Investors looking for cryptos to buy before the bull market returns have a number of tokens to choose from that are now trading at much more attractive valuations.
Indeed, the most recent bull market saw a surge in interest in cryptocurrencies, the likes of which most investors didn’t expect. However, with higher interest rates and an unfavorable macroeconomic environment, this year has been challenging for crypto fans.
That said, in recent weeks, sentiment has begun to turn increasingly bullish.
Currently, the valuation of the overall crypto market sits at around $1.08 trillion. While up substantially from lows around $800 billion just weeks ago, this is still a far cry from this sector’s high of $3 trillion late last year. Accordingly, whether this market poses an incredible buying opportunity or more downside remains to be seen.
For those taking a bullish view of where crypto could be headed, here are seven cryptos to consider buying right now.
Cryptos to Buy: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) is undoubtedly the most-watched cryptocurrency in the world. And for good reason. This mega-cap crypto holds a market capitalization of around $450 billion, or approximately 40% of the overall market.
Bitcoin is cryptocurrency to most investors.
Bitcoin maximalists have touted BTC as the solution to inflation and a depreciating U.S. dollar. While we’ve seen inflation surge, the U.S. dollar has done anything but depreciate. Additionally, the idea that Bitcoin could be a market hedge has been disproven, with the crypto demonstrating high levels of correlation to equity markets.
So, if Bitcoin isn’t an inflation hedge or a low-beta way to gain exposure to rising asset values, what is it?
Well, many view Bitcoin in a similar way to digital gold. Gold prices have also suffered in this time of U.S. dollar strength and rising yields. Thus, perhaps Bitcoin’s price action will follow gold’s more closely.
For those thinking long term and looking for a way to play crypto in a lower-volatility way, Bitcoin is still likely the way to go.
Next to Bitcoin, Ethereum (ETH-USD) takes second place in terms of market capitalization, with a stunning valuation of more than $200 billion. This valuation is generally derived from an ecosystem of decentralized applications and other projects built on top of Ethereum. Indeed, a long-standing thesis that the value of a cryptocurrency should be equivalent to the value of the projects based on top of its blockchain should make Ethereum very valuable over time.
As more projects gravitate toward Ethereum, there’s an easy-to-understand thesis to holding this coin. However, there’s another catalyst many investors are watching right now. That’s Ethereum’s upcoming Merge.
Ethereum’s Merge will combine the Ethereum blockchain with its proof-of-stake Beacon chain, to create a new iteration of Ethereum. Ethereum 2.0 is what many are calling this proof-of-stake version, which will make mining on this blockchain obsolete and improve the network’s efficiency (and environmental footprint). It’s a win for everyone involved (except Ethereum miners).
Those banking on the long-term value Ethereum provides may rightly get excited about this merge, which now has a tentative date of Sept. 19.
Cryptos to Buy: BNB (BNB-USD)
Since BNB’s launch in 2017, this project has managed to magnify its offerings. Binance has become the largest crypto exchange in the world, driven by a global approach. BNB plays an important role for investors, who use this coin to pay for trading fees and transaction costs.
Thus, the supply and demand of BNB is directly correlated to use of the Binance exchange. As a trusted exchange, Binance and the BNB coin stand to benefit from growing investment over time.
Thus, those taking the long view of this sector may want to consider this coin as a beneficiary of the next bull market, whenever it comes along.
Cardano (ADA-USD) is a another top crypto project that’s garnered much attention of late. That’s mostly because of this network’s ongoing Vasil hard fork, which will bring a number of upgrades to Cardano.
Indeed, Cardano is one project that has been clear and deliberate about its roadmap for developments and enhancements. The developer team has been thoughtful about upgrading this network to improve five areas. These include scalability, decentralization, foundation, smart contracts, and governance. Consistent and meaningful improvement on these metrics is one of the reasons why many investors focus on Cardano.
Additionally, this proof-of-stake blockchain is much more energy-efficient than other large competitors. For those looking for an eco-friendly project with growth upside, Cardano ticks all the boxes.
In this age of optimization, I think Cardano could be worth a look at these levels.
Cryptos to Buy: Solana (SOL-USD)
Solana (SOL-USD) had one of the most impressive runs during the last bull market. That’s because user adoption on this blockchain network surged for two key reasons.
First, Solana happens to be among the fastest blockchains out there. It can handle thousands of transactions per second. Compared to Ethereum and other more established blockchains with throughput metrics around a dozen (or less) transactions per second, that’s pretty darn good.
Additionally, the cost per transaction on the Solana blockchain is negligible. Users typically pay a fraction of a penny in fees on the Solana network. This can compare to hundreds of dollars (or more) on the Ethereum blockchain, for example. Thus, Solana’s status as an Ethereum Killer has been noted by users.
That said, downtime on the Solana network has caused concern. Solana developers will need to improve this network’s security and efficiency moving forward. If they can do that, Solana appears to be one of the best ways to play the next bull market in crypto.
Polygon (MATIC-USD) is another coin that is difficult to talk about without discussing Ethereum. That’s not because Polygon is an Ethereum competitor, per se. Rather, this layer-2 scaling solution is aimed at accelerating transactions on the Ethereum blockchain in an efficient manner.
Polygon, like other scaling solutions, can be thought of as another lane on a congested highway. For those in the NFT business, the scalability Polygon has added is a godsend. That’s because high congestion levels on the Ethereum blockchain have made NFT transactions slow and costly. Indeed, for projects looking to promote lower-value NFTs, that’s not a good thing.
Polygon has also seen increased interest around some of the corporate partnerships and other marketing events it has engaged in. Specifically, a partnership with Coca-Cola (NYSE:KO) and the release of a pride series NFT collection on Reddit have stoked interest. Furthermore, Polygon announced plans to open an NFT marketplace on its network.
That’s a lot of positive activity. For long-term investors looking for a compelling opportunity at these beaten-down levels, Polygon certainly piques my interest.
Cryptos to Buy: Tether (USDT-USD)
Now, for a rather unconventional pick. Tether (USDT-USD) is a stablecoin, which has actually been a rather divisive topic of discussion for investors. That’s because unlike other stablecoins, Tether has been less transparent in disclosing what backs it.
Given the recent turmoil in the stablecoin space, investors have reason to be concerned. Regulators are probing this sector, and may come down hard on stablecoins at some point. These are risks inherent.
However, Tether’s status as a leading stablecoin means it is tied to an incredible amount of liquidity in the crypto world. Accordingly, investors looking to park cash during times of turmoil, while keeping reserves on the blockchain, often look to Tether as a place to hide.
Accordingly, for those seeking a short-term place to park money and avoid volatility, Tether can be one such way to do so. While not risk-free, this is one of the crypto alternatives which has outperformed most of the market this year, due to its dollar peg.
On the date of publication, Chris MacDonald had a long position in SOL-USD and ETH-USD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.