2022 was a difficult year for equity investors, but it was downright terrible for those experimenting with cryptos. Bitcoin (BTC-USD), the most widely traded crypto and a barometer for the sector, was down roughly 65% for the year, its worst year since 2018.
Looking ahead to 2023, there are some cryptocurrencies to sell before they fall even worse.
As with the stock market, higher interest rates were generally blamed for the turnaround in cryptocurrencies after a stellar year in 2021.
A wave of bankruptcies shocked the industry, including crypto hedge fund Three Arrows Capital, crypto lender BlockFi, and crypto exchange FTX.
December was the lowest level of bitcoin exchange trade volumes since December 2020. Furthermore, the Federal Reserve has indicated that it will continue to raise interest rates. Unless the risk-on trade returns, 2023 will most certainly be another difficult year for bitcoin investors.
As with any asset class, certain altcoins are more likely to outperform others… and others are riskier. With that in mind, and possible volatility on the horizon, here are three cryptocurrencies to sell today.
The Shiba Inu (SHIB-USD)
Shiba Inu, a popular meme token, is first on the list of cryptos to sell (SHIB-USD). It was previously one of the most fiercely traded assets in the cryptocurrency market, with traders purchasing in large quantities.
As a result, SHIB outperformed the market in 2021, with some lucky speculators realizing multi-million-percentage-point returns. Then the bottom dropped out. SHIB lost more than three-quarters of its value in 2022 alone.
It’s also down more than 90% from its all-time high, which was set in October 2021.
Despite this dramatic drop and the fact that Shiba Inu offers little utility outside of its community and early-stage projects, it still has a market cap of more than $4.4 billion, making it the 16th largest cryptocurrency. In other words, as its popularity fades and investors prioritize buying cryptos with real-world utility — if they buy them at all — this meme coin will fall much further.
ApeCoin, a renowned non-fungible-token-related cryptocurrency, is next on our list of cryptos to sell. ApeCoin, which was founded with the assistance of the Bored Ape Yacht Club (BAYC) team, which is behind popular NFT compilations such as the Bored Apes, rocketed from a token launch price of $1 to nearly $40 before immediately reversing. It is currently selling for about $4.
In 2023, the token, which is still less than a year old, is up more than 10% and some investors are still optimistic about its medium-term prospects.
The project’s staking debut has piqued investors’ curiosity, as they may now stake their cash in four pools: the BAYC pool, the ApeCoin pool, the MAYC pool, and the Paired pool. As a result, ApeCoin owners will be able to receive passive revenue from it.
Outside of staking, this token has minimal utility. While some have speculated that APE may be the major crpyto used in different future metaverse projects, the economics of this project remain unknown.
Furthermore, as NFT volumes and prices fell drastically in 2022, interest in this NFT-focused initiative waned.
Investors might be better off selling than buying ApeCoin at these levels if there are no strong and compelling use cases.
The Sandbox (SAND-USD)
The final cryptocurrency to be sold has been one of the worst performers in a bad sector: The Sandbox. This cryptocurrency project is a market leader in blockchain-based metaverse gaming, which offered a catalyst in 2021. The token lost 93.5% of its value by 2022.
While the metaverse is an interesting industry to monitor, it’s difficult to argue that it’s a fast-growing one.
Despite The Sandbox’s initial popularity, DappRadar data shows a significant drop in user engagement. In February 2022, the number of unique active wallets engaging with this crypto reached roughly 4,300 per day. DappRadar recently reported UAWs of less than 300 per day.
Reduced participation in The Sandbox reduces demand for SAND, which is used to transact in this metaverse game. As a result, investors should think twice before investing and consider selling instead.
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