Despite the fact that we are possibly experiencing a crypto winter, there are currently many cryptocurrencies on the market with incredible potential that can be a great opportunity to take advantage of within the next significant market movements. We will explore about three undervalued cryptocurrencies, evaluate their challenges, the great opportunities that highlight them each with their targets, and why we should take a look at them. Let’s start!
Undervalued Cryptos: XRP (XRP)
In 2012, XRP (XRP-USD) burst onto the financial scene with an ambitious mission to transform cross-border payments and challenge traditional banking systems. Ripple Labs, the creator of this cryptocurrency and technology platform, had a brilliant idea to make global transactions faster, cheaper, and more efficient. Unlike traditional systems, Ripple took a different approach using a decentralized network and consensus algorithm, providing a secure and fast solution. Ripple’s native cryptocurrency, XRP, was a bridge between various fiat currencies, facilitating their exchanges.
Financial institutions quickly recognized Ripple’s vision and forged partnerships with major players such as American Express (NYSE:AXP) and Santander (NYSE:SAN). These collaborations strengthened Ripple’s credibility and adoption within the traditional financial industry. Of course, XRP faced its own challenges along the way. Regulatory hurdles and legal disputes, including a lawsuit from the U.S. Securities and Exchange Commission in 2020, created uncertainty about its future.
Despite these obstacles, Ripple remained steadfast in its commitment to building a robust infrastructure and adapting to evolving regulations. XRP’s price experienced fluctuations, reflecting the volatility common in the cryptocurrency market.
During the bull market frenzy of 2017-2018, XRP soared to unprecedented prices exceeding $3 as people believed Ripple’s technology could revolutionize international transactions. However, the subsequent market crash led to a significant decline, with XRP prices dropping to the current price of $0.4732. With all that in mind, I believe this is among the most undervalued cryptos.
Uniswap (UNI)
In the vast world of decentralized cryptocurrency exchanges, Uniswap (UNI-USD) stands as a true pioneer. It is among the most undervalued cryptos and proudly holds the title of the largest decentralized exchange platform in terms of trading volume, leaving an indelible mark on the world of digital finance. But the story doesn’t end there. In an impressive display of innovation, Hayden Adams, the visionary founder of Uniswap Labs, recently unveiled the preliminary code for Uniswap v4 in an emotional blog post on June 13. This latest release introduces an exciting feature called hooks, which revolutionizes the world of automated market maker (AMM) exchanges like Uniswap.
Hooks, with their remarkable adaptability, promise to propel the development of AMM exchanges to unprecedented heights. They empower developers with unparalleled control by allowing specific actions to be executed at different stages of a pool’s lifecycle. Whether performing tasks before or after a transaction or responding to changes in liquidity provider positions, the potential applications are limitless. Imagine creating time-averaged market makers that allow users to gradually sell large amounts of cryptocurrencies over time, outperforming bots and protecting against adverse price movements.
With this ingenious feature, users gain an unprecedented level of control. In addition, Uniswap v4 enables the implementation of limit orders on the blockchain, ensuring that orders are executed only when a token reaches a specific price. These advances offer a truly remarkable level of accuracy and sophistication.
It is also worth mentioning that Uniswap’s current price is $4.93, a testament to the community’s unwavering belief in its potential. While Uniswap v4 is still in its early stages, the Uniswap Labs team understands the importance of inclusion and collaboration. Community involvement, consensus building, and valuing diverse perspectives are at the core of their approach. They recognize that the real magic of decentralized finance lies in the collective wisdom of those who share a vision of a more equitable and accessible financial future. Rest assured that previous versions of Uniswap will continue to thrive, ensuring that the spirit of decentralized exchanges lives on.
Stellar Lumens (XLM)
In the vast universe of cryptocurrencies, Stellar Lumens (XLM-USD) shines as a guiding star for fast and accessible cross-border transactions and the exchange of digital assets. Operating on the Stellar network, Stellar Lumens, represented by XLM, aims to redefine the way we transact and exchange value.
Furthermore, the Stellar network has proposed a modification to transaction submission that supports the Soroban implementation. This change would hold the key to unlocking the network’s potential by limiting simultaneous transaction submissions from the same originating account. In this brave new world, each account would be able to submit only one transaction per block. This adjustment would address potential failure cases resulting from multiple simultaneous transactions from a single account. The developers will update Stellar-core to impose this limitation and bring order to the transaction acceptance process.
In this new paradigm, new transactions in an account wait patiently for their turn while a previous transaction in the same account undergoes processing. Once the previous transaction is confirmed or discarded, subsequent transactions can happily join the cosmic dance.
This orchestrated rhythm ensures clarity, efficiency, and harmony in the Stellar network. Importantly, this change does not affect the functionality of rate enhancements. Rate enhancements transactions at a higher rate to replace older transactions. In addition, channel accounts, the preferred solution for transaction scalability, are not affected as long as they adhere to the principle of a ledger transaction.
These modifications aim to reduce ambiguity, simplify implementations, and solve problems related to messy transactions and fluctuating prices. In addition, they improve efficiency, security, and scalability, laying the foundation for an unparalleled user experience. As a result, they pave the way for future growth and adoption of Stellar Lumens and the extraordinary Stellar network. It is worth noting that XLM is currently priced at $0.1041, a humbling reminder that even the brightest stars have modest beginnings. This makes it among the most promising undervalued cryptos in my book.
As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
