Cryptocurrency markets are often volatile and uncertain, with some coins soaring to the moon and others falling flat on their faces before you can say “blockchain.” This volatility has led many investors to start investing in intrinsically undervalued cryptocurrencies in the hopes of earning a good return on their investments.
But what is the most undervalued cryptocurrency out there? The answer to that depends largely on your individual goals and risk appetite. There’s no single coin that can be considered “the best” or “most undervalued,” as different coins have different use cases and value propositions.
That being said, we have compiled a list of some of the most undervalued coins that may be worth investing in, depending on your individual preferences.
Whether you’re a seasoned investor or just getting started in the world of cryptocurrencies, read on to learn about some of the most undervalued coins available on the market today.
What Makes a Cryptocurrency “Undervalued”?
Before we dive into our list of the most undervalued cryptocurrencies out there, it is important to understand what makes a cryptocurrency undervalued.
An undervalued cryptocurrency is one that has a potential for growth and has yet to be fully recognized by investors. This means that it may be trading at a lower price than its actual value due to a lack of recognition. Undervalued coins offer investors a great opportunity for returns if they are able to recognize their potential and invest in them before they gain popularity in the market.
Undervalued cryptocurrencies have the potential to generate higher returns than coins that have already seen appreciation over time. This is because when these coins start getting attention, demand will increase, and prices will rise accordingly. This means that investors who get in early could reap huge rewards as soon as these coins become more popular with other traders in the market.
Additionally, undervalued cryptocurrencies can help diversify your portfolio as they offer exposure to different markets which may not be available through traditional investments such as stocks or bonds. They can also provide protection against volatility since they don’t move with the overall market trend.
So even if the rest of your investments suffer losses due to market fluctuations, you still have some assets that can provide a buffer.
What Is The Most Undervalued Cryptocurrency: Our Top Picks
Now that we have a better understanding of what makes a cryptocurrency undervalued, let’s take a look at some of the most promising coins.
Tezos is arguably one of the most undervalued cryptocurrencies out there. It was first proposed by Arthur Breitman in a position paper in August 2014. Shortly after, Breitman published the white paper and together with his wife, Kathleen Breitman, launched Dynamic Ledger Solutions (DLS), the company that built the original code for Tezos.
Tezos is a blockchain network similar to Ethereum and Bitcoin, but it’s more advanced as it has an adaptive infrastructure that allows the network to evolve over time. Tezos is based on a smart contract system, and its adaptive infrastructure makes it highly attractive for investors looking for long-term value in their investments.
The project has been gaining increasing attention from some of the world’s most influential companies. For instance, Gap, Manchester United, Red Bull Racing, Ubisoft, Honda, and many other brands have selected Tezos for NFTs as well as other projects. This highlights the platform’s potential for widespread adoption.
These partnerships could be launching pads for widespread adoption of the cryptocurrency and its technology — a huge potential benefit to early movers. Additionally, exchanges like Kraken and Coinbase also let users earn passive income by staking tezos coins on their platforms. This further increases the potential of this cryptocurrency to generate returns for investors.
Cardano is an open-source, public blockchain and cryptocurrency project founded in 2015 by Charles Hoskinson, a co-founder of Ethereum. The main goal was to create a proof-of-stake protocol with the ability to scale better than other similar projects.
Cardano is a platform that can be used for smart contracts, decentralized applications, and peer-to-peer transactions. The project has gained traction since its launch as it is one of the few blockchain networks that offer scalability, interoperability, enhanced security, and sustainability features with strong backing from influential organizations such as Ouroboros Genesis and IOHK.
Cardano’s native token ADA was recently added to Coinbase and is available for trading on multiple exchanges worldwide — another indicator of its growing popularity among investors. Additionally, Cardano has a market cap of around $8.9 billion, making it one of the biggest cryptocurrencies out there.
Investing in Cardano is an excellent way to gain exposure to a project that has the potential to become a major player in the blockchain space.
Chainlink was founded in 2014 by Sergey Nazarov and Steve Ellis to bridge the gap between smart contracts and real-world data. The project has gained significant adoption since its launch and is now one of the most promising cryptocurrencies out there.
Chainlink’s main purpose is to enable smart contracts to access external data sources such as stock prices, weather data, or any other type of information that can be used to power decentralized applications — a service that no other cryptocurrency has been able to provide.
Chainlink is also fully decentralized, trustless, and tamper-proof, making it one of the most secure platforms in the space. Its native token, LINK, enables the incentivization of node operators powering the network.
Investors looking for long-term growth should take a closer look at Chainlink. The project has strong backing from Google Cloud, Oracle, and Web3 Foundation, among other major players in the blockchain space — a testament to its promising potential in the future.
Polygon is one of the most promising layer-two scaling solutions in the blockchain space. Founded in 2017 by Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun, the project aims to increase the acceptance of cryptocurrencies by making it easier and faster for users to make and validate transactions.
Polygon uses a combination of sidechains, Plasma, and Optimistic Rollups to reduce transaction costs and enable faster throughput than most other platforms — up to 65,000 transactions per second in some cases. The project has gained significant attention from the crypto community due to its innovative approach and potential for widespread adoption.
