The Crypto Economy's Decline Decimates 2 Trillion USD in 8 Months

The Crypto Economy's Decline Decimates 2 Trillion USD in 8 Months

The past eight months have witnessed a period of turbulence in the crypto market. Crypto assets have shed enormous value against fiat currencies like the U.S. dollar. Bitcoin has dipped 69% since the leading crypto asset’s all-time high on November 10, 2021, when the digital currency’s value peaked at 69K USD per unit. The crypto economy has marginally recovered as the market capitalization of all 13,413 tokens in existence is hovering below the 1 trillion USD level.

The USD Value of the Top Ten Crypto Assets has Fallen by 70 to 90%

The crypto-economy is now worth about 983.65 billion USD after it lost more than 2 trillion USD during the past eight months. Every major crypto asset in the top ten standings (except stablecoins) has shed well over 65% or more of its USD value.

Bitcoin (BTC) reached an all-time high of 69K USD. It has fallen 69% from the peak price level. 46.21% of BTC’s losses took place during the past 90 days. However, BTC’s market dominance remains above the 40% range at 41.352%.

The second-largest crypto asset in terms of market valuation, Ethereum (ETH), is down 75.46% from its peak level of eight months ago. ETH traded at 4,850 USD per unit on November 10, 2021. 60.11% of Ethereum losses were recorded during the last three months.

Over the last 12 months, ETH has shed 44.8% and its market capitalization of 142.40 billion USD represents 14.5% of the crypto economy. The highlight of 2022’s crypto-economy is that three stablecoin assets are now among the top ten contenders.

During this period of reckoning, the stablecoin terrausd (UST) was still trading for 0.99 USD to 1 USD per unit. The Binance-issued stablecoin BUSD was close to entering the top ten on May 6, 2022. Then UST de-pegged and the token plummeted to 0.00601 USD per unit on June 18, 2022.

Since then, BUSD managed to climb a few positions, and the stablecoin’s market cap is now ranked in the sixth position. Binance’s BNB token is ranked in the fifth position, above the BUSD this weekend.

BNB’s all-time high (ATH) was on May 10, 2021,  when it reached 686 USD per unit.  BNB is down 65.6% from the ATH. XRP’s ATH was four years ago and today it is 90% lower than the 3.40 USD per unit high it saw on January 7, 2018.

Bitcoin and Ethereum Control over 55% of the Crypto Market

Cardano’s (ADA) ATH was on September 2, 2021, when it reached 3.09 USD per coin. ADA is down by 84.7% from the ATH and 25.3% of the value was lost during the past 30 days.

Solana (SOL) reached an ATH four days before BTC’s and ETH’s peak price levels when it reached 259 USD on November 6, 2021. SOL is now down 85.6% from that price level. Similarly, Dogecoin (DOGE) is down 90.7% from the token’s peak price level.

Dogecoin’s ATH was recorded on May 8, 2021, when DOGE tapped 0.731 USD per unit. 15.1% of the meme coin’s value has been lost during the past month. Dogecoin’s market dominance today is 0.921%, while Solana’s (SOL) dominance is 1.301%.

Cardano’s market valuation equates to 1.619% of the crypto economy, and XRP is around 1.667%. BNB commands 3.934% of the crypto economy’s USD value.