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

  • The total market capitalization of cryptocurrencies has fallen to around $2 trillion from an all-time high of $3 trillion last year – down 33% overall.
  • The massive gains recorded by most cryptocurrencies in November 2021 have been wiped out.
  • However, the prices of most mainstream cryptocurrencies are still higher than they were at this time last year.

The cryptocurrency market continues to slide into a recession but most of the coins are still in better shape than they were a year ago.

When most cryptocurrencies, such as Bitcoin, Ethereum and Cardano, were trading at all-time highs in mid-November last year, analysts were so optimistic that they could go higher by the end of the year. But, then came December and January, and most cryptocurrencies went diving. As a result, the gains made in those strong days have been wiped out.

According to experts, the cryptocurrency market is about to enter a bearish phase. While this could be an opportunity to ‘buy a pullback’ – picking up cryptocurrencies at lower prices – it could also be the start of another ‘crypto winter’ similar to the one we saw before the rally of 2020.

The cryptocurrency market has gone from billions to trillions

Over the past two years, the total market value 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 a growth in the value of crypto assets.CoinMarketCap Charts, Total Cryptocurrency Market.

This does not mean that 2021 did not experience ups and downs. At one point in just a few hours in November 2021, the total value of the cryptocurrency market was worth $3 trillion.

However, since then, the prices of almost all individual cryptocurrencies have fallen. Some, at more than 40% when compared to their all-time highs.

The current price of the best cryptocurrencies compared to their all-time highs:

Currency current price Percentage increase compared to January 3, 2021 Percentage decrease compared to current price ATH for 2021 Price on Jan 3, 2021
Bitcoin (BTC) $41854.32 27.67% -39.30% $32782.02
Ethereum (ETH) $3,152.74 USD 223.19% -35.29% USD 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 USD
Ripple XRP (XRP) $0.748666 231.56% -59.32% 0.2258 USD
Polkadot (DOT) USD 24.76 146.86% -54.68% $10.03
earth moon) USD 70.76 10,590.44% -31.42% $0.6619
Avalanche (Afax) USD 87.91 2,433.43% -39.04% $3.47
Polygon (Matic) $2.11 10,460.56% -27.51% $0.01998

Source: CoinGecko ATH.

Despite the volatility, cryptocurrencies continue to grow

According to the macro charts, the cryptocurrency market moved relatively little in 2018 and 2019, but rose from 2020 onwards. Here are five cryptocurrencies that have remained in the top 30 since 2020, and how their price has risen several times.

Top five cryptocurrencies by market capitalization:

Currency Market value on January 10, 2022 Price increase during 2021 Price increase during 2020
Bitcoin $775.40 billion 9.27% 368.19%
Ethereum 362.24 billion dollars 150.17% 765.33%
XRP 34.98 billion dollars 137.04% 47.63%
Cardano $37.53 billion 283.73% 708.97%
Currency $3.43 billion 2.93% 212.10%

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

Criteria: Inline coins that have been in the top 30 at least since 2020, across denominations.

These five cryptocurrencies have managed to make gains even in a relatively low-key market, consistently over the years – with huge profits in some cases. Some have even seen gains of up to three times in price, with only a modest 2% to 5% increase in the token supply.

Most cryptocurrencies at the beginning of 2022 are still profitable on their price seen at the beginning of 2021.

For HODLers – long-time investors – buying and holding major cryptocurrencies over the course of a year turned out to be profitable even when the market as a whole was contracting. However, it should be noted that meme coins such as Dogecoin or Shiba Inu that have been gained from speculation, may not necessarily see the same trend. Going back to doing the research, it was the demand for coins that had a use case and supply that remained constant, among other factors, that returned gains to investors over an extended period of time.

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

See also:
Here are ten eco-friendly cryptocurrencies to watch out for in 2022