To say that 2022 has been a tough year for the cryptocurrency industry is possibly the understatement of the century. The year seemed to be an unending sea of red – but what were the top 10 crypto performers of 2022?
In this article, we’ll look back at what happened during the year, which tokens suffered, which cryptos fought back, and what 2023 may hold for the cryptocurrency space.
Catastrophic Losses
On January 1, 2022, the total market cap for the entire blockchain industry was some $2.24 trillion. This is a massive figure – although still some $750 billion short of its November 2021 all-time high. Bitcoin, with a price of just over $46,000, dominated the market with a 39.5% share. It was followed by Ethereum at 20%, BNB with 3.92%, and XRP with 1.78%. By comparison to today’s prices, these were good times.
The December market value stood at some $810 billion. Although Bitcoin dominance remained roughly the same (39.6%), the pullback from the highs of November 2021 has been dramatic. All coins in the top 10 crypto have experienced catastrophic losses, with Bitcoin (-62%), Ethereum (-65%), XRP (-55%), and DOGE (-49%) recording some of their worst figures to date.
However, compared to others, some of the most well-known names in crypto appear to have escaped off lightly. When you consider the losses incurred by Terra Classic (-100%), Solana -92%), Axie Infinity (-92%), and Fantom (-90%), you can begin to appreciate the magnitude of the drawdown.
Believe it or not, only two cryptocurrencies ended the year net positive – Trust Wallet Token (+199%) and GMX (+137%).
The Top 10 Crypto Prices
| Prices as of December 21, 2022 |
| Name Price Market Cap % YTD |
| 1. Bitcoin $16,854 $324 B -64.7% |
| 2. Ethereum $1,214 $148 B -67.8% |
| 3. Tether $1.00 $66 B -0.04% |
| 4. USDC $0.999 $44 B -0.01% |
| 5. BNB $248.60 $39 B -52.8% |
| 6. BUSD $1.00 $18 B -0.05% |
| 7. XRP $0.34 $17 B -59.7% |
| 8. DOGE $0.07 $9.7 B -57.7% |
| 9. ADA $0.25 $8.7 B -81.6% |
| 10. MATIC $0.79 $6.9 B -69.1% |
As you can see, 30% of the top 10 crypto are stablecoins – Tether, USDC, and BUSD – representing some $128 billion and accounting for just over 20% of the total value of the top 10. Clearly, stablecoins are big business and form an integral part of the crypto landscape moving forward.
Combination of Factors
So, what caused the massive sell-off from such a promising position? Like most things in life, it is often a combination of factors, not a single event that causes the most damage, and 2022 is no different. Exploit followed hack followed scandal as the crypto market reeled from one disaster to the next. The resulting exodus of investors caused token prices to collapse.
Let’s look at some of the most significant ones:
The world’s largest producer of mobile gaming – Sky Mavis – was hacked for some $615 million in March 2022. The result of an elaborate ‘security breach’ on their in-house Ronin Network, the Ethereum-based play-to-earn game, was targeted after lowering its security protocols in December 2020. Seemingly forgetting to restore defences, the company was attacked just months later.
Celsius, one of the largest Web3 lenders at the time, spectacularly failed in May 2022 when it essentially ran out of liquidity. Simply put, this was due to its promise of unrealistic returns for investors looking to provide liquidity via their DeFi application. While DeFi protocols have an established reputation, a combination of over-exuberant promises and bear-market conditions saw Celsius freeze customer accounts in early June. The resulting collapse of the firm saw some $4.7 billion worth of customer investment evaporate into thin air.
Founded in 2012 and the brainchild of Kyle Davis and Su Zhu, Three Arrows Capital (3AC) was a very successful blockchain-centred hedge fund. However, a combination of falling prices, a reluctance to pay back significant loans from its investors, and exposure to Celsius saw the hedge fund file for bankruptcy to the tune of $3.5 billion in early June 2022.
Finally, perhaps the largest earthquake the blockchain industry has ever witnessed occurred on November 11, 2022. The world’s second-largest crypto exchange, FTX, filed for bankruptcy after concerns were raised over the liquidity of sister company Alameda Research. After investigations, especially those of Binance and CoinDesk, it was revealed that Alameda had been using FTX customer deposits to trade in an effort to generate profit through DeFi protocols. The resulting outcry saw the value of FTX native token FTT collapse, leading to the firm freezing accounts and filing for liquidation “in excess of $7bn” soon after.
Top 10 Crypto Spotlight
As you might imagine, 2022 has been a year many in the decentralised world would prefer to forget. The fact that the 2021 highs meant the spotlight shone brightly on the industry makes the pain all the more poignant. However, for all the negative news coming out of the 12 months, industry developments continue at pace.
There is a universal acknowledgment of the need for comprehensive and cross-border regulation designed to attract the next level of institutional investment. Without clear definitions regarding cryptocurrency’s economic status, many large-scale investors will continue to view crypto as a high-risk niche environment. Furthermore, many believe the ongoing SEC vs Ripple case is crucial to industry development and that its results will set a precedent for any future classification. A decision is expected sometime in 2023.
The successful transition from Proof of Work to Proof of Stake has ended Ethereum’s exorbitant fees, luring returning programmers who left to seek opportunities elsewhere. The introduction of sharding is also expected to increase transaction speeds, further cementing Ethereum’s reputation as the go-to place for all things decentralised. With the second largest project value in the market, the continued use of Ethereum is integral to the development of distributed networks and the continuing rise of Web3.
Finally, the Federal Reserve, the lender of last resort, has indicated that 2023 may be the year it finally slows rate hikes, making borrowing attractive once more. Any slowing of interest rates always has a net positive effect on investments, including crypto. However, this may take a quarter or two to materialise. That said, any crypto investment now is expected to yield rewards in 2024 and beyond.
Returning to the top 10 crypto tokens, dominant Bitcoin is likely to lead the way as prices recover.
Whatever the future holds, anyone looking to invest in cryptocurrency, whether the top 10 crypto names or others, should conduct due diligence before making any final decisions. While no one can predict the future, having confidence in your investment decisions is priceless.
