Bitcoin, Ethereum and others have lost nearly 40% since their record highs, but investors are still better off than a year ago

  • The cryptocurrency’s overall market cap value has fallen to around $ 2 trillion from its all-time high of $ 3 trillion last year, a decline of 33% in total.
  • The massive gains recorded in November 2021 by most cryptocurrencies have been wiped out.
  • However, the prices of most traditional crypto coins are still higher than they were at this time last year.

The cryptocurrency market continues to roll into the doldrums, but most coins are even better off than a year ago.

When most cryptocurrencies, like Bitcoin, Ethereum, and Cardano, were trading at all-time highs in mid-November last year, analysts were optimistic about the possibility of climbing even higher by the end. of the year. But, then came December and January, and most cryptocurrencies took a dip. As a result, the gains made during those heady days were wiped out.

According to experts, the cryptocurrency market is about to enter a bearish phase. While this could be an opportunity to ‘buy down’ – acquire cryptocurrencies at a low price – it could also be the start of another ‘crypto winter’ similar to the one seen before the 2020 rise.

The cryptocurrency market has grown from billions to billions

Over the past two years, the total market capitalization of crypto assets has grown from $ 192 billion in January 2020 to $ 758 billion in January 2021 and $ 2.24 trillion in January 2022.

The long-term trend has seen growth in the value of crypto assets.CoinMarketCap Charts, Total Cryptocurrency Market Cap.

That’s not to say 2021 hasn’t had its ups and downs. At one point, for just a few hours in November 2021, the overall cryptocurrency market was worth $ 3 trillion.

However, since then the prices of almost all individual cryptocurrencies have fallen. Some, over 40% from their historic highs.

Current price of major cryptocurrencies compared to historical records:

Currency Current price Percentage increase from January 3, 2021 Percentage decrease from current 2021 ATH price Price as of January 3, 2021
Bitcoin (BTC) $ 41,854.32 27.67% -39.30% $ 32,782.02
Ethereum (ETH) $ 3,152.74 223.19% -35.29% $ 975.51
Binance Coin (BNB) $ 439.35 967.68% -35.93% $ 41.15
Solana (SOL) $ 141.33 6,443.06% -45.30% $ 2.16
Cardano (ADA) $ 1.17 470.73% -62.11% $ 0.205
XRP Ripple (XRP) $ 0.748666 231.56% -59.32% $ 0.2258
Polkadot (POINT) $ 24.76 146.86% -54.68% $ 10.03
Terra (LUNA) $ 70.76 10,590.44% -31.42% $ 0.6619
Avalanche (AVAX) $ 87.91 2,433.43% -39.04% $ 3.47
Polygon (MATIC) $ 2.11 10,460.56% -27.51% $ 0.01998

Source: CoinGecko ATH.

Despite volatility, cryptocurrencies continue to grow

According to the macro charts, the crypto market changed relatively little in 2018 and 2019, but then rose from 2020. Here are five cryptocurrencies that have remained in the top 30 since 2020, and how their price has multiplied. by many.

The top five cryptocurrencies by market value:

Currency Market capitalization as of January 10, 2022 Price increase in 2021 Price increase in 2020
Bitcoin $ 775.40 billion 9.27% 368.19%
Ethereum $ 362.24 billion 150.17% 765.33%
XRP $ 34.98 billion 137.04% 47.63%
Cardano $ 37.53 billion 283.73% 708.97%
Monero $ 3.43 billion 2.93% 212.10%

Source: CoinMarketCap historical data charts, snapshot for the first week of 2022, 2021 and 2020.

Criteria: included parts that existed in at least the top 30 since 2020, in all categories.

These five cryptocurrencies have been able to reap gains even in a relatively unenthusiastic market, consistently over the years – with outsized profits in some cases. Some have even seen their price increase up to 3 times, with only a modest 2-5% increase in the token supply.

Most cryptocurrencies at the start of 2022 are still winning compared to their price seen in early 2021.

For HODLers – longtime investors – buying major cryptocurrencies and holding them for a year has proven to be profitable even when the overall market has slowed. However, it should be noted that coins such as Dogecoin or Shiba Inu which have benefited from speculation, may not necessarily see the same trend. In a throwback to “doing the research,” coins that had a use case, had demand, and remained stable in supply, among other factors, were those that provided investors with earnings over a long period of time.

Disclaimer: Do your own research (DYOR) before making any investments, cryptocurrencies, or anything else. This article is for educational purposes and not intended to be financial advice.

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