The remaining market uncertainty measures are revealed not to be sources of causal impacts in any examined cryptocurrency. These matters have drawn even larger opprobrium due to the development of the COVID-19 pandemic that started as a health crisis and rapidly developed into a global financial crisis. This pandemic has generated substantial global financial market volatility and has driven investors to seek alternative assets to preserve their portfolios at a satisfactory risk-return trade-off level. As an asset, cryptocurrencies have been considered to be primarily employed for speculation purposes but not as an alternative currency and medium of exchange (Fry, 2018, Kyriazis et al., 2020).

highest volatility crypto

Circulating supply shows the number of coins or tokens that have been issued so far. A Bitcoin ETF, or exchange-traded fund, is a type of investment fund that tracks the price of Bitcoin and a… Crypto enthusiasts have voiced concerns that greater government spending will fuel inflation in the future, and cryptocurrencies can help protect against this risk. This is higher than the typical levels of volatility seen in other asset classes. Bitcoin — the first cryptocurrency to be created — is considered extremely volatile. Therefore, investors may choose to invest in new assets when Bitcoin shows strong signs of reversal.

Why Is Bitcoin Still the Most Important Cryptocurrency?

“And it’s my job to show them what the risks are, how that concentration and that asset can impact their long-term goals and their portfolio.” It’s been a tough time for cryptocurrency but, despite volatility, you still need to know how the technology works, said Douglas Boneparth, a certified financial planner based in New York. Blockchain network has its own native crypto, used to reward miners and to pay for things, including fees.

  • As of the date this article was written, the author does not own any of the assets discussed here.
  • However, these protections will not compensate you for any losses from trading.
  • When you buy stock, you are buying a share of ownership of a company, which means you’re entitled to do things like vote on the direction of the company.
  • Its price received a major boost due to the listing on popular exchanges and reached its High at $0.04 in September.
  • Bitcoin remains the most volatile cryptocurrency as its prices swing with each waking day.
  • This is significantly faster than Bitcoin and Ethereum, which can take minutes.
  • When it comes to market uncertainty measures, they also present very large phases of growth during October and November 2020.

This indicates that non-linearity exists in a statistically significant manner even at the 99% confidence level. However, Tether is revealed to exhibit some safe-haven characteristics towards several examined indices3. Guo et al. find that the COVID-19 crisis has led to a stronger contagion effect between Bitcoin and developed markets. It is identified that both US and European markets remain contagion sources to Bitcoin while gold, the US dollar and bond markets are identified as receivers of contagion effects.

The differential influence of social media sentiment on cryptocurrency returns and volatility during COVID-19

Furthermore, the platform supports smart contracts, allowing developers to create and deploy decentralized applications easily. The token enables holders to participate in governance decisions and access exclusive content, events, and experiences within these communities. By linking the token to popular NFT projects, ApeCoin aims to leverage the growing interest in digital art and collectibles.

highest volatility crypto

In addition, the Shiba Inu project aims to broaden its ecosystem by creating an NFT marketplace and a gaming platform. Crypyo tokens are a type of cryptocurrency and represent digital assets that reside on their own blockchains. Solana had amarket capitalizationof $8.4 billion and was valued at around $21 on April 23, 2023, making it the ninth-largest cryptocurrency by market cap. As of April 23, 2023, Tether is the third-largest cryptocurrency by market capitalization, with a market cap of $81.4 billion and a per token value of $1.00.

The 16 Most Volatile Cryptocurrencies to Invest in 2023

The crypto market is up today as Bitcoin and altcoins react to $300 billion liquidity from the Federal Reserve — move being labeled new quantitative easing . Kyriazis N., Papadamou S., Corbet S. A systematic review of the bubble dynamics of cryptocurrency prices. Section 2 provides a concise review of the literature, along with an explanation surrounding the connection between EPU uncertainty measure’s interactions with financial markets.

highest volatility crypto

This is significantly faster than Bitcoin and Ethereum, which can take minutes. Secondly, XRP transactions have a negligible cost, making them an affordable option for retail and institutional users. The token is designed to serve as a medium of exchange, store of value, and unit of account for various web3 applications and platforms. Another key aspect of ApeCoin is its tokenomics, which follows a deflationary model. With a fixed supply of one billion tokens, scarcity plays a significant role in driving the token’s value. A portion of the tokens is allocated to the community treasury, ensuring funds for the project’s ongoing development and community initiatives.

Dogecoin – Most Unstable Crypto with High-Risk High-Reward Potential

The comments, opinions, and analyses expressed on Investopedia are for informational purposes online. As of the date this article was written, the author does not own any of the assets discussed here. Polygon was initially developed crypto volatility as a layer-2 solution to address the issues with Ethereum network congestion and traffic. Recent innovations have allowed it to become a multi-chain system where blockchains can work together using Ethereum’s virtual machine.

Given the thousands of cryptocurrencies in existence , it’s understandable you might want to take a diversified approach to investing in crypto to minimize the risk you lose money. Developed to help power decentralized finance uses, decentralized apps and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. Somewhat later to the crypto scene, Cardano is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.

Fight Out – Overall Best Volatile Move-to-Earn Cryptocurrency Project

Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters. A cryptocurrency is a digital asset that can circulate without the centralized authority of a bank or government. To date, there are 23,627 cryptocurrency projects out there that represent the entire $1 trillion crypto market. Tokens are digital assets that exist on another cryptocurrency’s blockchain.


Moreover, uncertainty measures non-linearly influence each cryptocurrency examined, at all quantiles except for Cardano at lower quantiles, and both Ripple and Stellar at both lower and higher quantiles. Cryptocurrencies with lower values are found to be unaffected by investor sentiment at extreme values, however, prove to be profitable due to more aligned investor behaviour. Before applying the Diks and Panchenko test for non-linear causal effects in means, the hypothesis of non-linearity should be tested by adopting the BDS test (Broock et al., 1996). If the null hypothesis holds, then the variables examined are identically and independently distributed (i.i.d.) but if the alternative hypothesis holds, then there is linear or non-linear dependency. Moreover, the methodology of Balcilar et al. is employed for testing non-linear quantile causality in mean and volatility of the cryptocurrencies under scrutiny. This methodology is an extension of the work of Nishiyama et al. and Jeong et al. and is beneficial for capturing causality in mean and causality in variance8.