Polygon’s native token MATIC is used to pay fees, stake tokens, and interact with the network. The token has seen significant growth since its launch as more and more developers are building on Polygon’s platform. In addition, major exchanges such as Coinbase Exchange, Binance, KuCoin, and Kraken have added support for MATIC tokens, further increasing its potential in the long term.
Analysts believe that as more people start using Polygon-powered dApps and the Ethereum ecosystem onboards more users, the value of MATIC tokens will skyrocket. Therefore, investing in Polygon could be an excellent way to gain exposure to a quickly growing project with real-world utility and strong backing from major players.
Filecoin is one of the best options for users who prioritize privacy. Filecoin was launched in 2014 by Protocol Labs and has since become one of the most popular decentralized data storage systems. It is built on the Interplanetary File System. This peer-to-peer network allows users to store data without having to rely on centralized cloud storage providers like Cloudflare or Amazon Web Services.
Filecoin’s decentralized storage solution is powered by its native token FIL, allowing users to purchase network space and pay miners who contribute their computing power. The project has attracted significant attention from the crypto community due to its innovative approach and potential for widespread adoption.
Filecoin’s main purpose is to enable more efficient data storage by cutting out middlemen and providing users with a secure way to store their data without having to worry about privacy or censorship issues. Its usage of proof-of-replication ensures that files are stored securely, while its incentivization model encourages miners to contribute computing power in exchange for rewards.
Given its strong fundamentals and growing popularity among investors, Filecoin could be an excellent long-term investment for those looking to benefit from the booming data storage industry. With its unique approach and real-world utility, Filecoin has all the makings of an undervalued cryptocurrency.
PancakeSwap is a decentralized cryptocurrency exchange built on the Binance Smart Chain (BSC). It was launched in 2020 and has since become one of the most popular DeFi protocols on the BSC.
PancakeSwap’s main purpose is to enable users to trade BEP-20 tokens without having to trust any centralized custodians or exchanges while also providing liquidity for new assets entering the market. Users have to deposit funds into a liquidity pool in return for a share of the pool’s rewards. They can then trade tokens against each other and withdraw their funds at any time.
PancakeSwap’s native token, CAKE, is used to pay for trading fees, as well as staking rewards for liquidity providers. Given its growing popularity amongst crypto traders and investors, analysts believe that PancakeSwap could be an excellent long-term investment opportunity.
As more people flock to DeFi protocols and PancakeSwap gains further traction in the market, it has good potential to become one of the most successful projects on BSC. The platform currently has $3.3 billion in funds staked or locked in its liquidity pools and is showing no sign of slowing down anytime soon.
Ripple is one of the oldest and most well-known cryptocurrencies out there. Founded in 2012 by Jed McCaleb, Chris Larsen, and Arthur Britto, the project seeks to revolutionize cross-border payments by providing fast and secure money transfers using blockchain technology.
Ripple aims to make it easier for banks to process payments quickly, securely, and at low cost — a service that is currently not available with traditional payment systems. Ripple has also made significant progress towards achieving mass adoption of its platform, as major financial institutions such as Bank of America, JPMorgan Chase, and Wells Fargo have partnered with the project in recent years.
The project’s native token, XRP, enables users to send value across borders quickly and cheaply. The token has seen significant price appreciation since its launch and is now one of the most valuable cryptocurrencies available.
What truly makes Ripple an undervalued cryptocurrency is Ripple Labs’ ongoing court case with the U.S. Securities and Exchange Commission (SEC). If Ripple Labs is able to win the case, the price of XRP could skyrocket, making it one of the most profitable investments in crypto.
Dogecoin is one of the most popular cryptocurrencies in the world. Created as a joke in 2013, it has since become a staple in the crypto community, thanks to its growing user base and low-cost transactions.
Dogecoin is based on the Scrypt algorithm, which means it is mined using computer hardware instead of specialized ASIC machines. This makes it easier for anyone to join the Dogecoin network and start earning rewards. Dogecoin also uses the Proof-of-Work protocol, which allows miners to solve complex mathematical puzzles in order to generate new blocks on the blockchain.
Dogecoin has several advantages that make it a great long-term investment option. The coin has had several successful campaigns and is incredibly popular with influencers and celebrities, notably Elon Musk, making it one of the most talked-about cryptocurrencies on social media. Its market capitalization currently stands at around $10 billion, making it one of the most valuable cryptocurrencies available today.
Despite its popularity and value, many experts believe that Dogecoin is still undervalued compared to other major coins such as Bitcoin or Ethereum. Given its strong fundamentals and low barrier to entry, Dogecoin could be an excellent long-term investment for those looking for an inexpensive and easy way to enter the crypto market.
Cryptocurrency is an ever-changing landscape, and as such, it’s important to keep up with the latest developments. Undervalued cryptocurrencies allow investors to get in on the ground floor of potentially profitable projects.
From Tezos to Dogecoin, there are a variety of coins that could be worth investing in if you’re looking for long-term gain. Of course, it’s important to do your own research before making any investment decisions, but these coins are a great place to start.