The total value of digital currencies has dropped to $1 trillion, after previously being at a high point of $3 trillion. The decline can be blamed on many projects not succeeding in meeting expectations.
Cryptocurrencies are still new and evolving, which means that some projects might not be ideal right now. Here are three popular cryptocurrencies that you should avoid this month.
ApeCoin is a cryptocurrency created by Yuga Labs, the same company that also brought us Bored Ape Yacht Club NFTs and its spinoff Mutant Apes. This cryptocurrency is managed by ApeCoin DAO.
The ApeCoin ERC-20 token was a groundbreaking innovation when it first came out. Its holders have a unique position in the APE ecosystem, allowing them to participate in governance through the ApeCoin DAO. In addition, this versatile cryptocurrency can be used to access games, merchandise, events, and services.
ApeCoin has decreased in value by nearly 80% since its all-time high and doesn’t show any signs of recovery. The NFT Market is no longer booming, so unless ApeCoin can start to provide value or utility, it’s not worth investing in.
Axie Infinity (AXS)
AXS is an Ethereum token that allows users to combat, gather resources, and build a digital empire for their pets in Axie Infinity- a blockchain based game. Additionally, AXS holders can earn prizes by staking their tokens, playing the game, and voting in important governance decisions.
What makes Axie Infinity unique is that it allows users to own their Axies via non-fungible tokens (NFTs). In the past, developers of PC and console games always kept ownership of in-game items.However, blockchain gaming has emerged as a gamechanger by giving players control over their creations and finances.
However, according to TokenTerminal.com, Axie Infinity has only generated $1.6 protocol dApp income in the last half a year through November 2nd, 2022.Their revenue fell from their high in January of $126 million all the way down to $3 million by June according to Be[In]Crypto Research..
Furthermore, NFTs as a tradeable tool or store of wealth has decreased in popularity. Bloomberg data demonstrate that monthly NFT trading volume went down from $17.2 billion to $466.9 million Between January and September 2022 respectively; That is almost a 97% drop. This is quite the disappointment for an organization focused on games involving NFT-character ownership and transactions within anNFT marketplace
Shiba Inu ($SHIB)
By October 27th, 2021, Shiba Inu had increased by 121000000%, 460000000% of which was in the last year alone. This makes it one of, if not the most successful investable assets in history. Shiba Inu’s success is largely due to fear-of-missing-out (or FOMO) investment tactics employed within the cryptocurrency industry.
Shiba Inu, however, does not have the benefits and originality needed to be remembered among the 21,600+ cryptocurrency projects. Shiba Inu is a ERC-20 token on the Ethereum platform–a very common choice for dApp developers because of its widespread use. Although Ethereum is convenient for many people, it often has slow processing times and high transaction fees due to that same popularity.
Despite its social media presence, SHIB remains an unpopular payment currency. According to Cryptwerk, the number of merchants accepting Shiba Inu has remained steady this year (659 as of November 2022).
SHIB tokens have lost 91% of their value in the last year, so businesses are understandably weary of accepting them.
Even though the inventors of Shiba Inu are trying to create games using blockchain technology, it appears as if the interest in non-fungible tokens and gaming with blockchain has peaked. The excitement that drove SHIB’s success in 2021 cannot be reproduced.