The exuberant peaks of the crypto business in 2022 fell into an extended crypto winter and left many of the sector’s top companies belly up.
The aftermath of the shutdown of several large cryptocurrency exchanges has made concerns about liquidity and solvency a big topic of conversation throughout the market.
At the beginning of the year, the total market capitalization of all cryptocurrencies was estimated to be $2.2 trillion. By the end of 2022, this amount would fall below $800 billion. Therefore, this shows a great deal about the events of the period.
As 2022 comes to a close, we take a quick look at the five best-performing cryptocurrencies of the year, along with some of the most memorable events in the sector.
Top 5 Crypto: Ethereum (ETH) – Market Cap: $148 Billion
After outpacing bitcoin by more than 350% in 2021, Ethereum (ETH) ranked tenth among cryptocurrencies in 2022, losing just under 70% of its value.
Among investors and cryptocurrency aficionados, Ethereum stands out as the most well-known altcoin because it is more than just another cryptocurrency. And despite a difficult first half of the year, experts believe that by 2022 it will be back above $3,000.
According to data from Coingecko, ETH was trading at $1,194 at the time of writing, a decrease of 2.2% over the past week.
Bitcoin (BTC) – Market Cap: $323 Billion
Even if it did better than some of its lesser peers, the most valuable and largest cryptocurrency in the world was not able to avoid the market crash of 2022.
As Bitcoin’s popularity has grown, so has its value. In May 2016, one Bitcoin cost approximately $500. As of December 20, 2022, one BTC was valued at approximately $16,795. That is an increase of nearly 3,260%.
Bitcoin is down 76% from its peak of $68,787 in November 2021. According to CoinMarketCap, the current price of Bitcoin is $16,523, a decrease of roughly 2.0% over the past week.
Tether (USDT) – Market Cap: $66 Billion
Tether (USDT) is a stablecoin, meaning that it is backed by fiat currencies such as U.S. dollars and the Euro and theoretically maintains a value equal to one of those denominations.
The algorithm-based projection website Wallet Investor predicted, as of 1 December 2022, that the USDT price will remain mainly tied to the US dollar during the next half decade.
Theoretically, Tether’s value should be more stable than other cryptocurrencies, and investors who anticipate the severe volatility of other coins appreciate it.
Crypto total market cap at $755 billion on the daily chart | Chart: TradingView.com
Dogecoin (DOGE) – Market Cap: $9.8 Billion
Beginning in the second quarter, the original “meme” coin joined the rest of the cryptocurrency market in a major sell-off. In 2022, Dogecoin performed better than most other tokens.
DOGE is the third-best performer in the top 10, with a decline of just over 50% this year, second only to XRP, which experienced a decline of 54%.
The joke currency has outperformed most others in large part because of Elon Musk’s deal to acquire Twitter, with advocates of the coin thinking this acquisition could improve the price of DOGE, which is now trading at $0.0697, down 10% in the last seven days.
Cardano (ADA) – Market Cap: $9 Billion
The Cardano ADA token has shown modest growth compared to other major cryptocurrencies. In 2017, ADA cost $0.02 per coin. As of December 20, 2022, it cost $0.26. This is a 1,188% growth.
Some analysts project that the value of ADA will climb by around 256% between the end of 2022 and the end of 2025. Then, between 2025 and 2030, the cryptocurrency is anticipated to expand by an additional 206%.
The true value that the blockchain provides to its users will increase as its speed and efficiency improve, and as a result, the value of ADA should increase as well.
Featured image: FXVNPRo