According to CoinMarketCap.com, the total value of over 21,600 digital currencies fell below the $1 trillion mark after peaking at around $3 trillion in the second week of November 2021. can argue that this can be blamed on a slew of digital currency projects that have failed to live up to expectations.
Despite the fact that cryptocurrencies are still in their infancy and are constantly evolving, some projects and related coins are definitely bad news. Here is a list of three popular cryptocurrencies you should avoid in November.
ApeCoin is a cryptocurrency created by Yuga Labs. This same company also brought us the NFTs Bored Ape Yacht Club and its spinoff Mutant Apes. The DAO ApeCoin manages this cryptocurrency.
Apecoin took the cryptocurrency market by storm when it launched. This ERC-20 token gives holders a special place within the APE ecosystem. It is an ecosystem governance token that allows ApeCoin holders to participate in the ApeCoin DAO. Users can access games, merchandise, events, and services using this token.
ApeCoin has lost nearly 80% of its value from its all-time high. The NFT market has run out of steam, and until ApeCoin demonstrates tangible value and utility, it’s not worth buying.
Axie Infinity (AXS)
AXS is an Ethereum token that powers Axie Infinity, a blockchain-based game where players fight, collect, and build a digital empire for their pets. AXS holders can earn prizes by staking their tokens, playing the game, and voting in critical governance decisions.
Axie Infinity sets itself apart by allowing users to own their Axies using non-fungible tokens (NFTs). For decades, PC and console game developers have retained ownership of all in-game inventions. Blockchain-based games promised to revolutionize all of that by giving gamers ownership of their creations and the ability to monetize them.
However, according to TokenTerminal.com, Axie Infinity only generated $1.6 million in protocol dApp revenue in the past 180 days, through November 2, 2022. Axie Infinity’s revenue grew from $126, $5 million in January 2022 to $3.2 million in June 2022, according to Be[In]CryptoResearch.
Additionally, interest in NFTs as a tradable tool or store of wealth has all but disappeared. Data from Bloomberg shows that the monthly trading volume of NFTs increased from $17.2 billion in January 2022 to $466.9 million in September 2022. For those following developments, it looks is a 97% drop. And a big setback for a game-focused company based on NFT character ownership and NFT marketplace transactions.
Shiba Inu ($SHIB)
Shiba Inu is famous for delivering what may be the biggest annual increase in an investable asset in history. SHIB holders saw gains of over 121,000,000% on October 27, 2021, from a starting value of $0.000000000073 per SHIB coin on January 1, 2021. Shiba Inu finally ended the year 2021 with a gain of around 46,000,000% after a fall. Digital currency has demonstrated how effective Fear of Missing Out (FOMO) investing can be in the crypto industry.
However, Shiba Inu lacks the competitive advantages and distinction to stand out among over 21,600 cryptocurrency projects. Shiba Inu is basically an ERC-20 token on the Ethereum platform. Although Ethereum is a popular choice for dApp developers, its popularity has resulted in somewhat slow processing times and high transaction costs.
SHIB is also not a popular payment currency. Despite the Twitter buzz, the number of Shiba Inu merchants on Cryptwerk has remained stable this year (659, as of November 2022).
This is most likely due to the fact that SHIB tokens have lost up to 91% of their value in the last year and companies are reluctant to accept such high volatility.
Although the creators of Shiba Inu are trying to develop blockchain-based games, the popularity of NFTs and blockchain-based games seems to have peaked. The hype that propelled SHIB to significant strides in 2021 simply cannot be replicated.
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