Analysts from QR Asset highlight the cryptocurrency investments that performed the best and the ones that performed the worst during the month of May; The conclusion of Luna was a substantial contributor to the occurrence of severe decreases, and the fact that the leader in earnings raises questions
In other words, the assets that began or completed the month in the top 40 and that had a market value of more than one billion United States dollars at the beginning of May were chosen for the study. Those who began the month in the top 40 but finished outside of the top 100 were not eligible, nor were those whose market value at the beginning of the month was less than one billion US dollars. Also not eligible were those who started the month in the top 100 but finished outside of the top 100.
The specialists working for the management of one of the most important bitcoin exchange-traded funds (ETFs) in Brazil, QBTC11, noted that the cryptocurrency market as a whole had losses during the month of May.
Bitcoin and Ether had respective decreases of 22.3 and 34.4 percent versus the Brazilian real in the month of May. According to the experts working for QR Asset, this suggests that the effect of the decline of Luna and UST may have been larger than predicted, affecting the two primary currencies that are traded on the market.
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As an illustration of the void that may be left once the Terra network is shut down, the paper makes use of Brazilian banks that are commonplace in the country. If these banks collapsed, their worth would be about equivalent to that of Bradesco and somewhat less than that of Ita, taking into consideration the fact that it is believed that Luna and UST were responsible for losses of $40 billion, respectively.
QR Asset found that Luna had the lowest performance out of the top five cryptocurrencies it examined. Luna came in first position. She was the only one to achieve zero and had roughly twice as many losses as her partners in the ranking; she was accompanied by AVAX, Rune, CRO, and SOL. She was the only one to reach zero.
In addition to the almost fifty per cent decline that occurred in May, the four coins that follow Luna in the rankings have a great deal more in common. All of them are native currencies of smart contract networks, which have been considered to be significant prospective challengers to Ethereum since it is the biggest blockchain of its sort.
Only one of the cryptocurrencies chosen by the experts at QR Asset to have the greatest performance in May ended the month in the positive. The price of TRX, which is the native token of the Tron blockchain, increased by 29.5% over the time period in question as a direct result of the deployment of decentralised finance (DeFi) protocols in its ecosystem.
The Tron network has received nearly $2 billion in Total Locked Value (TVL), the form of investment required to earn the promised passive income, as a result of the company’s promise of high annual returns in exchange for deposits made in the stable-value cryptocurrency USDD, which was released earlier this month.
However, industry professionals and the management are concerned about the project’s similarities to the Anchor Protocol, which was part of the Terra ecosystem and was a network that housed the Luna and UST coins. This raises questions about the long-term viability of the initiative.
According to the firm, which continually examines the primary cryptocurrencies on the market for its ETFs, the negative fluctuations witnessed in May demonstrate the fear of investors with alternative cryptocurrencies following the conclusion of Terra Luna. This worry was shown by the company’s ETFs. The Dread and Greed Index has reached record highs for “severe fear,” indicating that market pessimism has reached a new level of intensity.