Worst performing cryptocurrency of 2024: which coins tanked the most
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Despite Bitcoin and Ethereum’s rise, some coins are falling behind. Explore the darker side of the crypto world as we reveal the biggest losers of 2024.
Since the start of this year, the crypto market has witnessed a significant uptick in the total market cap, reaching $2.5 trillion as of Mar. 6, a level not seen since late 2021.
Bitcoin (BTC) has surpassed its all-time high set in Nov. 2021, reaching 69,045 on Mar. 5. However, it has since experienced a slight correction and is currently trading around $66,000.
Similarly, Ethereum (ETH) has displayed a strong trajectory, with a year-to-date (YTD) growth of over 58%, trading at approximately $3,780 as of Mar. 6.
The recent introduction of spot Bitcoin exchange-traded funds (ETFs) has played a major role in driving this growth.
Since their launch on Jan. 11, these ETFs have collectively garnered a market cap of almost $50 billion. Notably, Grayscale’s Bitcoin Trust (GBTC) leads the pack with nearly $38 billion in market cap.
Despite the overall bullish sentiment in the market, some altcoins have struggled and experienced significant declines since the beginning of the year.
Let’s analyze which altcoins have suffered the most significant losses in 2024 and identify the factors contributing to their downturn despite favorable market conditions.
Top 4 losers in crypto this year
Monereo (XMR)
Monero (XMR) has experienced a bearish price action in 2024, trading at $146 as of Mar. 6 with a year-to-date (YTD) decline of over 12%.
This decline is primarily attributed to an announcement by crypto exchange Binance on Feb. 6, stating its decision to delist Monero due to the coin no longer meeting the platform’s standards.
As a result, Monero witnessed a sharp 30% slump and plummeted to a 20-month low of $114.26, the lowest since June 2022.
Monero is a privacy-focused coin known for its emphasis on user anonymity and transaction privacy. It utilizes advanced cryptographic techniques such as ring signatures and stealth addresses to obfuscate transaction details, making it virtually impossible to trace sender, recipient, and transaction amounts.
Concerns over potential illicit activities and regulatory compliance have led exchanges to reassess their support for such coins, resulting in Monero’s decline on major platforms like Binance.
Despite its innovative privacy features, Monero’s future trajectory could be influenced by its ability to address regulatory concerns and maintain its appeal to users seeking privacy-centric transactions.
Starknet (STRK)
Starknet (STRK) token, launched on Feb. 21, has seen a decline since its launch, trading at $2.47 as of Mar. 6.
This drop in value occurred because STRK tokens lost half of their value shortly after becoming available for trading for the first time, primarily due to issues surrounding its launch event.
STRK tokens were claimed by more than 100,000 wallets. However, this distribution was met with skepticism, particularly concerning the scheduled unlocking of tokens over a 31-month period starting in Apr.
Although the event was documented in technical papers, the initial occurrence in Nov. 2022, with a subsequent vesting period extended to April 2024, faced criticism.
Some argued that this timeline discrepancy may favor insiders over the broader community, raising questions about Starknet’s commitment to transparency and fair distribution practices.
Starknet is an Ethereum rollup platform designed to facilitate scalable applications through the use of zero-knowledge proof technology. This technology ensures data integrity without compromising privacy.
While the current sentiment around STRK token is bearish amid these factors, its future trajectory will hinge upon its ecosystem growth and subsequent token release.
Thorchain (RUNE)
THORChain’s native token, RUNE, priced at $5.2 as of Mar. 6, reflects a decline of over 14% in the last 90 days, according to data.
In 2023, RUNE experienced a notable upturn, reaching $7.27 on Dec. 2, although it closed the year at $5.16. Despite this drop, THORChain managed to achieve a remarkable 60% gain throughout 2023.
However, the performance of RUNE in 2024 has been less encouraging. On Feb. 2, 2024, THORChain saw a decline to approximately $4.55.
While there has been some recovery since then, the token has struggled to capitalize on the bullish sentiments prevailing in the current market.
Founded in 2019 by a group of anonymous developers, THORChain operates as a cross-chain decentralized liquidity protocol, enabling users to create liquidity pools for decentralized exchanges (DEXs).
This functionality allows for the listing of tokens on DEX that are not native to the platform’s blockchain while enhancing the accessibility of a diverse range of coins and tokens on DEXs.
Ripple (XRP)
Ripple (XRP), trading at $0.6 as of Mar. 6, has struggled to gain momentum in 2024, with a modest 3% increase since the beginning of the year.
This performance stands in stark contrast to the significant rallies observed in other coins, ranging between 50% and 700%, amid bullish sentiments in the market.
The fate of XRP’s price remains intricately linked to the ongoing legal battle against the U.S. Securities and Exchange Commission (SEC).
In July 2023, XRP secured a partial victory when a U.S. District Judge ruled that the sale of Ripple’s XRP tokens on exchanges and through algorithms did not constitute investment contracts.
However, the institutional sale of the tokens was found to violate federal securities laws. Despite this initial ruling, the final outcome of the case is still pending, with a resolution expected by the end of April.
XRP, often touted for its utility in cross-border payments and financial transactions, has faced significant regulatory scrutiny due to its association with Ripple Labs. The outcome of the legal proceedings against Ripple will likely have a profound impact on XRP’s future trajectory.
The road ahead
As Bitcoin hits record highs and spot BTC ETFs make their debut, the crypto landscape is changing fast. However, amidst the excitement, it’s crucial to be cautious.
It’s important to recognize that the market can be unpredictable. While some altcoins are soaring, others are facing steep declines.
To minimize risks, consider diversifying your investments across different assets. Setting clear investment goals and using strategies like stop-loss orders can also help manage risks effectively.
In the end, while the crypto market offers great potential, it’s wise to proceed carefully. Remember, only invest what you can afford to lose, and always approach investment decisions with diligence.
FAQs
Why did so many cryptocurrencies lose value in 2023?
Cryptocurrencies can lose value due to various factors such as regulatory challenges, market sentiment shifts, or specific issues affecting a project. In 2024, prominent reasons include regulatory decisions leading to delisting from exchanges (e.g., Monero from Binance), skepticism about token distribution practices (e.g., Starknet), and unresolved legal battles (e.g., Ripple with the SEC). These factors can undermine investor confidence and lead to price declines despite a generally bullish market trend.
What are the biggest crypto losers of all time?
The biggest crypto losers of all time often involve projects that faced regulatory actions, significant security breaches, or failed to deliver on their promises. Examples include Bitconnect, which was exposed as a Ponzi scheme; Terra (LUNA), which suffered a catastrophic collapse due to its algorithmic stablecoin depegging; FTX (FTX), and several initial coin offerings (ICOs) that failed or turned out to be scams, resulting in total or near-total losses for investors.
