Numerous efforts, including the much-discussed Layer-2 networks and Bitcoin splits, fell short of the mark. The top 5 cryptocurrency underperformers of 2024 will be shown in this article, along with an analysis of their shortcomings.
These were the worst-performing coins, those that crashed in spite of the optimistic market circumstances, even as the whole cryptocurrency market soared. These are the worst cryptocurrency investments of the year thus far, ranging from unsuccessful debutants to old favorites:
1. MultiversX (EGLD)
First on our list is MultiversX (formerly Elrond), a project that sought to solve blockchain scalability with high throughput and low fees. However, due to a number of setbacks, the team's native token, EGLD, has dropped over 60% this year. Investor confidence has been damaged by past missed deadlines, such as the launch of its Maiar DEX. Furthermore, despite claiming high performance, MultiversX has not attracted the same level of adoption and developer activity as its competitors. The project's rebranding from Elrond also drew criticism. Finally, changes in its staking model sparked concerns about centralization. Considering all of this, it is easy to see why EGLD has been among the worst cryptocurrency projects of the year.
Can it, however, bounce back? MultiversX's team has to put an end to community issues and encourage further ecosystem growth if they hope to turn things around. It would take time to reestablish trust, but this would be a good place to start.
Coin Price: $29.48;
Change from Year-to-Date: -60%
$542.58 is the all-time high (November 2021)
2. Optimism (OP)
Ethereum's scale problems were supposed to be resolved by optimism (OP), but its native OP coin has turned into just another example of dwindling Layer-2 hype. Since the beginning of 2024, the value of OP has decreased by more than 52% as concerns about its long-term viability have grown.
Upgrades to Ethereum appear to be improving scalability at the basic level, raising doubts about the necessity of Layer-2s like optimism. Adding to the problems, OP is up against competitors like Arbitrum, which has a greater Total Value Locked (TVL).
After reaching an all-time high of $4.85 in March, OP's decline was a typical case of "buy the rumor, sell the news." OP's waning enthusiasm is seen in the absence of effective apps fueling genuine demand.
For optimism to revive, it must demonstrate that its Layer-2 solution will continue to be beneficial over time. However, Optimism will probably have a difficult time winning back investor trust given the popularity of alternatives like Base.
Coin Value: $1.89
Change from Year to Date: -52%
$4.85 is the all-time high (March 2024)
3. Celestia (TIA)
Celestia is the largest cryptocurrency failure (TIA). The native TIA token of this modular blockchain has been locked in a negative spiral despite the promise that it will revolutionize scalability. As of this writing, TIA has decreased by 46% from the year's beginning.
Despite the high accolades for Celestia's technology, macro forces proved to be too strong for the developer's grandiose claims. Furthermore, because of TIA and Bitcoin's strong link, the token's price has been stuck in a downward trend for the past few weeks.
To make matters worse, constant selling pressure has been added by the token unlocks from Celestia's original distribution. Even the open interest in TIA futures has drastically decreased since March.
In order for TIA to recover, its creators need to deliver functional products that demonstrate the advantages of its design. Furthermore, the overall attitude in the cryptocurrency market will need to significantly improve.
Coin Value: $6.45;
Change from Year to Date: -46%
$20.91 is the all-time high (February 2024)
4. Bitcoin SV (BSV)
The goal of Bitcoin Satoshi Vision, or Bitcoin SV (BSV), was to bring back the original Bitcoin protocol. But in 2024, its blockchain hasn't done that well. Consequently, BSV's value has decreased by more than 56% since the beginning of the year.
BSV has disappointed investors while never claiming to be the finest cryptocurrency available. Adoption, developer activity, and practical value are now lacking.
Craig Wright, the self-described "Satoshi," suffered a setback to his reputation when a UK court determined he had lied and given false testimony. The ongoing turmoil surrounding Wright's legal disputes (and dubious assertions) has damaged Bitcoin SV's standing. The project seems to be stuck in a rut.
BSV risks becoming just another abandoned fork if it can't find a way to boost developer usage, promote decentralization, and inspire trust. It follows that BSV's ranking among the poorest cryptocurrency performances of the year is not surprising.
Coin Price: $44.19;
Change from Year to Date: -56%
$491.64 is the all-time high (April 2021)
5. Arbitrum (ARB)
Arbitrum (ARB) is another of the largest cryptocurrency losses of the year. Although the ARB coin was destroyed in 2024, Arbitrum was supposed to be Ethereum's golden child. Now trading below $1, ARB has dropped more than 50%.
It appears that Arbitrum has been hampered by bad timing. More than 92 million vested ARB tokens were released into the market in April. This equated to a supply of more than $100 million, and the market was unable to withstand the selling pressure.
Losses increased as Ethereum's network improvements eclipsed Arbitrum's claimed benefits of scaling. Consequently, in light of Ethereum's own advancements, ARB has dropped from being among the top Layer-2 blockchain assets to an afterthought.
On-chain data, however, indicates a rise in "whale activity," suggesting that major purchasers could be purchasing tokens in anticipation of a rally. However, in order for that to occur, Arbitrum needs to set itself apart from existing Layer-2 networks by providing a value proposition that both consumers and developers find appealing. For further information on $ARB's future prospects, see our projection for the price of arbitrum.
Value of the coin: $0.814
Change from Year to Date: -50%
$2.40 is the all-time high (January 2024)
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