- Cryptocurrency is here to say so let’s take a look at three oversold cryptos to buy at this time.
- Solana (SOL-USD): One of the fastest-growing cryptos, with enviable speed and scalability.
- Cardano (ADA-USD): One of the hottest cryptocurrencies with a clear roadmap for future growth.
- Ethereum (ETH-USD): Second most popular crypto with a laundry list of use-cases to boot.
The current risk-off trading environment is perhaps an antithesis of the cryptocurrency market. Somewhat meaningless price swings often categorize the crypto market due to social media activity, memes, and other inexplicable events. Therefore, with the sector in turmoil, there are plenty of oversold cryptos you add for potentially hefty gains down the line.
The crypto market has been incredibly volatile from the get-go. We’ve seen how prices can rise sharply one day and lose all those gains the following day. However, the current bear run has shattered investor confidence, suggesting that the era of outlandish gains from the sector is over.
Despite what the market may feel at this time, it’s clear that cryptos are here to stay. The step-changes during the pandemic are permanent, and research suggests that the market is set to grow at over 12.5% through 2030. So, there’s plenty to be excited about in the market despite the bearish noise. Let’s take a look at three oversold cryptos on the market right now:
Solana (SOL-USD) was one of the most successful crypto investments last year. SOL-USD shot up over 15,000% from January 2021 to its November highs of $250. However, it’s fallen off a cliff since then, losing more than 60% of its value. Nevertheless, it boasts one of the strongest bull-cases in the sector, making it an excellent long-term play.
Solana is known for its speed and efficiency, two variables critical to any blockchain’s success. Moreover, it supports smart contract functionality, which developers can use in building decentralized apps (dApps). The platform can handle a mind-boggling 65,000 transactions per second with an average transaction cost of just $0.00025.
Solana has been incredibly popular in developing dApps and non-fungible tokens (NFTs). In the past year alone, projects on the network grew from just 70 to over 5,000. Moreover, the blockchain has consistently ranked second in NFT volumes for multiple months now, giving Ethereum a run for its money. Solana’s market capitalization is still only a fraction of Ethereum’s; hence it still has a massive growth runway ahead.
Cardano (ADA-USD) was one of the hottest cryptocurrencies at one time. However, it shed a truck-load of value like its peers and now trades well below its peak. 2021 was a big year for Cardano with the implementation of smart contracts support. There are upwards of 2,000 smart contract scripts on the platform.
It remains one of the most exciting investments in the sector, with a clear roadmap for the future. Its development team is taking it through five stages of development, intending to make it a self-sustaining decentralized blockchain.
Transaction speed is a key talking point in the industry as it lowers costs and congestion on the network, thereby resulting in higher satisfaction for its users. Cardano can process up to 250 transactions per second, but its developers aim for 1,000 after completing its hydra scaling solution. With its final two updates, ADA-USD is likely to leapfrog its competition and rise up the crypto ranks.
Ethereum (ETH-USD) is perhaps the most popular crypto in terms of real-world utility. It has been gaining traction robustly over the past couple of years and, going by analyst estimates, is still early in its growth story. Its upcoming update will move the network from a proof-of-work protocol to a proof-of-stake model. The new update will significantly lower transaction costs, make the protocol more energy-efficient, and supercharge processing speeds. The update will increase an already burgeoning list of use-cases for Ethereum and perhaps supersede Bitcoin (BTC-USD) as the dominant blockchain.
Cathie Woods ARK Investment believes Ethereum could achieve a valuation of over $20 trillion in the next decade. A lot of it is due to it being the first programmable blockchain, facilitating an expanding ecosystem of decentralized finance (DeFi) services and applications along with non-fungible tokens; it accounted for a whopping 78% of NFT sales last year and has $114 billion invested in DeFi applications.
On the date of publication, Muslim Farooque held a LONG position in Ethereum and Solana. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.