Cryptocurrencies have had a volatile year with prices falling and trading tumbling. What’s next?

The crypto ecosystem has seen a turbulent 2022 as the price of Bitcoin plummets, sales of non-fungible tokens decline and several major crypto companies collapse, but one investor told Fox News that the technology powering the ecosystem cryptocurrency has untapped potential.

“There is still a clear use case for decentralization and cryptocurrencies,” investor and Palantir co-founder Joe Lonsdale told Fox News in early December. “This ecosystem, over the long term, I think some of these things will emerge as useful for the world.”

WATCH PALANTIR CO-FOUNDER PREDICT THE FUTURE OF CRYPTO TRADING:

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Despite Lonsdale’s optimism, Bitcoin, the most popular cryptocurrency, started the year with a value of nearly $48,000 per coin but tumbled to about $17,000, a drop of about 65% since January. And nearly every major cryptocurrency is down more than 50% year over year in 2022, according to data from Fox Business.

Joe Lonsdale in his office

Investor Joe Lonsdale said blockchain technology still has many clear uses despite the volatile year for cryptocurrencies. (Fox News Digital / Jon Michael Raasch / Fox News)

Non-fungible token (NFT) transactions — digital assets such as images or collectibles stored on blockchain — totaled over $17.2 billion in January 2022. NFT transactions dropped to $414 million in November 2022 — a decrease of 98%, according to Dune Analytics.

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Lonsdale said previously many cryptocurrency companies that failed this year went bankrupt due to “a lot of corruption.”

FTX, once one of the largest cryptocurrency companies, filed for bankruptcy on November 11th. The founder, Sam Bankman-Fried, was extradited from the Bahamas to the United States on December 22 to face multiple charges from the Securities and Exchange Commission and the Southern District of New York.

Sam Bankman-Fried

FTX cryptocurrency exchange founder and former CEO Sam Bankman-Fried leaves the Magistrate Court building in Nassau, The Bahamas on Dec. 19, 2022. (Photo Reuters / Reuters)

In the wake of the FTX crash, another major cryptocurrency exchange, Binance, which processes more crypto transactions than all of its competitors combined, has faced intense scrutiny over its transparency.

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“Bitcoin has done the world a lot of good,” Lonsdale said earlier. “It has helped people get money from Russia, Venezuela, China. It allows more freedom to the financial system from governments that do really bad things.”

“So long-term, there’s a good chunk of crypto, but most of what we’ve seen in crypto over the last three, four, five years has been a bubble,” he continued.

To watch Lonsdale’s full interview on the future of cryptocurrencies, click here.

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