In the following article, we have selected the leading cryptocurrencies that are undervalued and could be poised for serious growth.
If you’re looking to invest in growth cryptos in 2022, then you’re probably aware of the major tokens like Bitcoin, Ethereum and Binance, but there are several top tokens that could be seriously undervalued and, as such, they present a serious opportunity for investors.
As cryptocurrency investing becomes increasingly mainstream, we see more and more similarities between the digital finance industry and traditional investment markets. One such similarity is that tokens are occasionally deemed as undervalued - just as stocks and shares can be.
Of course, some would argue that whether or not a cryptocurrency is undervalued or not is a subjective opinion, but for some investors such tokens represent opportunity. The cryptocurrency market is notoriously hard to predict, so when tokens are tipped for potential price surges, naturally this stirs up investor interest.
The past few months have been an interesting time for the cryptocurrency market. 2021 saw both a surge in demand for DeFi as well as the emergence of the NFT trend.
Yet 2022 saw a widespread market downturn. As such, many projects that have the potential to be major players in the next phase of the cryptocurrency era are considered to be underpriced. Fortunately for growth investors, there are still a handful of value plays among growth cryptos. Here are nine undervalued growth coins to buy, according to analysts.
9 Undervalued Growth Cryptocurrencies to Buy
It's probably fair to say that cryptocurrency prices, in general, remain subdued after the market downturn that struck in 2022. However, we feel that the following tokens are particularly undervalued and could be poised for significant growth in the near future:
We should point out that this list is only suggestive. The tokens were chosen due to their comparatively low token price as well as the higher prices they have been known to command previously. Of course, technical credentials and a solid real-world use case formed an important part of the criteria.
XRP
All-time high: $3.40
First on our list is Ripple. Famously known as the bankers' cryptocurrency, Ripple seeks to provide a low-cost, decentralised solution for interdenominational transfers between financial institutions. Effectively, the project aims to provide an alternative to the existing standard, SWIFT.
So why is it undervalued? Ripple’s native token, XRP, which acts as the medium of exchange on the protocol, took a major hit at the tail end of 2020 when the US Securities and Exchange Commission ruled that the token must be traded as a security, as opposed to a currency. This then led to charges being levied against two Ripple executives, Christian Larsen and Bradley Garlinghouse.
Ever since the ruling, XRP has remained well below its higher-end trading price. However, rumours are now abounding that the SEC’s case against Ripple may be about to collapse. Many investors expect this to have a positive impact on the price of XRP. Whilst the token weathered the SEC storm remarkably well, it is thought that it has remained undervalued since the trouble started.
Check Out: Ripple (XRP) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Algorand
All-time high: $3.56
Algorand is an advanced blockchain network that claims it can solve the industry’s famous trilemma - providing security and scalability, whilst remaining decentralised. It is certainly one of the most cutting edge smart chains out there, having only launched in 2019 and it has been claimed that the network will soon be able to process up to 3,000 transactions per second.
Algorand’s strengths lie in its pure proof-of-stake consensus mechanism, which involves randomly selecting validators from an approved pool. Its transaction performance and interoperability mean that Algordand is likely to continue to appeal to developers looking for an alternative to Ethereum and, given that it is currently trading almost 80% below its all-time high, we think ALGO could be a good pick in 2022.
Read Also: Algorand (ALGO) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Tezos
All-time high: $9.12
Tezos was originally developed by husband and wife Arthur and Kathleen Breitman, who believed they could improve upon existing blockchain technology. Development of the project started in earnest in 2014, but Tezos didn’t officially launch until September 2018.
Tezos’s main selling point is that it is a blockchain project that is designed to evolve, enabling it to meet the ever-demanding needs of the latest cryptocurrency projects. What this means is that Tezos was one of the first projects to adopt on-chain governance, meaning holders of XTZ could effectively steer the direction of the platform by voting on upgrades and development. Once these votes have been made, the Tezos platform can then implement them automatically - effectively upgrading itself.
This governance mechanism makes Tezos arguably more stable than many other smart chains and as more and more mainstream investors come to the cryptocurrency market, stability could prove a major selling point. For this reason, we think Tezos could be a growth cryptocurrency in 2022.
Don't Miss: Tezos (XTZ) Price Prediction for 2025 and 2030
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Fantom
All-time high: $3.46
Fantom is a smart contract network that aims to provide for the development of decentralised applications and digital assets. A so-called Ethereum Killer, Fantom provides extremely fast transactions at minimal cost.
