Kryptocurrency markets experienced one of their worst crashes of 2022 this week. While prices have recovered somewhat since those lows—Bitcoin has reclaimed the $30,000 level over the past few days—the crash was particularly damaging. Several factors help explain why the downturn hit so hard:
- It followed months of negative sentiment across the crypto sector.
- Unfavorable macroeconomic and geopolitical conditions around the world have reduced investor appetite.
- After an exceptional 2021, the market was generally due for a correction.
Despite the broad sell-off, a few tokens suffered far larger losses than others. While Terra (LUNA) led the declines, the following three cryptocurrencies were also hit hard.
Avalanche (AVAX)
Avalanche (AVAX) had previously enjoyed strong gains and even threatened to rank among the top 10 most valuable crypto assets. This week’s crash, however, dealt a heavy blow to the altcoin.
Data source: TradingView
Compared with a week ago, AVAX has lost more than 45% of its value. And although the broader market has recovered, AVAX’s rebound has lagged behind most major coins. It appears investors are not buying AVAX at the levels they once were.
PancakeSwap (CAKE)
PancakeSwap (CAKE) was another token that plunged during this week’s crash. It’s important to note that CAKE had actually seen a notable recovery prior to the downturn. The roughly 45% decline observed was largely a correction many investors had anticipated, but it was still a significant drop.
THORChain (RUNE)
THORChain (RUNE) has not fully recovered following this week’s sell-off. The token has continued to report losses even as the broader market improved. RUNE has dropped nearly 50% over the past seven days. Whether it will rebound soon remains uncertain, but for now demand for RUNE appears to be quite weak.