5 Beaten-Up Cryptocurrencies For Bargain Hunters
For someone who wants a good deal, these are the cryptocurrencies to watch
- These cryptocurrencies have been fallen in value, but that is no reason to dismiss them, as they all have plenty of growth potential.
- They are among the most fundamentally strong cryptocurrencies in the market today.
- While they are all in the red, all five of these cryptocurrencies are good long-term investments.
Buying cryptocurrencies when they are falling is the best way to position yourself for a high return on investment long term. However, not every cryptocurrency that is in the red is guaranteed to recover.
Lots of ICO projects from 2017 never recovered from the 2018 crash.
As such, it is important to understand the reason why a cryptocurrency’s price is dropping. It is equally essential to understand the core fundamentals that give such a cryptocurrency value in the first place. If the fundamentals are good, then crypto in the red is a good investment.
Five cryptocurrencies that have been falling for the past week that could be great buys today are Dogecoin (DOGE), Chainlink (LINK), Ethereum (ETH), Binance coin (BNB), and Bitcoin (BTC).
They have fallen by over 7% in the past week, but there is a lot to like about these cryptocurrencies long term.
Dogecoin is pretty beaten up at the moment. It is yet to retest its all-time highs after the correction in May. In recent weeks, it has experienced a significant correction too. In the last one week alone, Dogecoin is down by 8%.
However, going by its fundamentals, Dogecoin is highly undervalued at current prices. That’s because it has big news coming up in the short term.
The biggest news regarding Dogecoin is the Doge-1 mission that is coming up in Q1 of 2022. The mission is funded in Dogecoin and aims to experiment with the use of cryptocurrencies in interplanetary commerce.
However, the big deal is not the goal of the mission, but the FOMO it could create around Dogecoin.
In the past, Dogecoin has proven to be highly responsive to hype. In the crypto rally that ended in May this year, Dogecoin hit a record of 12,000% in under a year.
There was a little fundamental basis to this rally. All it took was Elon Musk tweeting good things about Dogecoin.
This time around, it is a combination of fundamentals and hype that could see its value rally in the short to medium term.
The Doge-1 mission is the hype side of things, and it’s even bigger than Elon Musk’s tweets. That’s because this time around, the media coverage will be bigger since it’s a lunar event.
In terms of fundamentals, Dogecoin is a lot better than it was in the past. For instance, its adoption is higher than it has ever been at any point in its history.
Then there is the fact that the developer team is working to make Dogecoin scale better, and handle transactions more cheaply.
One of the proposals they had put forth was to increase the block size. If they implement this, or whichever other proposal they settle on, the end result will be a win for Dogecoin.
That’s because, if Dogecoin can scale better, and handle transactions at prices lower than the current ones, then adoption would grow faster too.
With a potential hype cycle coming for Dogecoin, and its functionality as payment crypto set to improve, Dogecoin’s future is pretty bright.
DOGE has the potential to record another couple thousand percentage gains in the next Bull Run. As such, it is one of those beaten-down cryptocurrencies that make sense to buy at current prices.
Like Dogecoin, Chainlink is yet to retest its all-time highs after the crash in May. It has also taken a huge hit in the past week and is currently trading at $25 down from a high of $33.
Despite its weak performance since May, Chainlink happens to be one of the most fundamentally strong cryptocurrencies in the market today.
Its biggest strength is that it is the most dominant cryptocurrency in the decentralized oracles space. Chainlink’s share of the market is at over 65%, and with more projects integrating it, dominance is only set to grow.
Even better, Chainlink has dominance in one of the most important aspects of the crypto market. Every project that runs smart contracts needs real-world data for such contracts to be useful in everyday life.
For instance, a project that uses smart contracts in DeFi needs a reliable price feed for it to run. Similarly, a smart contract that runs weather-related applications requires accurate and reliable weather data in real-time. The same can be said of pretty much any other smart contract.
This means as long as cryptocurrencies keep growing, Chainlink’s usage will keep rising as well. It’s a factor that not only makes it highly undervalued but guarantees its value appreciation going into the future.
Besides a strong use case, Chainlink is a highly innovative project and is able to handle all the pressure that comes with heavy usage.
For instance, Chainlink uses hybrid smart contracts, a factor that helps it scale with ease. Hybrid smart contracts work by combining on-chain data with off-chain data that is offered by other decentralized networks.
By using hybrid smart contracts, Chainlink is able to handle a wider range of on-chain collaborations. This has been vital in its ability to handle the diverse and complex data requirements of DeFi projects.
Some of the complex DeFi data needs that Chainlink is able to support thanks to its hybrid smart contracts include dYdX leveraged markets, Aave money markets, and Ampleforth’s algorithmic stablecoins.
Besides its innovative approach to the decentralized data market, the kind of projects that are integrating Chainlink point to its bright future.
For instance, Chainlink was recently integrated into Solana, one of the fastest-growing platform blockchains in the market today.
With DeFi set for explosive growth on the Solana blockchain (due to its scalability), it spells good tidings for Chainlink.
There is so much going for Chainlink that it should be among the top cryptos that any bargain hunter looking for beaten-up cryptocurrencies should consider.
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Ethereum came close to retesting its all-time highs in early September but has since entered another corrective wave. From highs of over $4000, Ethereum is currently trading at $3025.
