The report shows that Metaverse, the killer narrative of 2021, turned out to be the biggest loser in the cryptocurrency sector this year.

Metaverse sees a reduction of 89% during the year 2022

According to Arcane Research’s end-of-year report, both the Layer 1 alt craze and last year’s Metaverse hype came crashing down hard in 2022. Here’s a graph showing how some of the biggest narratives in the game performed. 2021 this year:

The year-to-date drawdowns of some of the digital asset sectors | Source: Arcane Research's 2022 - Year in Review

As the chart above shows, privacy coins performed the best of all these market segments this year, but the sector still racked up significant losses of around 47%. The report notes that privacy coins are likely to outperform others due to…