There were significant upheavals in the current cryptocurrency landscape due to macroeconomic events, such as the tariff war, which made the landscape more volatile. Only a select few tokens, such as BTC and XRP, managed to break the cycle and survive during one of the worst declines in the history of cryptocurrency.
The scale of the decline was huge, and many people lost their life savings in a flash. According to reports published by popular media, the top tokens declined by 20% in the year. However, analysts noticed a pattern. Here are two types of tokens that were affected by the dip.
In this article, we will analyze the types of crypto tokens that suffered the worst losses.
Layer 1 Blockchains
Layer 1 Blockchain networks, such as AVAX, SUI, ADA, SOL, and ETH, took some of the worst hits of all time. Although the blockchain suffered significant losses, the total market cap of these tokens is nearly $9 billion, and they remain among the top tokens in the world.
Then again, the fear and greed ratio of these tokens is bordering on fear. As a result, many investors will likely give these tokens a wide berth. ETH has reportedly taken the worst hits of all time. The token is down by 46%.
Meme Coins
The second form of tokens that have taken a hit is the meme coins. Meme coins are performing worse than Layer 1 blockchains. This is primarily due to the mechanics of the token. Firstly, meme coins draw their power and profitability from internet popularity. The popular a meme is, the higher it will go.
Secondly, meme coins offer no real functionality to the mix. Apart from their popularity, these tokens offer no significant innovation. Hence, making them solely dependent on market sentiment. If a meme coin loses popularity, its value will also decline. As a result, every meme coin would eventually peak and then become valueless.
Some of the popular meme coins that saw some major upheavals include the DOGE, SHIB, and PEPE. Some of these tokens have dropped by 53% in the last two months. Therefore, this indicates the market’s volatility.
