Like in other markets, there is a herd mentality that plays out in crypto. However, if you buy what everyone else is buying, chances of exponential gains decline.
Like in all other markets, the most profitable investors in crypto are those that look where the crowd is not looking.
Most new investors in crypto tend to focus on Bitcoin, yet others below it can outperform it by many multiples.
On this basis, this article explores some cryptos that have the potential to give investors above-average returns.
The Crypto Market Bounces Back.
In the last three weeks, the crypto market has bounced back from its lows of June 2021. While the market is yet to retest its all-time highs, most cryptos are now fairly valued. To make the most out of this market, you need to buy undervalued cryptos and then watch them grow.
3 Cryptocurrencies To Buy Now At Massive Discounts
Chainlink
The first cryptocurrency that is heavily undervalued is Chainlink. While it has gained over 30% in the past couple of weeks, Chainlink is still heavily undervalued when considering what lies ahead.
One of the factors that make Chainlink heavily undervalued at current prices is staking. Chainlink currently has its first summit since launch, and one of the things that is expected to be discussed is staking.
This is a big deal because of the excitement it will create around Chainlink once it is implemented.
For context on how big of a deal this is, one needs to look at the impact of staking on Ethereum.
Ethereum picked upside momentum in December 2020 when ETH staking started and hit highs of $4300.
Chainlink, like Ethereum, is one of the most important players in the crypto ecosystem, so it is not hard to see why it is highly undervalued ahead of staking.
Besides staking, Chainlink’s fortunes are strongly intertwined with those of Ethereum. Ethereum is in the process of transitioning from a Proof-of-Work blockchain to a Proof-of-Stake.
At the center of this transition are layer two scaling solutions such as Optimism and Arbitrum.
Both of these have confirmed that they will be using Chainlink for data. Chainlink oracles are already up and running on Optimism for LINK/USD, ETH/USD, BTC/USD, and SNX/USD.
With Ethereum 2.0 expected to open up the Ethereum blockchain for mass adoption, Chainlink is strategically placed to grow with it.
Chainlink is also the dominant player in the oracles space. This is important because adoption tends to gravitate towards the winners.
In the oracle’s space, Chainlink has more than 600 integrations. Its competitors combined fall short by over 40% of its total partner integrations.
There are also cases where projects have used other data providers, got compromised, and moved back to Chainlink.
All these points to crypto that is well-positioned for growth and is highly undervalued at current prices.
Besides, with all these factors at play, Chainlink is still trading way below its all-time highs. Without a doubt, it is one of the best cryptocurrencies to buy now at massive discounts.
Don't Miss: Is Chainlink a Good Investment?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Ethereum
Another crypto that is trading at a massive discount is Ethereum. Despite its current rally that has seen retest $3k for the first time in months, Ethereum’s most recent developments make it one of the most undervalued cryptocurrencies in the market today.
The biggest of these developments is the London fork. While there were fears that this hard fork could fail due to resistance by miners, it went through without much of a problem.
Ethereum founder Vitalik Buterin even commented on this upgrade, terming it a major step towards the actualization of Ethereum 2.0.
The big deal with the London Fork is that it has created an element of predictability in Ethereum gas fees. It has also introduced coin burning to the Ethereum network.
Both of these attributes are a big deal to the long-term growth of Ethereum and make it heavily discounted at current prices.
With the gas predictability feature, the Ethereum blockchain will be more attractive to developers looking to create smart contracts. Given that Ethereum already has the network effect, this upgrade could see it whitewash upcoming platform blockchains.
This is a big deal, especially when understood in the context of DeFi. DeFi has grown exponentially, and it is projected that by 2030, most of the money in centralized finance could flow into DeFi. This would make it a multi-trillion dollar market.
At the moment, almost all DeFi projects run on the Ethereum blockchain. Now that it has resolved a major aspect regarding its cost of use, even more, DeFi projects are likely to choose Ethereum for their projects.
The net effect is that the value of Ether will keep going up. It makes Ethereum heavily discounted at current prices despite the rising price.
As for the coin burn feature, it is simple economics at play. Ethereum is one of the most utilized blockchains in the market. In fact, its adoption metrics show that it is outpacing Bitcoin.
Now that its usability is getting better, it goes without saying that demand will always stay higher than the supply going forward.
As a consequence, Ethereum could easily test prices in the 10s of thousands of dollars in the near term.
When looked at from this perspective, then Ethereum is trading at a massive discount. That’s not forgetting that speculators, who expect higher prices after the full Ethereum 2.0 launch, are a factor in its price dynamics in the short term.
Read Also: 26 Reasons Why You Should Invest in Ethereum Today
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Filecoin
Filecoin is another crypto that is trading at a discount when looked at from the perspective of its market potential.
Filecoin is going after the cloud storage market, a market that is worth upwards of $46 billion.
It is a market that is growing quite fast too and is expected to be worth upwards of $200 billion before 2030.
While tech giants currently dominate the market, Filecoin is gaining. It’s winning because the protocol is designed to incentivize usage.
Since it relies on a network of decentralized nodes, it is more secure than centralized cloud storage systems. It is also more affordable to store files on the Filecoin blockchain.
From an investor perspective, Filecoin makes a lot of sense too. That’s because users looking to store files have to pay in Filecoin. This basically means that as more people use the network for file storage, so will the coin’s value.
Besides the growing usage, Filecoin is also trading at a massive discount. During the crypto rally that ended in May, Filecoin was trading at over $200 a coin. Today it is trading at around $69.
It had dropped below $50 in the heat of the bear market but has since rebound. Since its price action is heavily correlated to the broader market, the increase in overall market buying momentum is good for Filecoin.
It makes this crypto one of the best cryptocurrencies to buy now at massive discounts.
Check Out: Could Filecoin Be A Millionaire-Maker Coin?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.