Since making a breakthrough in the financial market, the crypto sector has increased in value no thanks to the tokens. Over the last few years, Bitcoin, coupled with some other digital assets, has held it down for the sector. We have seen massive price rises with slight declines posted in this same time frame. 2020 was a poster year for the digital asset market as it posted massive gains to end the year. However, it is not every day that one gets to see these tokens perform well. In some cases, the digital asset performs badly due to several factors. This article will be looking at the top 5 worst performing crypto for the week.
What are cryptocurrencies?
Cryptocurrencies can briefly be described as digital currencies built or developed on a blockchain. Holders of these assets can carry out various activities with them without any intervention from financial institutions. One of the most integral tenets of cryptocurrencies is that any financial body or the government cannot control them. This is because they are developed using a decentralized model. Although cryptocurrencies are now being used for purchases, most traders still see them as an investment tool.
Factors that affect crypto price movement
Like other tools in the financial sector, cryptocurrencies are not stable in value. This is because their value fluctuates depending on some integral factors in the market. Using Bitcoin and Ethereum as an example, below are some of the factors that affect crypto price;
Demand and Supply
One of the most integral factors in any financial tool is demand and supply. In digital assets, the impact is immediate. This means that the demand and supply degree shows how well an asset will perform in the market. For instance, there is a massive amount of demand for Bitcoin in the market, the price would be on the high side. In the same vein, if there is a massive supply of Bitcoin without demand, the token’s value will decline drastically.
Crypto Exchange Listing
The crypto sector is very wide, with many tokens being traded every day. Crypto exchanges act as the middlemen to help traders facilitate their trades faster. By so doing, they list the tokens that users can trade on their platforms. This affects the movement of tokens because traders are only open to purchasing tokens that are listed and doing well. However, the ones that aren’t listed would experience more dip in value.
Use case of digital assets has become one of the integral aspects for purchasing an asset today. Some years back, people just wanted to get their hands on the next available assets. In this present day, traders prefer to purchase an asset that aims to solve real-world issues.
Token supply is also another determinant of the growth of a token. The token supply is the total number of tokens that will ever be created. Notably, tokens with very large or infinite supply rarely grow very big in price. Meanwhile, tokens that possess small or a fixed supply grow as large as possible. A typical example is Bitcoin which sells at $41,495 with a fixed supply of 21 million BTC.
Top 5 Worst Performing Tokens For The Week
The crypto market has been dealing with volatility which has caused most of the tokens to dip in price. With this, over the last few weeks, almost all the tokens have been posting losses, with some running into double digits. Although there was a little bit of relief for traders in the market this few weeks, some tokens still performed poorly. Below is a comprehensive list of the top 5 tokens that performed poorly for the week;
#1 Convex Finance (-4.74%)
Convex Finance is leading the pack with a performance of -4.74% over the last one week. Presently, the token is trading at $25.83, seeing a loss of 10.57% in the last 24 hours. The token ranks on #76 on CoinMarketCap with a market cap of $1,266,021,352. Convex Finance also has a 24-hour trade volume of $14,616,125.
#2 Klaytn (-3.51%)
Klaytn takes the second spot with a performance of -3.51% in the last week. Presently, klaytn is trading at $1.1, with a 24-hour loss of 1.89%. The token is ranked at #45 on CoinMarketCap, with its market cap at $3,025,438,901. Klaytn also has a 24-hour trade volume of $33,000,175.
#3 Loopring (-3.19%)
Taking up the third spot is Loopring, with a performance of -3.19% over the last seven days. Presently, Loopring is trading at $1.03 with a gain of 3.85% in the last 24 hours. Loopring ranks on #70 ok CoinMarketCap with a trading volume of $384,598,180 in the last 24 hours. The token also boasts a market cap of $1,373,498,735.
#4 Yearn.Finance (-1.85%)
Yearn.Finance performed woefully over the last seven days to post a return of -1.85% and take up the fourth spot. Presently, the token is down by 5.71% in the last 24 hours while selling at $24,282. It ranks at #91 on CoinMarketCap with a market cap of $889,653,555 and a 24 hour trade volume of $138,882,198.
#5 Fantom (-1.17%)
Fantom takes up the last spot on this list with a performance of -1.17% in the past week. Presently, the token is not faring any better by its performance of -2.10% in the last 24 hours and currently sells at $2.08. It ranks at #31 on CoinMarketCap with a market cap of $5,298,317,523. Fantom also boasts a 24-hour trading volume of $585,532,169.
The digital asset sector provides traders with one of the surest ways to make profits. This can be achieved either through trading in the short term or long term. However, traders need to perfect their strategy for trading if they intend to make it big in the crypto market. Another piece of advice that can never be over-emphasized is doing research. However, there is a chance of being blindsided in the case of volatility. But research would point you to the right tokens to invest in. Finally, portfolio diversification is also advised in case of loss of one or more tokens in your wallet.
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