Amp crypto price has plunged and entered a bear market this year, mirroring the performance of most altcoins. 

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Amp dropped to $0.0033 on Tuesday, down by over 77% from its highest level in November last year. Its market cap has slipped from over $965 million to $283 million today. 

A potential reason why Amp has plunged is that the total value locked on Flexa has been in a free fall this year. It has dropped to $20.8 million, down from the year-to-date high of $295 million. 

Activity on the Flexa Network is critical for Amp, as the token provides the collateralization mechanism that underpins the platform. Flexa is a payments network that integrates with point-of-sale systems to allow merchants to accept crypto. Companies such as Chipotle, GameStop, and Ulta Beauty are among those using it.

Amp serves as collateral to guarantee payments. If a transaction fails or takes too long to settle, staked AMP tokens can be liquidated to ensure merchants receive funds promptly.