Bitcoin and Ethereum have become household names in the average household. Dogecoin continues to surprise the world with billions in market capitalization for a dog-themed token.
Apart from the familiar names, there are thousands of other cryptocurrencies, big and small, which can become overwhelming if you are getting started in the world of crypto.
This article will introduce you to some cryptocurrencies, that we think, are undervalued in today’s market. I will give you a brief introduction to each of these and tell you the rationale of why we think they carry significant upside potential. Let’s dive in without any further ado.
Tether (USDT)
Tether is the largest stablecoin in the crypto market. The coin is pegged to fiat currencies one-to-one and is hard-backed by reserves. Like other stablecoins, Tether is considered a great option for investors who are worried about the extreme price volatility of other cryptocurrencies. The team publishes a daily record of the current total assets and reserves.
Tether is also the first and the most used stablecoin out there and is one of the most traded cryptocurrencies by daily volume. It is widely adopted across major exchanges, OTC desks, and wallets. At $104.25 billion, it is the third biggest cryptocurrency, only behind Bitcoin and Ether.
Solana (SOL)
The Solana blockchain was developed to be a scalable alternative to Ethereum. The platform powers decentralized finance (DeFi), decentralized apps (DApps), and smart contracts. Solana uses a combination of proof-of-stake and proof-of-history mechanisms to verify transactions quickly without sacrificing security.
Solana network allows everyone to have equal access to all information written on the blockchain. This will prevent censorship of the platform. Solana is powered by the native utility token SOL. The token debuted on exchanges in 2020 at $0.77. At the time of writing SOL is trading for $191.81, nearly 240 times the launch price.
Binance Coin (BNB)
At an $89 billion market cap, Binance Coin is the 4th largest cryptocurrency. The coin is native to Binance, one of the largest crypto exchanges in the world. Binance introduced the token in 2017 to trade and pay fees on the platform.
However, since then, Binance Coin has expanded into a widely adopted cryptocurrency. BNB is now used for trading, payment processing, and even online shopping. It can also be exchanged for other cryptocurrencies including Ether and Bitcoin. Launched in 2017 at $0.10, the token is now trading at $594.42.
XRP (XRP)
XRP is a cryptocurrency created and partly managed by Ripple, a payment solutions company. Ripple launched XRP in 2012, but the company has recently started focussing more on its cross-border payment. XRP can be used to facilitate currency exchange, including that of fiat currencies and major cryptocurrencies. When XRP debuted in 2017, it was trading at $0.006. When I last checked, the XRP price was at $0.645, that’s over a hundred times the launch price.
US Dollar Coin (USDC)
USD Coin is another stablecoin and its value is tied to the U.S. dollar. USDC is currently the second-largest stablecoin, with a current market capitalization of $32 billion. USDC was launched in 2018 by Centre, a consortium founded by Circle and Coinbase, and is powered by the Ethereum blockchain.
The stablecoin is backed by real assets and is hence known as a fiat-collateralized stablecoin. The most common use of USDC is to store it in a crypto wallet, and then use it to purchase other cryptocurrencies.
Avalanche (AVAX)
Avalanche pitches itself as a blockchain platform with high block speeds and affordable transaction fees. AVAX, notably, has a large amount of total value locked (TVL) deposited as staking, lending, or liquidity pools, in the platform.
This indicates the popularity of the Avalanche protocol and the adaption of AVAX. The cryptocurrency was launched in 2021, at just above $5 and its current price is $57.83. That’s around 1000% appreciation of value.
Cardano (ADA)
Cardano (ADA) is one of the first cryptocurrencies to adopt the proof-of-stake (PoS) consensus mechanism. Compared to the Proof-of-Work (PoW) consensus, PoS makes great strides in reducing the transaction time and energy consumption of blockchain transactions.
Cardano supports smart contracts and decentralized applications (dApps) and is powered by its native token ADA. Compared to other major blockchains, ADA is yet to have an explosion of value appreciation. While launched back in 2017, ADA was trading at $0.02. As of today, the token is trading at $0.67.
Dogecoin (DOGE)
Dogecoin was started as a meme in 2013. However, the coin has evolved into a major cryptocurrency owing to a strong community and celebrity endorsements. Dogecoins do not have a maximum supply limit, making a more removed from the ideology of cryptocurrencies as envisaged by Satoshi Nakamoto. In 2015, DOJE started trading at $0.00029 and hit $0.54 in 2021. The meme coin is now trading at $0.18.
Bitcoin (BTC)
At a whopping $1.4 trillion in market capitalization, it can be quite surprising to think of Bitcoin as an undervalued cryptocurrency. Created in 2009 in the aftermath of the mortgage crisis, Bitcoin (BTC) is also the first cryptocurrency. The Bitcoin network uses a proof-of-work consensus mechanism, which is considered a gold standard in transaction security.
Starting at a fraction of a dollar in value, Bitcoin price has gone through the roof as the word gradually broke out to the public. In 2011, Bitcoin was trading at $0.05. At the time of writing, the price is $71,000. Bitcoin is here to stay.
Ether (ETH)
Ether is the native cryptocurrency of the Ethereum blockchain, which is a top choice for developers in DeFi and dApps. The platform is the first to introduce smart contracts and due to the first-mover advantage, Among cryptocurrencies, Ether is second only to Bitcoin in terms of market capitalization.
Ethereum was conceived in 2013 by Vitalik Buterin. The platform allows users to deploy immutable dApps onto it. It is also popular for minting NFTs. Moreover, several layer-2 blockchains utilize Ethereum’s ERC-20 token standard for initial coin offerings(ICO). Ether has experienced tremendous growth since its inception. In 2016 ETH was trading at $11. The coin’s price is now at $3628.76.
Shiba Inu (SHIB)
Shiba Inu entered its first bull run alongside Dogecoin (DOGE) in 2021. This was a result of the Wallstreetbets subreddit pumping up meme coins with dog icons. Tweets from Elon Musk about dogecoin have also contributed to the phenomenon.
Shibu Inu is planning on the launch of its new layer 2 blockchain, which will focus on metaverse and gaming applications. SHIB is an Ethereum-based ERC-20 token. In 2021, the token gave its investors an astronomical return of 40 million percent. At the time of writing, SHIB is traded for $0.00003065, which is 11% up from yesterday.
Toncoin (TON)
The Open Network previously owned by Telegram is a decentralized layer-1 blockchain network. The project is currently being developed by the TON Foundation. Toncoin is the native token of TON and can be used for network operations and other transactions for applications built on TON.
The platform is designed to take a divisional approach to scalability. It distributes the network’s workload across different subchains, allowing faster transaction verification. Toncoin started trading in 2021 at $0.5 and is now trading at $5.11, which is a ten-fold value appreciation.
Conclusion
Cryptocurrencies continue to be more popular among the general public. Though the government has been apprehensive about this new type of financial instrument, the launch of Bitcoin ETFs has changed this. However, crypto assets, owing to their significant price volatility, continue to be considered a risky investment class.
The authentic voices in the world of finance and investing think that crypto assets should be used as a hedge against the inflation of fiat currencies and not a speculative vehicle. As always, exercise extreme prudence while investing in cryptocurrencies or any instruments.
