Unprecedented demand for goods and services in the US market has pushed the prices to go off the roof. For the first time in nearly 40 years, inflation in the US breached the 7% mark. As a result, to put an end to the misery, the Fed has started tapering with plans to reduce asset purchases in 2022 by nearly $30 billion. As a consequence, even the crypto market had its worst crypto fall significantly in prices.

The repercussions due to this have been evident in other related markets like stocks and cryptos where we have been noticing long red candle formation in the past couple of weeks. With S & P index nosediving and cryptocurrencies gasping for breath, some of the tokens have outsmarted peers in terms of worst performance this week. So without an intention to alienate whosoever invested in these cryptos, let’s have a quick look at some of the worst-performing crypto this week. 

One Token did enter the crypto market with a promise initially to scale blockchains and provide an infrastructure for NFTs and DeFi to grow linearly. Despite the claim, the much-talked-about 4-shards that created hype among NFT projects in the midst of skyrocketing Ethereum gas fees failed to capitalize on the market sentiment. Investors' positive outlook had consolidated for Harmony’s one token much earlier despite revolutionary consensus mechanisms like EPOS or Effective Proof of Stake. 

The token has lost 30.2% of its value to feature on the list of worst-performing cryptos this week. On January 31 2022, the One token was trading at $0.1866. Fast forward to 17 days and we have seen no up movements at all.  Prices have dipped further with no signs of revival anytime soon.

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When a DeFi protocol automatically allows you to aggregate overall price movements and pick trades on your behalf, it is a relief that amateur or new investors would battle to try. Yearn.Finance entered the crypto realm with the same solution; however, things hadn’t been sunshine and rainbows for the protocol where the token prices have depreciated by almost 31.8% this past week. If you have bought YFI token as your preferred portfolio, it wasn’t a good week for you. But one can hold on to bright days ahead for sure. 

Matic recently raised $450 million from Sequoia Capital India to build Web 3.0 solutions. Despite providing additional support to Ethereum scaling in the midst of high gas costs, Matic’s performance remained abysmally under-recognized. The token has dropped by 36.1% which makes it the worst performing crypto even outpacing its peers like One Token and YFI included on the list. On January 1, Matic/Polygon was trading at around the $2.57 mark, however, within a month the token had depreciated to $1.79. 

Shiba Inu did ride on top of Elon Musk's antics where he continuously supported meme tokens. The outcome led to an unprecedented rally last year. However, 2022 hasn’t been quite promising for the token. In February, the token dipped to new lows by registering a 37.2% write-off on its value. At the moment, Shiba Inu is 65% down from its all-time high of 0.00005 registered on May 10, 2021

In 2021, the Avax token gained 2800% due to its capabilities of processing transactions at a low cost with super fast speed. However, 2022 hasn’t started on a good note for the token since it has already registered 38.2% value write-off at the time of writing making it the top loser of February 2022. However, there’s some respite due to a slight recovery picking up lately. 

All the above-mentioned tokens sank significantly in the past week. On the other hand, we can notice a very similar pattern, where prices fell towards a strong support area. Most tokens are currently around that specific important support. The coming days should determine the upcoming price-action of the entire cryptocurrency market.

Bitcoin broke below 40K, and Ether also did break below the important price of 3K. Will altcoins manage to come back stronger and break away from the Bitcoin correlation?

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When El Salvador legalized Bitcoin on September 7, 2021, most of the economies criticized their stance with the IMF compelling El Salvador to reverse the decision of adopting BTC as a legal tender or be prepared for the consequences in the near future. Fast forward to 2022, we do see other countries following in the footsteps of El Salvador like India recognizing crypto as an asset and taxing any trade-in cryptocurrencies at a flat 30% rate. And, Russia is on the cusp of tabling the crypto bill in the parliament which would make BTC a legal tender in the country. Such breakouts have again attracted Bitcoin whales and even long-term investors are again pumping up their hard-earned money to the crypto market, especially Bitcoin. 

As a result, after as many as 6 months of sluggishness, BTC which slipped 50% in value from the historical ATH of 69,000 to $33,000, has started to witness positive optimism building around the crypto. The MACD or Moving Average Convergence Divergence for the first time witnessed a cross-over of 50 DAY Moving Average  (MA) over the 200 Day MA. Hence, it could set the precedent for some good days ahead; but, the majority of alt-coins ended up as the worst crypto for investment despite BTC's much-anticipated breakout in the future. Apart from Ethereum, all other alt-coins failed to establish fresh signs of revival. For example, Cardano has dropped 19% after some positive actions lately.

Solana, on the other hand, recorded a sharp fall of 20%, Shiba and Doge witnessed no different fate by recording an unparalleled 35% to 50% downward spiral. But, there are a few cryptocurrencies that did lose considerable value within the last week making them worst crypto for investment in February which almost seems impossible to digest post their steady run all this while. In case you are not aware of them, read on to explore them now.

The LDO token witnessed momentum building from February 5; however, post-February 8, we did see the momentum waning and the token continuously dipping to new lows. After registering some good gains on February 8 at 7.30 AM  where the token was trading at 2.31, it has gradually taken a U-turn and fallen to a new low of $1.61 on February 11. In January, the token lost 35% of its value. Whereas, in February, the poor show continues with almost 50% value written off in a few days. 

Kadena was a top-performing cryptocurrency last year, however, the market for the crypto has fallen in the last few months post the fear of bear market in crypto. If you look at the charts, KDA token has recorded an average 13% downside in its price. The momentum has stalled after February 8 when the token was trading at $9.24. At the moment, prices have consolidated at the $8.35 level with a 12.5 % write-off in its value at the time of writing. Charts suggest we are at the best buy zone though to witness an upside in the future. 

WAXE token has witnessed no different fate where it has fallen after a good show last week. At the moment, the token has been trading at somewhere close to $358, which is 15% less than the highest point the token recorded on February 2. 

CVX token had a good rally building up from February 2 onwards where prices shot up to as high as $29.91 from $27.32 recorded on February 8; however, the breakout failed to sustain itself and we saw prices falling as low as $25.21 on February 11. The token has nearly lost 20% of its value in a matter of a few days. Despite the sideways trend currently present in CVX prices, we are currently at the very low of that channel, hence the token losing its price.

Arweave’s poor show hasn’t been continuing for weeks but months. Even if you look at the 3 months chart, the token has been falling continuously mimicking Solana since Solana’s data is stored on AR Weave. Even the last week hasn’t been much on the brighter side with the token gradually appreciating to a $42 level on 7th February after a long downside. However, it was unable to build support for long and prices slid to as low as $35 at the time of writing. In the last couple of weeks AR Weave recorded more than 20% to 25% token depreciation. 

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Though these cryptos have fared worse this week, nonetheless, they do have a strong use case for the future. Especially tokens like Kadena. Not a financial advice though but if you have bought them, for safe keeping a hardware wallet could be a good option to pick. These wallets protect your coins from misuse since you own the private keys which are fully in your own control.