2022 turned out not to be the year for crypto, as the entire market collapsed as the year went on now going into 2023 not in good standings, however the potential rebound and upside in 2023 has some people really excited for the future.
In 2022, Bitcoin started the year off at $46,300 and is now ending the year in the range of $16,800, a decrease of 63% of the year. For hardcore bitcoiners that yell and scream about a “store of value”, if you bought in 2022 your Bitcoin didn’t store any value or do anything for you sadly. The value of bitcoin and other cryptocurrencies can be highly volatile and can be influenced by a wide range of factors, including regulatory changes, market trends, and investor sentiment.
It’s worth noting that the cryptocurrency market is highly unpredictable, and the value of bitcoin and other cryptocurrencies can fluctuate significantly over time. Factors that can influence the value of bitcoin include supply and demand dynamics, technological developments, and market conditions. In addition, the value of bitcoin and other cryptocurrencies can be impacted by external events, such as economic downturns or political instability, which can affect investor confidence.
Given the highly unpredictable nature of the cryptocurrency market, it’s difficult to make accurate predictions about what will happen with the value of bitcoin or other cryptocurrencies in the future. With that said, let’s take a look at five other popular cryptocurrencies that lost a lot in value in 2022.
Terra (LUNA) -100%
This one is maybe the most obvious, as Terra lost 100% of it’s value due to it’s stablecoin TerraUSD (UST) depegging in value because hundreds of millions of dollars of it were quickly liquidated in the Anchor Protocol, completely destroying the stablecoin and in turn bringing down LUNA. Terra Luna was designed to be a stablecoin, meaning that it is intended to maintain a stable value relative to a specific asset, such as the US dollar. To achieve this stability, Terra used a system of algorithmic central banking, which adjusts the supply of Terra in response to changes in demand. Due to this massive crash and liquidation in the Achor Protocol, it ended up also reverberating across the crypto industry to other big players that had a lot invested in UST, and ultimately bankrupting Voyager, Celsius, and Three Arrows Capital (3AC).
Solana (SOL) -93%
Solana (SOL) is a blockchain platform that was launched in 2017. It is designed to be fast, scalable, and secure, and it has a strong focus on decentralized finance (DeFi) applications. Solana uses a unique proof-of-history (PoH) consensus mechanism, which allows it to achieve high transaction speeds and low fees. The platform claims to be able to handle 65,000 transactions per second, which is significantly higher than many other blockchain platforms. Solana also has a strong focus on energy efficiency, as its consensus mechanism requires less energy than proof-of-work (PoW) algorithms like those used by Bitcoin. Unfortunately, SOL has been highly connected to the now arrested fraud Sam Bankman-Fried. Due to his arrest and downfall, there has been a high correlation between him and Solana, causing the crypto project to fall a lot in 2022.
Cardano (ADA) -80%
Cardano (ADA) is a decentralized, open-source blockchain platform that was launched in 2017. It is designed to be a secure and scalable platform for the development and deployment of decentralized applications (dApps) and smart contracts. Cardano uses a proof-of-stake (PoS) consensus mechanism called Ouroboros, which allows it to achieve high transaction speeds and low fees. The platform also has a strong focus on sustainability and energy efficiency, as its consensus mechanism requires significantly less energy than proof-of-work (PoW) algorithms like those used by Bitcoin. Due to the overall sentiment of 2022 and most of the cryptocurrencies dropping in price, ADA also was impacted, dropping down 80% during the year.
Dogecoin (DOGE) -55%
Dogecoin (DOGE) is a decentralized, open-source cryptocurrency that was created in 2013 as a parody of Bitcoin. It was originally intended to be a fun and lighthearted alternative to other cryptocurrencies, and it was named after the popular “Doge” internet meme featuring a Shiba Inu dog. Dogecoin uses a proof-of-work (PoW) consensus mechanism, which allows it to achieve high transaction speeds and low fees. It has a relatively low market capitalization compared to other cryptocurrencies and is not as widely used as some other cryptocurrencies. DOGE is interesting because of it’s connection to Elon Musk. It has gained a lot of value due to him, but in same token it has also lost a lot of value due to Musk and his recent ventures with Twitter and market sentiments. Dogecoin is a wildcard, that literally could go up or down, and vary widely depending on market conditions and explicity how Elon Musk and his companies are performing. To say DOGE is a highly volatile asset is an understatement.
Litecoin (LTC) -52%
Litecoin (LTC) is an open-source cryptocurrency that was launched in 2011 as a fork of Bitcoin. It is designed to be a faster and more lightweight version of Bitcoin, with a focus on increased transaction speeds and lower fees. Litecoin uses a proof-of-work (PoW) consensus mechanism, which allows it to achieve high transaction speeds and low fees. It has a relatively high market capitalization compared to other cryptocurrencies and is widely used as a means of exchange. Litecoin like many others, did miserably during the year. Mainly because of overall market conditions, but also because there is just so much competition now with Litecoin under-developing and not really providing any market value, investors have turned away from LTC.