According to CoinMarketCap.com, the total value of more than 21,600 digital currencies has dropped below $1 trillion since peaking at around $3 trillion in the second week of November 2021. Arguably, it can be blamed on a slew of digital currency projects that have failed to live up to expectations.
Despite the fact that cryptocurrencies are still in their infancy and are constantly evolving, some projects and tethered coins are clearly bad news. Here’s a list of three popular cryptocurrencies that you should avoid in November.
ApeCoin is a cryptocurrency created by Yuga Labs. The same company also brought us Bored Ape Yacht Club NFTs and its spinoff Mutant Apes. ApeCoin DAO manages this cryptocurrency.
Apecoin took the crypto market by storm when it was launched. This ERC-20 token gives holders a special place within the APE ecosystem. It is an ecosystem governance token that allows ApeCoin holders to participate in the ApeCoin DAO. Users can access games, merchandise, events, and services using this token.
$APE has lost nearly 80% of its value from its all-time high. NFT Market has lost steam, and until ApeCoin demonstrates tangible value and utility, it’s not worth buying.
Also Read: 90% of Ethereum (ETH) Dumped from FTX Main Wallet In Just Two Days
Axie Infinity (AXS)
AXS is an Ethereum token that powers Axie Infinity, a blockchain-based game in which players combat, gather, and build a digital empire for their pets. AXS holders can earn prizes for staking their tokens, playing the game, and voting in critical governance decisions.
Axie Infinity distinguishes itself by enabling users to own their Axies using non-fungible tokens (NFTs). For decades, developers of personal computer and console games retained ownership of all in-game inventions. Blockchain-based gaming promised to revolutionise all of that by giving players ownership of their creations and the ability to monetize them.
However, according to TokenTerminal.com, Axie Infinity has only generated $1.6 million in protocol dApp income in the last 180 days, through Nov. 2, 2022. Axie Infinity’s revenue fell from $126.5 million in January 2022 to $3.2 million by June 2022, according to Be[In]Crypto Research.
On top of this, interest in NFTs as a tradeable tool or store of wealth has virtually vanished. Bloomberg data show that monthly NFT trading volume has fallen from $17.2 billion in January 2022 to $466.9 million in September 2022. For those keeping track, that’s a 97% drop. And a big setback for a game-focused firm based on NFT-character ownership and NFT marketplace transactions.
Shiba Inu ($SHIB)
Shiba Inu is famous for delivering what may be the highest single-year increase for an investable asset in history. SHIB holders saw gains of more than 121,000,000% by Oct. 27, 2021, from a starting value of $0.000000000073 per SHIB coin on Jan. 1, 2021. Shiba Inu finally concluded 2021 with a gain of roughly 46,000,000% following a retreat. If anything, digital currency has demonstrated how effective fear-of-missing-out (FOMO) investment can be in the crypto industry.
However, Shiba Inu lacks the competitive advantages and distinction required to stand out among more than 21,600 cryptocurrency projects (and counting). Shiba Inu is fundamentally an ERC-20 token on the Ethereum platform. Though Ethereum is a popular choice for dApp developers, its popularity has resulted in somewhat slow processing times and high transaction costs.
SHIB is also not a popular payment currency. Despite the hype it generates on Twitter, Shiba Inu’s merchant count on Cryptwerk has remained stable this year (659, as of November 2022).
This is most likely due to SHIB tokens losing up to 91% of their value in the last year and businesses being hesitant to accept such high volatility.
Although Shiba Inu’s creators are trying to develop blockchain-based games, the popularity of NFTs and blockchain-based gaming appears to have peaked. The hype that propelled SHIB to significant advances in 2021 simply cannot be replicated.
Also Read: Apecoin Price Attracts 20% Rally If It Sustains This Breakout
The post 3 Cryptocurrencies You Should Avoid in November 2022 appeared first on CoinGape.
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