The most recent Bitcoin (BTC-USD) spot ETF announcement may have had a muted effect on the value of the crypto market so far. Yet, I expect that its importance will be realized in full as time drags on and Bitcoin’s price moves. It’s a case of a rising tide being able to lift all boats, as altcoins are closely correlated to the value of Bitcoin. Therefore, I foresee that a large majority of these assets are undervalued cryptos.
Institutions are expected to purchase a large percentage of Bitcoin in circulation to support their peg to the underlying asset. OTC markets are a popular point of call for institutions to get liquidity. But, as Cryptoslate pointed out in a recent article, the private OTC markets have only so much liquidity. And once it runs dry, speculated say institutions will be forced to buy Bitcoin from public exchanges. And this will have a more perceptible effect on the price of the currency.
Therefore, this leads us back to undervalued cryptos to buy in the wake of a Bitcoin spot ETF approval. I’m bullish on these names since Bitcoin is the primary currency pair for these assets. So when Bitcoin rises, so does the perceived value of the altcoins (since many alts are priced in BTC).
Let’s explore the best undervalued cryptos to buy for investors looking to cash in on a possibly huge altcoin craze.
Cardano (ADA)
Cardano (ADA-USD) to me represents great value for investors. It holds a nice middle ground between not being too speculative or capitalized. This is in comparison to Ethereum (ETH-USD) or Solana (SOL-USD) with its market cap being under $20 billion at the time of writing.
I believe it’s wise to invest in cryptocurrencies as a long-term investment and not just a quick flip. Thus, it’s crucial that a strong community and a real demand and use case back it up. Further, ADA ticks both of these boxes for me.
The analyst community is bullish on ADA, with price targets that stretch up to $6 per coin. Others are more cautious, expecting it to climb to the $1 mark. If one were to derive the median for all the price targets for ADA, we’d arrive at a consensus of around $2 per coin. And that would make it a quadruple-bagger and put it near its all-time high territory it reached back in August 2021.
For these reasons, ADA is one of those undervalued cryptos for investors to consider.
Basic Attention Token (BAT)
Basic Attention Token (BAT-USD) has proven its survivorship and resilience. It’s one of the extremely rare few ICO coins that are still around today. Also, its ecosystem has expanded to include the popular Brave web browser. That includes useful integrations that allow user compensation for watching ads instead of consuming them passively.
The Brave browser is one of the key reasons I’m bullish on BAT, along with its tipping features that allow users to reward creators by sending them tokens. Brave now accounts for around 1% of all browsers globally. Additionally, its user base is scaling exponentially. The rise in Brave could be attributed to YouTube’s enforcement of harsh anti-adblock policies. Those show intrusive popups to users running browser extensions to block ads on its YouTube. This is a massive mistake on Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) behalf. So, Brave is happy to absorb its disgruntled Chrome users.
BAT’s market cap is relatively small at $366 million, ranking #139 out of all assets on CoinMarketCap. Some analysts expect that BAT could surge to $1.30 and above in 2025. But, others have their predictions just below $1 for this year. Even if these predictions are still modest, BAT’s implied upside is over 200% if these estimates are anything to go by.
Polkadot (DOT)
Polkadot (DOT-USD) is another crypto that some analysts estimate will explode in value. Some sites predict that DOT could surge to over $50 in value. But, take these estimates with a large pinch of salt as they are inherently speculative.
Instead, investors can look to its network fundamentals to see if a higher valuation would make sense given that the coin trades for just a fraction of its all-time high.
Investors have good reason to feel optimistic about DOT. Namely, Polkadot 2.0 is fully rolling out currently. Also, its connection with Ethereum will give it a strong basis to continue remaining relevant moving forward.
In the short term, analysts expect that it could rise by over 30% if momentum stays on its side. That could happen if more investors start buying in anticipation of the late April Bitcoin halving event.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
