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The Best Cryptocurrencies Of 2022 Were Neither Bitcoin Nor Ethereum

The year 2022 was undoubtedly one of the worst in the history of the crypto market.. The two main assets by market capitalization suffered sharp falls in the year, with Bitcoin and Ethereum devaluing 66% and 69%, respectively.

All the assets in the analysis had negative variations in the year, taking those that fell the least as the best assets.

According to an analysis by QR Capital, shared with Cointelegraph in Spanish, the highlight of the year was the LEO token, from the Bitfinex exchange, which rose sharply in February, after two people suspected of being responsible for the huge Bitfinex hack in 2016 were arrested. Shortly after the arrest of the suspects, the exchange announced that would use 80% of the recovered funds to buy back and burn LEO tokens, thus reducing the supply of the asset. The token even doubled in price during the month of February and since then has been slowly declining throughout the year, ending with a 10% change.

Then, another token from an exchange: OKB, from the Asian OIX. Tokens from exchanges that have a high trading volume typically do well, given the demand generated by clients who want discounts on the fees charged by the platforms.

In the case of OKX, QR points out that some additional factors played a role, starting with a rebranding that the group felt at the beginning of the year. For most of the year, the tokens traded in line with the crypto market as a whole, but in late 2022 they regained momentum with the collapse of the FTX/Alameda group. Following FTX Bankruptcy, OKX Has Reclaimed Its Place As Leading Liquidity Center For Crypto Derivatives And Options. Historically, OKX has always been the second largest exchange by option volume, behind only Deribit; now, it has returned to the top 3 in both volume and total open interest, along with Bybit and Binance.

QR points out that TRX, the native token of the Tron network, performed well throughout the year thanks to the efforts of its creator, Justin Sun, to encourage activity on the network through incentives on Defi platforms.. The JustLend platform has attracted a lot of resources due to the performance paid in stablecoin USDD, native to the network. In December, Tron network even surpassed Binance Smart Chainhistorically the second largest smart contract network in TVL, or full escrow.

Completing the top 5, we have Monero and Litecoin, two ancient coins that were among the worst performers in both 2020 and 2021, years of strong growth for the crypto market. Specific factors had a specific influence for both assets. In the case of Monero, the war in Ukraine increased the requirement for the secrecy of transactions with a high level of privacyfavoring the currency. In the case of Litecoin, the proximity of the next halving, scheduled for August 2023, began to exert upward pressure. on currency prices at the end of the year”, says the analysis.

Regarding the worst performances, the similarity between the cases is striking: all tokens native to alternative blockchains and that would be potential competitors of Ethereum. With the collapse of the Terra/Luna ecosystem in the middle of the year, the market began to punish these tokens, which have since been among the worst performers. By the end of the year, with the collapse of the entire ecosystem linked to FTX, the Solana network token was most blamed for having Alameda as one of the biggest investors in his early rounds and being constantly promoted by the CEO of FTX.

Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

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