As is usually the case, Fantom’s USP is its consensus mechanism. Its inner workings are far too complex to be broken down here, but it's enough to understand that Fantom uses a proprietary PoS consensus mechanism called Lachesis. The protocol uses Directed Acyclic Graph (DAG), technology, which enables it to reach much higher transaction speeds than many of its rival platforms.
Fantom’s token price remains well below its all-time high, so it would appear that the token has plenty of room to grow.
Check Out: Fantom Price Prediction For 2025 And 2030
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
THETA
All-time high: $15.72
Theta is another intriguing project. It was launched in March 2019 and provides a purpose-built platform for video streaming that lets users share bandwidth and computer resources, thus making the whole process more economical and, in theory, bringing down the cost of streaming video online.
Of course, this puts Theta in competition with the likes of Tron, but Theta has plenty of backers, including electronics giant Samsung, which led investment in an early Theta funding round and has also chosen the project as its go-to platform for NFTs.
Whether or not this will be enough to lift Theta into the upper echelons of the cryptocurrency market remains to be seen, but at 82% below its previous best price, Theta could be poised for significant growth as the NFT trend continues to gather pace.
Read Also: Theta Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Filecoin
All-time high: $236.84
Filecoin is a data storage platform that uses blockchain technology to allow users to take advantage of unused resources around the world. Admittedly, it isn’t the most glamorous of cryptocurrencies, but Filecoin’s use case is pretty significant - and could become more so as demand for data storage space grows in the coming years.
Centralised storage platforms like Amazon Web Services or CloudFlare are hugely popular but they aren’t without their downsides. For one thing, you are trusting a third-party custodian, whereas Filecoin is completely decentralised. Furthermore, by making the most out of existing resources, Filecoin has the potential to offer lower fees and be more environmentally friendly.
Filecoin has a very valuable use case and with its current trading price down around 92% on its record high, this is one token that is almost definitely undervalued.
Don't Miss: Filecoin (FIL) Price Predictions
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Hedera
All-time high: $0.56
Hedera Hashgraph is another innovative platform and one that claims to be able to process an incredible 10,000 transactions per second. The idea behind the project is to provide a “faster, alternative to other leading smart chains, such as Ethereum.
One of the reasons Hedera can reach such an impressive transaction rate is its Hashgraph consensus mechanism. Once again, it's beyond the scope of this article to break this mechanism down, but effectively what it does is use a system of approved nodes, which are overseen by a global enterprise body including big names like IBM, LG and Boeing.
Whilst some may question just how decentralised this system can be, others will take confidence from the fact that such major organisations are involved in the running of the system.
Hedera’s low price could make it a good portfolio addition in 2022.
Read Also: Hedera Hashgraph (HBAR) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Chainlink
All-time high: $52.70
Chainlink is another blockchain project with a hugely valuable use case. Effectively, what it offers is a means for non-blockchain data to be incorporated into smart contracts. This is known as a decentralised Oracle network and it’s a pretty big deal.
Projects like Chainlink allow different blockchains to interact with external data feeds and payment systems. An example of how Chainlink is used is the Synthetix protocol. Synthetix is a platform for minting cryptocurrency derivatives - i.e. tokens that can represent the price of real-world assets, such as oil, gold or equities. The platform is able to track the price of these assets thanks to data from the Chainlink platform.
Chainlink is a very valuable project and as DeFi continues to evolve, it is highly possible that its services will be in increasing demand. For this reason, we think ChainLink is definitely a potential growth cryptocurrency.
Check Out: Chainlink (LINK) Price Prediction
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
PancakeSwap
All-time high: $43.96
PancakeSwap is a decentrlalised exchange that claims to have more users than any other DeFi platform. Whilst such claims can often be based on a clever interpretation of metrics, there’s no denying that the platform is popular - it currently has some $12 billion locked into its platform.
On the surface, PancakeSwap isn’t anything remarkable - it's a fairly standard DEX offering the exchange of BEP-20 tokens. However, the fact that the platform is built on Binance Smart Chain rather than Ethereum, as is the case with most exchanges, gives it certain advantages - especially as Ethereum continues to struggle under soaring demand.
Indeed, PancakeSwap boasts lower fees and faster transaction times. It also has a fantastic selection of staking options which are noted for providing yields significantly higher than those of rival platforms. With this in mind, we think PancakeSwap could be due an upswing in the near future.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
What To Expect From The Cryptocurrency Market In 2022
It has been said that 2021 was a breakthrough year for cryptocurrency. DeFi continued to attract new investors, who continued to seek out ways of mitigating the economic downturn caused by the coronavirus, and the NFT trend helped to boost cryptocurrency’s profile to a whole new audience. So what can we expect to see in the cryptocurrency world in 2022?