However, the price correction aside, Ethereum happens to be one of the most fundamentally strong cryptocurrencies in the market today. It is possibly the only altcoin that rivals Bitcoin in terms of the network effect.
Ethereum’s biggest strength is that it pioneered the ERC-20 standard. This has seen it become the number one platform blockchain and now accounts for a huge percentage of all new tokens coming to the market.
Essentially this means, as the crypto market continues to expand, so will the value of Ethereum. That’s because one needs Ether for them to run any project on Ethereum.
While this is a big deal in terms of Ethereum’s value growth, it has also been its biggest challenge. Ethereum has operated at peak capacity for years now, and this has led to an upsurge in the number of supposed Ethereum killers.
The only problem is that for them to scale efficiently, most of these new blockchains only run a few nodes. This means Ethereum still has an edge because though it may be slow, it is decentralized and more secure.
Besides, Ethereum is in the process of an upgrade that will see it become faster, and its transactions cheaper.
Ethereum’s upgrade is through a shift to Proof-of-Stake, and the introduction of layer-2 scaling solutions such as Optimism.
The transition is going on pretty well, and recently they did a hard fork that is helping stabilize gas fees. This is done by having an algorithm determine gas prices instead of having users bid.
With such upgrades, once the transition to Ethereum 2.0 is complete, Ethereum will be much more scalable, and more affordable.
For a blockchain that already has the network effect, this could see its dominance as the top platform blockchain grow exponentially. By extension, this could bid up the price of Ethereum by many multiples from where it is today.
Ethereum’s long-term price action will also be favoured by its growing adoption as an investment by institutional players.
Like Bitcoin, the number of institutional-grade investment funds targeting Ethereum is on the rise. This is likely to bid up its price in the long run, due to the factors of demand and supply. For a crypto bargain hunter, it is definitely a top pick.
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Binance coin is still off from its all-time highs and is currently in a correction. In the past week, it has dropped by 7%, and the selloff has accelerated. From its all-time highs of $667, Binance coin is now trading just slightly above $336.
Despite its current price action, Binance coin is still one of the best cryptocurrencies and a must-have for every bargain hunter.
One of the factors that make Binance coin stand out is its use cases. Binance coin is easily one of the most adopted cryptocurrencies in the market today.
It is used to pay fees on the Binance exchange and is also the crypto that powers the Binance Smart Chain. It’s a big deal because BSC is Binance’s smart contracts platform that now rivals Ethereum in terms of the projects being built on it.
With new projects launching on the BSC every day, the use-value of Binance coin will only grow. This will reflect in its price going into the future. With the DeFi market now in an explosive growth trajectory, it is one market that could easily push Binance Coin to double-digit valuations going into the future.
However, it is not just the demand for Binance coins that could play into this crypto’s favour long term. Its tokenomics are also among the most impressive in the crypto market.
Binance coin’s tokenomics are in such a way that the supply is ever going down as demand goes up. This is all thanks to its quarterly coin burn, a factor that has seen it become one of the most successful cryptocurrencies ever created. It went from a few pennies to highs of $667 in just 5-years.
Even more fascinating is the fact that Binance is looking to accelerate the burn rate for BNB. Originally, the plan was to burn a predetermined number of BNB every quarter for the next 27-years.
However, this has since changed and the Binance team intends to have the burn completed in the next 5 to 8 years. Essentially, this means that the burn rate could be higher in the coming quarters.
This is a factor that could see Binance coin rally quite hard in a very short time. That’s because, overall, its demand is going up, while its supply is shrinking at an accelerated rate.
For crypto of its caliber in terms of market recognition and respect, this is a factor that could see Binance coin trade at thousands of dollars per token in a very short time. For someone who buys now, that’s an impressive ROI.
Bitcoin can’t miss in the portfolio of a bargain chasing crypto investor. It is pretty beaten-up after the past week’s correction and is yet to retest its all-time highs of $64k.
Looking ahead, Bitcoin’s potential as an investment is quite huge. That’s because it is the largest and most adopted cryptocurrency. This means for many years, new investors coming to crypto, especially institutional ones, will always interact with Bitcoin first, then the altcoins.
Besides the network effect that makes it attractive, Bitcoin’s supply and demand dynamics are among the best in crypto. While its demand has been on an uptrend since launch, Bitcoin’s supply is by design to always lag.
Every 4.5 years, the block rewards (new Bitcoins awarded to miners), are cut in half. This has created supply shocks in the past, and the same has been reflected in the price.
For instance, after the 2016 halving, Bitcoin rallied from a little over $600 to hit a high of $20k in December 2017.
Similarly, after the 2020 block halving, the price of Bitcoin went from a little over $8000 to a high of $64k in April 2021.
Bitcoin’s block rewards are set to decline even further after the 2024 block halving. After the upcoming halving, Bitcoin’s block rewards will drop to 3.125 per block.
If previous halvings are anything to go by, then this could see the price of Bitcoin rocket to over $200k. Some predictions peg Bitcoin’s price at anywhere between $500k and $1 million in the next 5-years.
For bargain hunters looking for beaten-up cryptocurrencies, this is quite an insane ROI when buying Bitcoin at under $50k.
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