The events of this year have wiped out about $2 billion from the volume of the cryptocurrency market. In the latter case, even market leaders Bitcoin and Ethereum are trading at a discount of more than 70%. But it’s up to 2023 to prove whether this discount is a trap or not. In this article, let’s take note of the altcoin projects that have managed to survive the bear market before, according to historical data.
What happened in the crypto money market in 2022
This year, total market value (TOTAL) has dropped to just under $800 billion as investor confidence hit new lows. Unstable Blockchains, stock market scandals and the events that followed have caused a sharp drop for all cryptocurrencies. Recently, the collapse of FTX and its founder SBF sparked another wave of selling in the market.
Bankruptcies in 2022 include the collapse of Terra (LUNA-UST), the bankruptcies of Voyager Digital and BlockFi, and the dissolution of leverage through the crisis of various hedge funds such as Three Arrows Capital. The damage in the industry was so widespread that the top-performing crypto with a market cap of at least $1 billion was even a cracked token in 2022. Yes, the cryptocurrency we are talking about is Bitcoin and its graph is as follows:
Meanwhile, backlogs or sales from whales directly affected the BTC price trend. Addresses holding 1,000 to 100,000 BTC were the biggest culprits in the decline, according to Santiment’s report. Despite this, BTC has not been able to get rid of its impact as it has fallen by 64.22% in the last 365 days. cryptocoin.com as in our analysis. Some analysts expect the $8-10 range.
Due to the actions, Bitcoin whales have created a large metric to identify potential movement in the next six to twelve months. If things continue in the same way, the discussions about BTC bottoming out may stop. Santiment says BTC could be closer to $14,600 due to volume gaps. He stated that after that, it could drop to $12,200. Part of the report:
Lately, they seem to be net sellers and price does the same. We believe with confidence that we can predict BTC prices sideways or even lower in the next 6-12 months.
Altcoin market is in worse shape
Bitcoin has lost 75% since its November peak, while altcoin market losses exceed 90%. This includes numerous projects like DOGE, XRP or AVAX. Another example, Terra Classic, fell below the $1 billion market cap threshold. Let’s say that he came to this position among the top 10. Helium, Axie Infinity and The Sandbox are among the other projects that lost value. But there are worse ones at the top of the list.
This is the most undervalued altcoin project Solana (SOL). It saw massive sales from FTX’s use in its recovery efforts. Second place is HEX and third is NEAR. NEAR has lost roughly 90% of its value. Filecoin was the fourth name on the list. Algorand (ALGO) is in fifth place with a loss of 91%. Thus, the altcoin projects that used to be in great demand but are now sold by everyone consist of the following top 5.
- Left (LEFT)
- Hex (HEX)
- Near Protocol (NEAR)
- Filecoin (FIL)
- Algorand (ALGO)
Among the most depreciated in Cardano
Further down the list are Avalanche (AVAX), Cronos (CRO), Polkadot (DOT), Internet Computer (ICP) and finally Cardano. Again, well-known projects experience a loss of value around 90%.