows individuals and businesses to create decentralised applications (DApps). Unlike most other cryptocurrencies, Hedera is not built on a conventional blockchain but on a distributed ledger technology called a Hashgraph. This allows it improve on areas like speed, cost and scalability.
HBAR is used in Hedara services such as smart contracts, file storage and regular transactions. It is also used to secure the network when users stake their tokens to help maintain the platform’s integrity.
HBAR’s 52-week high was $0.5701 in September 2021.
#7 Cronos (CRO)
Current Market Cap: $3.14 billion
Current Price: $0.124
Year To Date: -78.76% ⬇️
Cronos is the decentralised, open-source blockchain developed by Crypto.com, a payment, trading and financial services company.
CRO is the utility token of the Cronos chain. Users can stake their coins on the chain to act as validators and earn fees for processing transactions on the network. The coins can also be used to settle transaction fees. Users of the Crypto.com Pay payments app can earn up to 10% cashback by sending crypto to friends. Users of their Metal Visa Debit can also stake CRO to earn token rewards.
CRO’s all-time peak was $0.9698 in November 2021.
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#6 Solana (SOL)
Current Market Cap: $11.32 billion
Current Price: $32.34
Year To Date: -81.86% ⬇️
One of the major cryptocurrencies, Solana is currently ranked #9 on CoinMarketCap. However, that has not shielded Solana from the ravages of the crypto winter and a 80% decline this year. The Solana protocol is designed to facilitate the creation of decentralised apps (DApps) with a focus on decentralised finance (DeFi) solutions.
SOL is staked to validate transactions on the network. It also enables users to participate in governance processes, receive rewards and pay gas fees.
SOL’s all-time peak was $260.06 in November 2021.
#5 Avalanche (AVAX)
Current Market Cap: $5.86 billion
Current Price: $19.81
Year To Date: -82.58% ⬇️
Avalanche is a layer one blockchain that hosts decentralised applications (DApps) and custom blockchain networks, much like Ethereum. Avalanche’s scalability comes from its unique architecture where three individual blockchains (Exchange Chain, Contract Chain and Platform Chain) form the Avalanche network. The individual blockchains use different consensus mechanisms based on their use cases.
AVAX is the native token of Avalanche and is traded on the Exchange Chain.
AVAX’s all-time peak was $146.22 in November 2021.
#4 Algorand (ALGO)
Current Market Cap: $2.06 billion
Current Price: $0.2977
Year To Date: -82.87% ⬇️
Algorand is a decentralised, open-source blockchain network that supports other crypto applications. It was built to solve the three common issues that plague most blockchain systems simultaneously: speed, security and scalability.
It was founded by Silvio Micali, a professor of computer science at MTI and recipient of the Turing Award in 2012 for his fundamental contributions to the theory and practice of secure two-party computation, electronic cash, cryptocurrencies and blockchain protocols.
At its peak in Sept 2021, ALGO commanded a high of $2.83.
#3 Filecoin (FIL)
Current Market Cap: $1.59 billion
Current Price: $5.84
Year To Date: -83.69% ⬇️
Filecoin is a decentralized storage system that aims to “store humanity’s most important information.” Filecoin’s decentralized storage systems allow people to be their own custodians of their data, as well as makes the web more accessible to people worldwide. It also leverages its decentralized nature to protect the integrity of a data’s location, making it easily retrievable and hard to censor.
FIL coins allow users to participate in the Filecoin economy or market for data where users can sell their storage spaces to other users who are looking to rent.
FIL’s 52-week high was $119.97 in September 2021.
#2 The Sandbox (SAND)
Current Market Cap: $1.43 billion
Current Price: $0.972
Year To Date: -83.73% ⬇️
A play-to-earn (P2E) game, The Sandbox metaverse is a blockchain virtual world that allows users to create, build, buy and sell digital asset within the metaverse. The blockchain ensures that any items traded or built in the game can be verified out of the game environment as NFTs
SAND is The Sandbox’s utility token, and it is used for transactions.
SAND’s 52-week high was $8.44 in November 2021.
#1 Axie Infinity (AXS)
Current Market Cap: $1.19 billion
Current Price: $14.34
Year To Date: -84.75% ⬇️
The former darling of play-to-earn (P2E) NFT gaming, Axie Infinity had a (then-thriving, now-shrinking) cottage industry of Filipino players dedicated to playing this blockchain game for a living. Axie Infinity Shards (AXS) is the governance token of Axie Infinity.
Axie Infinity was hacked in April 2022 when about 174,000 ETH and almost 26 million in USDC were stolen via a breach through Ronin, the underlying blockchain that powers the game. Even before the Ronin hack, AXS was already on a decline due to changes in the gameplay mechanics and a fall in daily active users, and part of it can also be attributed to the overall decline in the crypto space.
At its peak in November 2021, AXS commanded a high of $165.37.
Read Also: 6 Things You Need To Know About Axie Infinity, CryptoKitties and Other Play-to-Earn Crypto NFT Games
The De-peg and Collapse Of TerraUSD (USTC) Is A Warning
For anyone interested in buying the dip, the sudden and spectacular collapse of TerraUSD (USTC) is a cautionary tale. While naysayers have always been warning about the risky nature of investing cryptos, many new investors were still drawn in by the attractive returns (as high as 20% p.a. for staking TerraUSD). While things were great as cryptos gained popularity and prices rose higher, the house of cards collapsed with the de-pegging of TerraUSD.
Post-mortem examination of the entire sordid affair revealed that there were clues that preceded the de-pegging. Regardless of the technical reasons, the collapse of TerraUSD exposed the lack of regulation and the ripple effect in the entire cryptocurrency community.
For investors who are keen to buy into these worse-performing cryptocurrencies, keep in mind the tale of TerraUSD and do your own research.
Read Also: Cryptocurrency Investment: Past and Future Developments To Look Out For