The crypto market saw one of its worse crashes in 2022 this week. The market has recovered slightly from these lows, with Bitcoin regaining $30,000 over the last few days. But why was this crash so devastating? Here are some reasons:
The crash happened after months of negative sentiment in crypto.
Economic and geopolitical conditions in the world are not investor friendly right now.
Crypto was in general due for a correction after a superb performance in 2021.
Despite this, there were a few coins in the market that crashed more than others. While Terra (LUNA) led the way in terms of decline, the following 3 coins were also hit hard.
Avalanche (AVAX) had earlier seen some good upward gains and even threatened to stake its claim among 10 of the most valuable crypto assets. But the crash this week took a huge toll on the altcoin.
Data Source: Tradingview
Compared to 7 days ago, AVAX has lost over 45% of its value. Besides, even though the market has generally recovered, AVAX remains slower than most major coins. It seems investors are not buying it with the same veracity they used to.
PancakeSwap (CAKE) was also another coin that fell sharply during this week’s crash. However, it is important to note that before the crash, CAKE had in fact rallied significantly. The 45% drop we saw was largely part of a correction that most investors were already expecting. Either way, it was still a huge fall.
ThorChain (RUNE) is yet to fully recover from this week’s crash. The coin has in fact continued to report losses despite the overall recovery in the market. RUNE had lost nearly 50% of its value over the last seven days. Whether it will bounce back anytime soon remains to be seen. But at the moment, it seems buyer demand for RUNE is very low.