It seems that many industry experts are expected to see more and more traditional investors coming to the cryptocurrency market. For example, Nigel Green, CEO and Founder of deVere Group says: “We can expect to see increasing interest and demand from institutional investors who came off the sidelines in a significant way in 2021 and we will see this continue this year. In turn, this will drive retail investors to increase their exposure to cryptocurrencies, which will help fuel mass adoption.
Similarly, Ben Weiss, CEO and co-founder of CoinFlip, predicts that bigger organisations will start looking to the cryptocurrency market in the year ahead. “What we’re looking at is institutions getting involved in crypto, whether it’s Amazon or the big banks,” says Weiss. A huge retailer like Amazon could “create a chain reaction of others accepting it,” and would “add a lot of credibility.”
Of course, these are only opinions - no one can say for sure what will happen in the cryptocurrency market - but if these predictions pan out to be correct, then now could be a very judicious time to invest in undervalued cryptocurrencies.
Where To Buy Undervalued Cryptocurrency
If you are tempted by our list of 9 growth cryptocurrencies and now want to start building your portfolio, then there are just a few things you’ll need beforehand. Firstly, you’ll need a secure cryptocurrency wallet in which to store your tokens. There are quite a few options here and we recommend doing some careful research to find the one most suitable for you. A good place to start is our guide to cryptocurrency wallets.
Once you’ve set up a wallet, the next step is to find a broker or exchange that can give you access to the cryptocurrency market. Once again, you’ve got a few options here but we think you’d be hard pushed to find better than eToro.
Not only does eToro offer a user-friendly trading environment, but it also has a wealth of information and learning resources for those new to trading. Opening an account takes just a few minutes and you’ll then be able to buy and sell many of the world’s leading cryptocurrencies.
Conclusion
Undervalued or not, the coin projects discussed above represent some of the most significant innovations in the blockchain space. Whilst many of them may lack the notoriety of Bitcoin or Ethereum, their use cases alone are likely to ensure they are continually sought after as the industry evolves.
It’s also true that some of the tokens listed are riskier than others. ChainLink, for example, is now relied upon by several prominent cryptocurrency projects and this lends it a degree of stability moving forward. Conversely, Theta could find itself pushed aside by other platforms competing in the digital entertainment space, such as Tron.
Of course, we don’t suggest that you should add all of them - or even any of them - to your investment portfolio. But they are certainly worthy of consideration - particularly if you already hold the major tokens such as Bitcoin and Binance and are looking to diversify.
Investing in cryptocurrency always carries risk but for those willing to take that risk on, we think the cryptocurrencies listed above could offer opportunity, as it certainly appears they are undervalued as things stand. As always, make sure you research any tokens you are thinking of adding to your portfolio.
eToro – The Best Platform To Buy Cryptocurrencies
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
FAQs
Which cryptocurrencies are undervalued?
The cryptocurrency market has hit a bit of a downturn in the opening months of 2022, with many tokens losing significant value. However, the market is expected to bounce back which means now is the ideal time to acquire tokens that could be significantly undervalued. Of course, the question is largely subjective but tokens like FileCoin, Theta and Algorand are trading at over 80% less than their all-time highs, meaning they could be poised for growth.
How can I find growth cryptocurrencies?
Many cryptocurrencies are deemed undervalued or primed for growth - but this is always highly subjective. The best way of assessing a token’s value is by considering its price history, alongside its use case and technical credentials. Of course, you can always check out cryptocurrency price predictions for what analysts see as growth cryptocurrencies.
Where can I invest in undervalued cryptocurrencies?
Once you’ve identified tokens that you believe to be undervalued, you can buy them via exchanges or brokers. Of course, you’ll need to check that your chosen token is listed with a particular platform first. If you are yet to find a broker, we’d suggest checking out eToro, as it is suitable for both newcomers and more experienced traders.
Which cryptocurrencies will rise in 2022?
XRP, Algorand, Tezos, Fantom, and Ethereum are likely going to rise in value in 2022.
How do I buy undervalued cryptocurrency?
Cryptocurrency is more accessible than ever before, thanks to the plethora of brokers and exchanges operating online. However, we recommend going with a trusted name, such as eToro, as these often offer much better security and investor protection. This is especially true if, like eToro, the platforms also offer legacy finance trading and investment services.
Read More:
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