Top 3 Fallen Angels Cryptocurrencies to Avoid at All Cost

A fallen angel in the financial market refers to an asset that was once hot but has lost favor among investors. There are fallen angels across all sectors, including bonds, stocks, and cryptocurrencies. Here are some of the top fallen angels in crypto to avoid.

Filecoin

Filecoin is a blockchain project in the file storage industry. Its goal is to simplify the architecture of cloud computing. Instead of using centralised servers, it makes it possible for anyone with a smartphone, data center, and computer to provide data storage. 

At its peak, Filecoin’ FIL was one of the top 20 of the biggest cryptocurrency in the world. It had a market cap of overv $2 billion. Recently, however, the coin has plummeted. While this decline is in sync with other cryptocurrencies, investors were afraid of its network performance.

The main concern is that Filecoin will not be a mainstream product since other centralised platforms like Microsoft Azure and Amazon’s AWS work fine. One of Filecoin’s main use cases is in the storage of non-fungible tokens (NFT) through its partnership with OpenSea. 

However, NFT prices have plunged in the past few months. Therefore, there is a likelihood that Filecoin price will continue falling in the long term.

EOS

EOS is one of the top crypto fallen angels. It is a blockchain project that came out of Block.one, the company that raised over $4.5 billion in its Initial Coin Offering (ICO). EOS operates EOS Operating System, which is a rival to Ethereum and Cardano. 

However, in the past few years, EOS has struggled to gain traction among developers and crypto investors. According to DeFi Llama, it has a total value locked (TVL) of just $85 million. And most of this TVL is in EOS REX, which has a dominance of 66%. 

IOTA

IOTA is another fallen angel in the crypto industry. It describes itself as a tangle, which the developers claim is better than other blockchains. IOTA was started in 2016. In 2022, the developers launched Shimmer, which they hope will become a good platform for developers to build applications. However, its adoption has been relatively weak. 

The use-case for IOTA itself has been weak as well. Therefore, analysts believe that IOTA is a dead chain, which has no major use case today.

There are many other fallen angels in cryptocurrencies. Some of the notable mentions are Theta Network, Internet Computer, and Axie Infinity.