Certain investors use many different methods to attempt to value cryptocurrencies. Whether it’s a network’s growth, user base or transaction metrics or some measure of intrinsic value, finding undervalued cryptos is much harder than it looks.
However, using some of these criteria, it’s easy to conclude that certain crypto projects are better than others. One might suggest there’s value under the hood if one believes in the long-term growth drivers underpinning these networks.
Here are three tokens representing undervalued cryptos worth considering right now.
Ethereum (ETH-USD)
The SEC’s silence on spot Ethereum (ETH-USD) ETFs has dashed hopes for May approvals, with chances downgraded to 35% by experts. A number of analysts suspect Chair Gary Gensler’s cautious approach influences this delay. Despite regulatory silence, the market’s sentiment concerning Ethereum remains optimistic, anticipating eventual approvals given past positive stances on the commodity-like asset.
Additionally, the upcoming Dencun upgrade revolutionizes Ethereum’s data storage, enhancing accessibility and reducing costs for layer 2 transactions. Comprising nine Ethereum Improvement Proposals, the upgrade promises near-free layer-2 transactions, potentially shifting Ethereum’s activity to these networks. Projects might incentivize usage by absorbing gas payments, making transactions even cheaper.
Lastly, Ethereum is a crucial Web3 crypto asset alongside Bitcoin, valued for portfolio stability. It pioneered smart contracts and hosted a large share of the total value locked in the world of decentralized finance (DeFi). Significant upgrades such as the EIP-1559 further the thesis that it’s one of the undervalued cryptos worth buying at current prices, particularly on this recent dip.
Ripple (XRP-USD)
We all know how cryptocurrencies work: through simple supply and demand dynamics. Buyers are here willing to pay a price, while sellers are willing to accept trades, taking profits when a given token rises.
However, it’s different for Ripple (XRP-USD) because this token relies on its utility created via the Ripple Ecosystem. This exposes investors to a revolutionary technological infrastructure to improve cross-border transactions. Compared to other traditional systems, Ripple is adapting near-instantaneous transactions. This alone presents an excellent opportunity for innovating payment systems worldwide.
Ripple’s rapid cross-border transaction capabilities hold promise for global banks, particularly in emerging markets. With a pre-mined token supply and potential for long-term adoption, XRP’s value could certainly be under-appreciated.
Short-term price fluctuations depend on market dynamics, but a rally to $1 is plausible with growing interest in cryptocurrencies. The outcome of Ripple’s legal battles could significantly impact XRP prices. A dollar-cost averaging approach mitigates risk, enabling gradual investment accumulation at varied price points for potential future gains.
Cardano (ADA-USD)
Cardano (ADA-USD), a Layer-1 intelligent contract network, achieved a milestone by launching Mehen’s USDM, a fiat-backed stablecoin. The USDM token, issued by Mehen Finance, is 1:1 convertible to U.S. dollars and can be transferred on Cardano without additional intelligent contracts. Mehen announced the onboarding process for institutional customers, with USDM expected to arrive on-chain during the week of March 18.
Cardano’s ecosystem growth marks a significant milestone with the launch of USDM, the platform’s first fiat-backed stablecoin. Unlike other algorithmic or synthetic stablecoins, Mehen’s USDM is fully backed by U.S. dollars at 1:1. Users deposit USD into their Mehen account, which is stored separately for token holders to mint equivalent USDM tokens. This drives about a 37% quarter-over-quarter and 673% year-over-year increase in Cardano’s stablecoin value.
Cardano’s proof-of-stake consensus ensures eco-friendly operations, countering concerns over crypto’s energy usage. This sustainable approach aligns with growing ESG investment trends, distinguishing Cardano in the market. Development focuses on the upcoming Chang hard fork, empowering ADA holders, followed by the Basho phase and significant partnerships like the recent UAE agreement.
On the date of publication, Chris MacDonald did not have (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.
