The year 2021 was one of the most tumultuous years in cryptocurrency’s history. People all across the world have observed a variety of dramatic events, ranging from Bitcoin being approved as legal tender in El Salvador to the entire prohibition on cryptocurrency transactions in China to the flash crash of the cryptocurrency market in May 2021. Needless to say, we’ve been paying close attention to the influence that these cryptocurrencies have had on the globe over the past year. Cryptocurrency has made its way into the mainstream and has even emerged as a viable option for virtual gifting, with some platforms even enabling users to transfer cryptocurrency as presents to one another.
Cryptocurrencies, by their very nature, are very volatile and unpredictable. Sometimes all it takes is a single tweet for cryptocurrency values to rise or fall dramatically, for example, one tweet by Elon Musk helped shoot up Dogecoin’s value. Before making any judgments, it is critical that you have a solid grasp of the market as well as the worth of the various currencies. Following that, here is a list of some of the most volatile cryptocurrencies that have had a tough year and continue to see some turbulence in the market value.
1. Bitcoin and Ethereum: Despite having a bigger market presence, the bitcoin price and ETH swing (surges and falls) more frequently than other cryptos. Because they are the oldest and most often traded, their massive scale of activities regularly influences and sways the global crypto market. Their drops and gains are extreme, making them one of the most volatile cryptocurrencies. These were among the most severely hit cryptos during the market’s flash crash in May 2021 and bounced back just as quickly. Despite that, Bitcoin hasn’t been able to gain the same position in 2022 that it had reached in November 2021. The value of one BTC token (BTC to INR) is approximately $43,262, which is still less than earlier.
2. Ripple: Ripple was intended to give a cheaper and faster payment option for international transactions, but it is regarded as very volatile due to frequent price fluctuations. Ripple increased by 170 percent in 2020, but mounting fears about the SEC litigation against the network stopped the network from reaching remarkable heights in 2021. Despite the fact that the ongoing concerns were effectively resolved, it is still deemed dangerous in 2022.
3. Shiba Inu: Shiba Inu is an Ethereum-based cryptocurrency. The Shiba Inu coin began as a meme currency established as a joke or parody rather than based on genuine utilities, with over 500,000 community members, to “make something out of nothing.” It gained a sizable fan base throughout the years. Shiba Inu was released in the middle of 2020 and has a very cheap price, which fluctuates even lower due to the number of tweets made by Elon Musk. Due to the turbulent market, its price has not changed even in 2022.
4. Matic/Polygon: Matic is a Polygon Network altcoin. The user experience, transaction fees, and total computation time were all affected as a result of the excessive network load on the ETH blockchain. This resulted in the creation of Matic, which is likewise based on the ETH blockchain architecture. Because of its tiny basis, it had a difficult year in 2021, with an all-time low of $0.003012. The Matic coin is now worth about $2.1186.
5. Solana: SOL’s price increase has propelled it into the top five cryptos in the worldwide market. As the cryptocurrency had a successful year in 2021, its volatility index hit a stunning 7183 percent. Since 2020, it has increased by more than 12000 percent. Its record was set in September 2021 following many variations. SOL offers various benefits, including minimal transaction costs, which attract the majority of its investors.
6. Dogecoin: Dogecoin was created in 2013 when a video of a Shiba Inu dog went viral. Within a year, its price volatility resulted in a plot twist of 9530 percent. The coin’s rapid rise can be attributed to Elon Musk’s tweets as well as its inclusion in Coinbase. IT is extremely volatile since its worth is determined by its influencers and investors, not to mention Elon Musk’s tweets. It has also been accepted for fan tokens by various sports clubs, which has increased its market attractiveness.
7. Dash: In 2021, Dash was popular among investors as a bitcoin alternative. It aimed to improve financial transactions and ensure that banking services reached the poor and unbanked. DASH’s volatility index in 2021 was 1251 percent. The coin’s value increased from $66 in January to $440 in May 2021. Following this rise, its prices plummeted to US$120 and hovered around the USD 160 range.
Because the crypto realm is fluid and dynamic, the currencies are very volatile and risky. Before making any type of financial choice involving investments, thorough information and awareness are essential. It is frequently advisable to seek the opinion of professionals and then act on their recommendations.