Diving into the turbulent waters of 2023, the crypto market witnessed stars rising and laggards struggling for prominence. Solana (SOL) soared to new heights, while others faced challenges. Let’s explore the dynamic landscape of the crypto realm, from high-flying winners to steadfast underperformers, and guide investors through decisions in this recap of 2023’s crypto journey.
Top Performers of 2023
In the crypto sphere of 2023, Solana (SOL) emerged as the star performer, exhibiting a staggering growth of over 495% throughout the year. Starting at less than $10, SOL skyrocketed to an impressive $59.25, reaching its peak of over $65 in mid-November 2023.
Securing the second position is Chainlink (LINK), boasting an impressive surge of almost 160% in the past year. Starting the year at around $5, LINK’s value soared to $14.5, hitting its highest point of over $16.5 in November 2023.
Bitcoin Cash (BCH) takes the third spot with a notable 129.43% increase, surging from $97 to over $222. BCH experienced its peak growth, surpassing $305 in July 2023.
The pioneer itself, Bitcoin (BTC), demonstrated robust performance, recording a growth of 128.34%. Starting at $16,500 in early 2023, BTC is now trading at an impressive $37,807, marking a stellar year.
Closing the top five performers is Avalanche (AVAX), showcasing a commendable annual growth of 92.3%. Beginning the year with struggles to reach $11, AVAX is now valued at approximately $21, reaching its highest point above $22 in November.
Underperformers of 2023
However, not all coins basked in glory. Among the underperformers, BNB (BNB) faced a decline of 7.9%, dropping from approximately $246 to $226.66. Despite reaching over $348 in April, investors who held on from the beginning of the year might not be satisfied.
Litecoin (LTC), the second laggard, experienced a slight drop of almost 2%, transitioning from $70 to $69 throughout the year. Despite surpassing $113 in July, LTC struggled to maintain its value.
The once-promising Polygon Coin (MATIC) witnessed a 1.25% dip from its early 2023 value of $0.75. Despite hitting a high of $1.5 in February, MATIC displayed a consistent downward trend.
The meme coin sensation, Shiba Inu (SHIB), saw minimal gains of just over 1% in the year, with its price tag still adorned with numerous zeros. Despite shedding one zero in February, SHIB faced a continuous decline.
Toncoin (TON), known for its high volatility, recorded a modest increase of 11%, moving from $2.17 to $2.42 throughout the year. Reaching its peak at $2.65 in November, TON displayed a relatively subdued performance.
What Should Investors Do with Their Underperforming Crypto?
Investors with underperforming coins in their 2023 portfolios face decisions based on their risk tolerance, investment goals, and market analysis. Here are possible actions:
Hold and Monitor:
For Stable Projects: If the coins belong to established projects with solid fundamentals, consider holding. Crypto markets are highly volatile, and values can fluctuate.
Watch Trends: Monitor market trends, project developments, and industry news. A coin’s fortunes can change with significant updates or partnerships.
Diversify Portfolio:
Explore Other Assets: Consider diversifying your portfolio by exploring other cryptocurrencies or assets with potential growth. This spreads risk and increases opportunities.
Reassess Investment Strategy:
Long-Term vs. Short-Term: Reevaluate your investment strategy. If the goal is long-term gains, short-term fluctuations may be less concerning. For short-term investors, reassess the coin’s potential.
Cut Losses:
Risk Mitigation: If a coin shows prolonged poor performance and lacks positive catalysts, cutting losses might be prudent. Reallocate funds to more promising assets.
Consult Financial Advisor:
Professional Guidance: Seek advice from a financial advisor. They can provide personalized guidance based on your financial situation, risk tolerance, and investment objectives.
Stay Informed:
Market Dynamics: Stay informed about overall market dynamics. Cryptocurrency markets are influenced by various factors, including regulatory changes, technological advancements, and market sentiment.
Remember, the crypto market is dynamic, and past performance of SOL, BCH, BTC, AVAX or LINK doesn’t guarantee future results. Likewise, Litecoin may not have performed well in 2023, but that doesn’t mean it deserves a LTC to XVG swap. Although Verge has the best performance this year, it is ranked 429th in the crypto rankings, making it a riskier asset for long-term investment. While Litecoin investors can still take a cut in 2024.
