We often hear about cryptocurrencies that have reached incredible values, but many digital assets work in the opposite direction.

It hasn’t been an easy year for crypto, with Bitcoin dropping like a stone and Ethereum seeing its market value halve in a matter of months.

So we took a look at the ten worst performing cryptocurrencies of 2022 and the factors contributing to their decline.

1. Filecoin (FIL)

filecoin is a cloud storage blockchain network that provides data storage for several applications, including Estuary, Chain Safe, and Space Storage. As a competitor to Google Drive and Dropbox, the idea is that Filecoin is cheaper and more secure.

Despite no particular factors or events, the FIL network fell from a price of £30.76 on January 1, 2022 to £4.65 on July 14, a drop of 85%.

The crypto peaked in September 2021 with a valuation of £103.79, but was hit by a selloff from investors.

Analysts can’t pinpoint a specific reason for the sudden drop, but a partial rally towards the end of January did little to halt the bearish trajectory.

From there, a FIL is now valued at £5.10, a slight improvement, but shows a market cap decline of 7.66%.

2. Axie Infinity (AXS)

Although it is one of the most played blockchain games with over 1 million players, Axie Infinity lost 85% of its token value in the first seven months of 2022, dropping from £81.20 to £12.04.

Once tipped for success as a popular NFT game, the network suffered a hacking breach in April 2022, where criminals infiltrated the underlying blockchain and stole 174,000 ETH and £22.5 million USDC working bag with a total flight worth around £. 532 million.

AXS had already fallen with falling daily players and issues with gaming infrastructure changes, but the successful hack accelerated a downward move.

At its peak, an AXS was valued at £143.07 and today sells on the stock exchange for £11.47 as the fall in value continues to worsen.

3. Solana (SOL)

Several crypto analysts expected Solana to become a heavyweight, with a proof-of-stake model capable of processing 3,000 transactions per second as a scalable cryptonet.

Despite remaining the ninth highest-ranked token on CoinMarketCap, SOL has fallen over 80% in value, dropping to £29 from a high of £224.99 in November last year.

The crash started in January 2022. Solana rose from £154.89 to £68.14 in mid-March, with a short-term bounce to £118.42 in early April.

That changed course in May when a dApp called Candy Machine put a newly created NFT up for sale mistakenly using a fixed price, inadvertently prompting bots to overwhelm the SOL network with millions of transactions that ultimately destroyed it. plant.

Solana developers fixed the issue within hours and said they have since corrected the weakness, but investors seem unconvinced.

4. Avalanche (AVAX)

avalanche was a winner in 2021, completing a trade in four seconds and delivering returns of over 3,100% – but in 2020 the cryptocurrency lost most of those gains.

The Layer 1 blockchain hosts networks and dApps, leveraging a unique scalable architecture that allows users to deposit crypto into smart contracts and earn returns.

Things were looking good, starting the year at £97.85 from an all-time high of £126.50, with a minimum drop of £14.39 during a bear market.

Between April and May, things turned sour, with daily transactions dropping from 900,000 to 200,000, worrying investors and causing users to look elsewhere.

Loss of confidence caused prices to fall from £83.46 to £22.87, with continued losses representing an 82.6% drop this year. AVAX is currently trading at £16.56.

5. Chronos (CRO)

Cronos is a Crypto.com trading token where users earn CRO using their debit card, much like cashback paid in crypto. In January, one CRO traded for £0.51, falling to £0.27 in four months.

On May 1, 2022, Crypto.com decided to significantly reduce the rewards available to certain cardholders, causing Chronos drop 30% in seven days.

The cryptocurrency reached a high of £0.84 in November 2021. Today it is valued at £0.095 with no signs of recovery, having lost 79.7% of its value.

6. Algorand (ALGO)

There was a record number of Algorand users in 2021, a proof-of-stake network that can handle one million daily transactions and up to 1,000 per second. Additionally, Algodex and Tinyman are hosted on Algorand, each with over 1,000 users.

The decentralized open-source network was designed to offer greater speed, security and scalability than other blockchains and reached £2.45 per ALGO in September 2020.

When the developer confirmed a FIFA World Cup sponsorship deal in May 2022, the coin had already fallen to £0.54 from £1.44, and although the announcement helped prices recover , it was short-lived.

In 2022, ALGO fell 80.24% and is now trading at £0.26 per token.

7. Flow (FLOW)

To flow has seen an 83% fall in 2022 so far, although there is no clear reason why investors decided to sell, and the cause may be attributable to the bear market.

The smart contract and layer-one blockchain platform is decentralized and allows developers and users to earn rewards, with FLOW being used to pay transaction fees.

Flow can handle 10,000 transactions per second with validation speeds of 2.5 seconds as a proof-of-stake network that includes the Solitaire Blitz card game with 21,000 active users.

From a high of £24.71 in August last year, FLOW fell to £1.34 in July 2022 and rebounded to £1.61 in September.

8. Polygon (MATIC)

Polygon was launched in 2012 and was a leading proof-of-stake network. The network hosts Ethereum applications, with play-to-earn games like Sunflower Land.

Even with a large user base, Polygon didn’t have a good year, losing 72.5% in value from January to July, falling from a market value of £2.21 to £0.61.

As of January 2022, investment in Polygon apps and games was £4.71 billion, which has since been reduced to less than £1.73 billion, likely due to market conditions as no event caused such a sale.

Today, MATIC is ranked 12th among cryptocurrencies with a market capitalization of £6,940 million, but has some work to do to reach its previous peak value.

9. The sandbox (SAND)

THE SAND is the native token used on the voxel gaming platform – it’s a virtual world in the metaverse where users build, buy, sell, and create digital assets, with verified items like NFTs outside of the game.

Partnerships include The Walking Dead, Care Bears and The Smurfs, among other globally recognized brands, with many investors tipping SAND over the past year.

Despite a successful alpha test in November 2021, the bear market saw the token drop from £5.12 in January to £1.04 in July, representing a decline of just under 80%.

The previous 52-week high was in November 2021, when a SAND token traded at £7.30, down from £0.77 today.

10. Internet Computer (ICP)

internet computer combines a private centralized blockchain with a public network and operates as a cloud computing solution with over 70 dApps including OpenChat, InfinitySwap and ICMoji Origins.

ICP was valued at £22.16 at the start of 2022 but fell to £6.01 in seven months, losing 72.9% of token value.

Analysts suggest the token distribution system is part of the problem, where investors transferred £1.73 billion worth of ICP tokens to exchanges, prompting other traders to sell off quickly, assuming a massive sell-off.

Top 10 Worst Performing Cryptos of 2022 FAQ

Why did the values ​​of so many cryptocurrencies fall in 2022?

Much of the decline was caused by the collapse of TerraUSD, when LUNA became worthless, exposing several major crypto firms to significant losses and causing investors to lose confidence.

When Will Crypto Markets Recover?

Markets tend to operate in cycles; in crypto, this is supposed to be a four-year process. If predictions are correct, the crypto will rebound in 2024, although there are no guarantees, and other economic factors could affect the predicted recovery.

How much money did the crypto market lose in 2022?

After a big rally in 2021, crypto markets lost an estimated £1.64 trillion, with even Bitcoin dropping 68% from its peak value.

How can you tell a cryptocurrency is about to go down?

There are several reasons why crypto can crash, related to specific events, loss of investor confidence, hack breaches or other security issues. Traders are watching the crypto closely and looking for activity that could indicate a potential selloff or other event that could push prices down.

Will Crypto Continue to Fall in 2022?

Recovery takes time, and while no one knows for sure, crypto traders and analysts expect the market to continue to decline before beginning to rebound within the next couple of years.

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