A handful of cryptocurrencies, including Bitcoin (Cryptography: BTC) and XRP (Cryptography: XRP)in response to President Donald Trump’s new tariffs, the worst possible decline could be avoided.
Most top-level cryptocurrencies have fallen at least 20% a year, with two major categories of cryptocurrencies (layer 1 blockchain network and memecoin) being particularly slammed. Let’s take a closer look at whether any of these beaten ciphers are worth buying now.
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Layer 1 blockchain networks such as Ethereum (Encryption: ETH)Solana (Cryptography: Sol)Cardano (Cryptography: ADA)sui (Cryptography: sui)and avalanches (Cryptography: avax)has decreased significantly. They all still boast a market capitalization of over $9 billion, but are ranked one of the top 15 cryptocurrencies in the world. However, it has become clear that many investors will not touch them.
The worst performance with a wide margin was Ethereum. Solana and Cardano cut the disappointing 20% per year, while Ethereum is an eye-opening 46%. Investor sentiment about Ethereum is very negative, and the gap between Ethereum and its closest rival appears to be narrowing.
Frankly, this shouldn’t happen. After all, Ethereum is the second largest cryptocurrency in the world, with a market value of almost $220 billion. This is one of two ciphers (Bitcoin is the other) with a Spot Exchange Trading Fund (ETF). Over the past decade, we have had an impeccable track record of providing extraordinary returns to investors.
Despite the current slides, Ethereum still appears to support the Trump administration, and in March became the basis for a new US digital asset stockpile. Members of the Trump family, including President Trump himself, publicly assured Ethereum on social media. And World Liberty Financial, a crypto company belonging to the Trump family, has made Ethereum a well-known ownership.
If there is a crypto category that is currently worse than the Layer 1 blockchain, it is a meme coin. The current tariff environment has provided a severe risk-off mentality among investors, with no good reason to invest in memecoin for months.
Image source: Getty Images.
Dogecoin (Cryptography: Doge)Top meme coins by market capitalization have fallen 45% this year. Shiba inu (Cryptography: Shibu)the second largest meme coin has fallen by 37%. Pepe (Code: Pepe)the third largest meme coin has dropped by 53%. And the official Trump memecoin (trading under ticker Trump), the fourth largest memecoin, has scored 84% since it debuted in January.
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The message from investors was not clear. Stay away from the coins of memes. Even before tariffs, meme coins were dangerous and speculative investments. Now they’re a complete trash can fire, and Cathie Wood of Ark Invest recently suggests that almost all of them are not worth it anytime soon.
That’s not to say that some meme coins don’t pop at times, but it can be a bouncing off a dead cat. (Or, in the case of Dogecoin and Shiba Inu, it’s a bouncing off a dead dog.) Sorry, I’m a pet lover, but I can’t imagine a worse place to invest your money right now. If you’re buying animal themed meme coins now, we’re offering exit liquidity to investors who are currently suffering huge losses.
Sieve through the Crypto Discount Bin to see if you’ll find a bargain. After all, we’re talking about billions of dollars of digital assets whose value has been reduced in months to a range of 20% to 50%. Certainly, is there quite a bit somewhere?
With that in mind, one code that may be worth exploring now is Solana. Even amidst the uncertainty of tariffs, the activity appears to be picking up on Solana’s blockchain. And Solana has clearly emerged as Ethereum’s top challenger. Above all, we’ve seen how much Solana can pop. In 2023, Solana skyrocketed over 900%.
Keep this in mind. Concerns about the recession, inflation and potential trade wars mean that there is absolutely no current appetite for many cryptocurrency investments. For now, Bitcoin remains the top code to target amid tariff uncertainty. Historically, Bitcoin is more resilient than other cryptos in the face of economic and geopolitical uncertainty and may be the best option as a potential hedge against a global economic slowdown.
Consider this before purchasing stocks on Ethereum.
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Dominique Baslutt holds positions in Bitcoin, Cardano, Ethereum, Solana, SUI and XRP. Motley Fools have and recommends avalanches, Bitcoin, Cardano, Ethereum, Solana, SUI, and XRP positions. Motley Fools have a disclosure policy.
Two types of cryptocurrencies criticized by President Trump’s new tariffs
