3 Undervalued Cryptos to Buy On the Dip in May 2023


  • Investors aim to find undervalued cryptocurrencies with the potential for strong returns.
  • Arbitrum (ARB-USD): This significant piece of the Ethereum ecosystem has immense potential.
  • Solana (SOL-USD): In 2022, the price of Solana was pushed down to levels that were deemed unsustainable by investors.
  • Ethereum (ETH-USD): The increasing demand for this crypto’s real-world applications is helping the cryptocurrency to catch up with BTC’s market cap.
undervalued cryptos - 3 Undervalued Cryptos to Buy On the Dip in May 2023

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While cryptocurrencies can be alluring, investors should remain cautious in ensuring a safe and well-diversified portfolio. That said, owning undervalued cryptos with impressive upside is the way to go, for investors with a higher risk appetite. Among the undervalued cryptos I think are worth holding are the following three tokens. These are each projects that have outperformed this year, and have plenty of upside potential over the long-term.

Of course, while these may be undervalued cryptos relative to their previous valuations, they’re also risky. Thus, they’re not for everyone. That said, for those with the stomach for volatility, these are three cryptos I think could continue to outperform over the very long-term.

ARB-USD Arbitrum $1.09
SOL-USD Solana $20.62
ETH-USD Ethereum $1,843.60

Arbitrum (ARB-USD)

Image of two glowing blue chains shaking hands. representing sto platforms
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Arbitrum (ARB-USD) is a new and popular addition to the Ethereum blockchain ecosystem that aims to transform how transactions are conducted on the network. Using optimistic rollups, a unique method, Arbitrum’s Layer-2 scaling solution promises to enhance the speed, scalability, and cost-effectiveness of Ethereum transactions.

AltLayer has been chosen as the first rollups-as-a-service provider to assist Arbitrum Orbit as the Ethereum Layer 2 scaling solution now moves into the Layer 3 space. Arbitrum has gained investors’ attention due to its ability to enhance the efficiency and speed of transactions on the Ethereum network.

Arbitrum stands out for being a fast and cost-efficient solution that sends all transaction data to the main Ethereum blockchain. With a speed of 40,000 transactions per second, Arbitrum outpaces Ethereum’s 14 TPS. Additionally, while Ethereum’s transactions can cost several dollars, Arbitrum’s transactions cost only about two cents. Arbitrum is shaking up the competition in the Ethereum L2 space, outpacing other competitors.

Solana (SOL-USD)

Solana logo on phone screen stock image. SOL-USD, Solana price predictions
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Solana (SOL-USD) has emerged as a standout performer of the year, surging 33.58% in the first week after facing a decline of almost 94% in 2022. While this remarkable rebound is impressive, it remains to be seen if Solana can maintain its upward momentum throughout the remainder of 2023.

Solana is currently undervalued in the crypto market and offers multiple use cases as a platform for decentralized finance, NFTs, gaming, and the metaverse. Despite its significant drop in value in 2022, Solana’s potential as a Layer 1 blockchain network makes it difficult to believe that investors consider it worthless.

In other SOL news, Solana Labs announced that Saga, a crypto-focused smartphone, will be available for public purchase on May 8. The smartphone was created with the understanding that smartphone gadgets will have a significant part in the development of the crypto sector and function as specifically designed wallets for digital currencies. The idea was first teased almost 10 months ago, and Solana hopes that Saga will have a positive impact on its entire ecosystem.

In my opinion, Solana has a positive outlook, especially with its innovative crypto phone. I have been optimistic about Solana since its initial announcement. While it is logical that mobile devices optimized for crypto will be the future of the industry, the question remains whether the broader public shares the same view.

Ethereum (ETH-USD)

Concept graphic of Ethereum Classic (ETC) crypto logo in green techno style
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The second-largest digital currency, Ethereum (ETH-USD), remains alive for a while and is now facing major shifts. Its price trend is also unstable. However, is it a good time to buy or sell this digital asset?

The popularity of meme tokens based on Ethereum has led to fluctuations in transaction fees. These price shifts are beneficial for developers and users since the average fees have been decreasing over the last two years. Ethereum’s recent technological upgrades have positioned it well for future success. The switch from PoW to PoS has made it more energy-efficient and scalable. Additionally, upcoming developments such as cheaper transactions, increased security, and improved user experience make for an exciting roadmap ahead.

In summary, Ethereum appears to be a promising investment choice at present. Its growth potential is gaining attention, and its technological advancements are laying the foundation for long-term success. While investing in the volatile cryptocurrency market is never a certainty, Ethereum’s overall strength makes it a strong contender for generating wealth.

On the date of publication, Chris MacDonald had a position in SOL and ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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