terra: Why only blame Terra! These crypto tokens have tumbled more than 90% from their peaks!

Synopsis

These are truly testing times for crypto investors as global concerns over inflation, increasing interest rates and a strengthening dollar have impacted the altcoin market,” he said.Not only them, other major altcoins have lost over 90 per cent of their value from their respective peaks. Solana, Polkadot, Avalanche, Axie Infinity and Polygon are some of the key inclusions in this wealth eroders’ list.

Cryptocurrency investment is the latest fad among Gen-Z investors who have a super-solid risk appetite and seek high returns. Following the recent market correction, investors are looking for options that can reward them well. While the professional guidance for cryptocurrencies is limited, here are some experts from the crypto world sharing their top bets from the space.Crypto market is suffering the worst selloff in 2022 as top tokens have taken a major hit, with many dropping to multi-month or multi-year lows.

It is not only Terra that wiped off $40 billion from investors kitty, as its native token Luna plunged to some fractional cents after from $118 a few weeks ago.

Other altcoins have also plunged upto 90-95 per cent from their peaks.
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It includes Elon Musk backed Dogecoin, the largest memetoken, which plunged to $0.055 levels on Monday from its peak of $0.6848, scaled in May 2021.

Its arch rival and fellow memetoken Shiba Inu has also dwindled to $0.000007673 from $0.00008. Both the tokens have to rise more than 1,000 per cent to scale their previous glory.

Vikram Subburaj, CEO, Giottus Crypto Platform said that a number of tokens have plunged about 90 per cent from their peaks and the carnage in the crypto markets dragged the total market capitalisation below the $1 trillion mark.

These are truly testing times for crypto investors as global concerns over inflation, increasing interest rates and a strengthening dollar have impacted the altcoin market,” he said.

Not only them, other major altcoins have lost over 90 per cent of their value from their respective peaks. Solana, Polkadot, Avalanche, Axie Infinity and Polygon are some of the key inclusions in this wealth eroders’ list.

Analysts point out the rate hikes, rising inflation, recession fear, Terra-Luna fiasco, Russia-Ukraine war crisis as the key reasons which dented the crypto market sentiments. Crypto, a highly risky asset, is proactively sold by institutions in volatile times.

Decoding the reason for this mayhem, Edul Patel Co-Founder and CEO, Mudrex said that the crypto market has been on a bearish consolidation since early April and has started to fall since mid-May due to several macroeconomic factors.

The market has not yet recovered from the recent crash as market participants are moving away from the riskier assets class, he added. “Memecoins were the most impacted cryptos during the crash.”

Market might take a little more time to recover and get back, said the analysts. Investors are also hesitant to return to the market with increasing fear of inflation and recession, they add.

“Since the market is down, it can be a great opportunity for investors looking to stock up on cryptos to DCA,” advised Patel. “Investors with a less-risk appetite should observe the market movements closely and not jump into impulsive buying.”

“Investors are advised to go Bitcoin heavy to navigate the current bear market,” Subburaj suggested as he sees it akin to the go to crypto asset. “BTC has dropped over 80 per cent in previous cycles and subsequently registered new highs every time.”

“With other altcoins, the risk of the project closing down always remains,” he added. “As long as their portfolios grow in value in terms of Bitcoins, they can be assured that their portfolio will grow in currency terms over time.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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Updated: 06/13/2022 — 18:00