Metaverse Suffers 89% Drawdown, Worst in Crypto Sector This Year

• Metaverse experienced a 89% drawdown in 2022, making it the biggest loser in the crypto sector this year.
• Privacy coins performed well, with Monero leading the pack, accumulating only a 35% drawdown.
• Meta, one of the biggest proponents of Metaverse, has also performed badly since the company switched its name from Facebook and pivoted towards this next level of the internet.

It has been a tumultuous year in the crypto sector, with many narratives rising to the top and then crashing hard. According to Arcane Research’s 2022 – Year in Review report, the biggest loser of the year was the Metaverse narrative, which experienced a drawdown of 89% over the course of the year.

Metaverse is a mythical digital parallel world that has been gaining significant traction in the crypto sector for some time now. Last year, the narrative was at its peak, with many believing that the new technology would revolutionize the internet as we know it. However, it appears that the hype surrounding the project was unable to survive the bear market, as the year-end report shows the sector taking a massive hit.

Privacy coins, on the other hand, have been performing relatively well over the course of the year, with Monero leading the pack. The report notes that the sector’s performance is likely due to Monero’s sustained utility in darknet transactions. Year-to-date, XMR itself is down 35%.

The Metaverse narrative has been heavily linked to Meta, a company that switched its name from Facebook and pivoted towards this next level of the internet. Unfortunately, it appears that the company has not been performing as well as anticipated, with the project amassing significant losses over the course of the year. To make matters worse, the company also went through a round of layoffs earlier this year.

Overall, it appears that the bear market has taken its toll on the crypto sector, with many of the projects that were once thought to revolutionize the industry now seeing major losses. While privacy coins have managed to stay relatively afloat, it appears that the Metaverse narrative has been hit the hardest, with the sector experiencing a drawdown of 89% over the course of the year.