The crypto winter inflicted a brutal toll on the digital currency landscape, leaving numerous coins with values utterly obliterated. Within this ravaged financial terrain, one specific category — rebase tokens — suffered a tremendous deflation in worth over the previous 20 months. In a stark illustration of this downturn, the total value of the leading rebase tokens, once exceeding $8 billion in November 2021, has now plummeted to a mere $351 million.
Crypto Winter Chills Rebase Tokens: A $7.68 Billion Loss in Value
In 2021, the rebase token economy soared to an impressive $8.03 billion, concurrent with the crypto economy’s monumental valuation of $2.78 trillion. Fast forward to the present, and the crypto economy has contracted to $1.21 trillion, with a significant portion of value having been drained from the rebase token economy during 2022’s bear market cycle.
At their core, rebase tokens represent a category of cryptocurrencies capable of modifying their supply through a mechanism known as rebasing. This distinctive class of tokens strives to meet specific price targets or other financial objectives by dynamically altering the supply of tokens.
Having soared to heights exceeding $8 billion in November 2021, the rebase economy has since experienced a precipitous downfall, shedding a staggering $7.68 billion in value. A mere 20 months ago, Olympus DAO’s token OHM commanded a price of $856 per unit, while Wonderland’s token TIME boasted a value of $8,962 per coin.
As the calendar pages turned to August 11, 2023, archived data reveals a dramatic shift: OHM has plummeted to $10.60 per coin, and TIME has tumbled to $13.60. OHM, once the titan of the rebase tokens with a market capitalization of $3.99 billion, retains its crown today, despite sliding to a modest $191 million.
TIME, which once comfortably held the second position with a market valuation of $2.05 billion, has now descended to the seventh spot, reduced to a mere $12.23 million. Positioned between TIME and OHM in the digital currency hierarchy are coins such as TEMPLE, SB, AMPL, FHM, and KLIMA.
The market has been brutal to several of these assets; TEMPLE has retreated 68.76% from its all-time high, while AMPL has declined by 73.55% from its peak. The data paints a detailed picture of OHM’s presence, with 26.66 million tokens spread across 6,927 unique addresses. 17,939,074 OHM is circulating today and Olympus DAO claims the liquid backing toward OHM is $11.34 per OHM.
OHM’s activity is further evidenced by a total of 365,981 transfers, with the Olympus DAO wallet holding 62.79% of the existing supply. On the other side, Wonderland’s TIME flaunts a circulating tally of 51,970,826.48 coins, held in 33,648 distinct addresses. A staggering 99.93% of this vast supply is nestled within the Wonderland TIME staking address.
Despite the severe decimation that rebase tokens have endured, reducing their value to a meager $351 million, this figure resonates like a faint heartbeat within the broader crypto economy — a landscape that has exhibited a more robust recovery. While rebase tokens languish, the greater digital currency world has demonstrated resilience, healing at a pace that outstrips the rebase token economy’s slow recovery of rebase tokens.
What do you think about the rebase token economy and the downturn it has endured over the past 20 months? Share your thoughts and opinions about this subject in the comments section below.