Dec 07, 2022 17:14
Almost everyone who invests in cryptocurrencies or equities seeks to locate undervalued assets from which they might profit. Even with finding the most undervalued crypto projects, there needs to be more research, and it can be rather challenging.
In this article, we will take a look at ten of the most undervalued crypto projects currently on the market, discuss what characteristics make a project undervalued, and reveal where to find the most undervalued cryptocurrencies in 2023.
Undervalued cryptocurrencies are those that are bought and sold on the market at a price lower than what is likely to be their genuine, long-term value. In other words, the more extensive market still needs to understand the importance of a digital currency, which explains why its demand and, consequently, its price should be higher.
New cryptocurrencies are just some of the ones that might be undervalued. Even the most established tokens, such as Bitcoin and Ethereum, can be undervalued. Typically, the most significant cryptocurrencies to buy are those that are undervalued. They will eventually increase in value, producing substantial rewards for early investors. However, such investments are most profitable in the long run, and this may require a capital commitment for at least a few years. This does not mean that short-term investments will not be successful, only that they will not be as rewarding.
Some coins may be undervalued, while others may be overvalued. This is typically the outcome of speculative investment, a characteristic of the cryptocurrency market.
There are numerous reasons a cryptocurrency's price may be below its value. It is only typical for a newly launched project with tremendous utility and a novel application to be first undervalued. This is because it takes time for the market to gain confidence in a new enterprise and recognize its value.
Before dipping their toes in the water, the broader community typically awaits endorsements from professional traders and prominent figures. This takes us to another essential facet of overvalued or undervalued digital assets: marketing.
Effective marketing can cause a coin to be grossly overvalued or undervalued. Even a promising currency with a comprehensive white paper cannot gain traction without effective marketing.
When it comes to older projects, undervaluation is typically the result of crypto trading technicalities. Every marketable asset fluctuates between peaks and troughs, often driven by market sentiment.
In 2017, Cardano, a proof-of-stake blockchain platform, was introduced. It is meant to be safe enough to protect vast amounts of data, scalable enough to handle worldwide systems, and durable sufficient to withstand fundamental modifications.
Cardano was designed to address many of the issues Ethereum's proof-of-work consensus methodology presented (and continues to provide) regarding technological advancements. Cardano is frequently considered a competitor to Ethereum. The platform was developed through a peer-reviewed method and continually ranks high among crypto projects with the most developer activity, making it a formidable competitor to Ethereum, Cosmos, and Polkadot.
Additionally, Cardano has gained celebrity endorsements. Gene Simmons stated in February 2021 that he had purchased $300,000 worth of Cardano's native currency, ADA. Simmons noted in a tweet announcing the acquisition that he purchased Cardano because "it's pennies compared to my other assets such as Bitcoin" and because he "believes everyone should be able to afford cryptocurrencies." According to reports, Simmons has invested in Bitcoin, Ethereum, and Litecoin.
Based on its performance and growth over the previous year, the crypto-analytics platform Santiment found in a recent data analysis that ADA is undervalued. To achieve this result, Santiment evaluated Cardano's Market Value to Realized Value (MVRV) indicator.
According to market data, ADA reached an all-time high of $3.10 in September 2021 but could not sustain that level. The year 2022 began poorly for ADA as its value gradually declined to less than $1. It is a perfect moment to buy!
Dash 2 Trade's token has already established as one of the most undervalued cryptocurrencies during its presale. The D2T presale began on 19 October 2022, and in just two days, it had raised over $550,000. During the first stage, investors can purchase tokens for $0.0476, and their value climbs to $0.05 during the second stage.
After the presale concludes, investors who purchased the currency during the initial round will realize a return of over 40 percent. However, token holders also gain access to the Dash 2 Trade platform. Professionals provide crypto signals and market insights, and traders can utilize the platform's specialized capabilities to optimize their trading strategy.
Listings are one of the alerts investors receive. Upon listing on an exchange, cryptocurrencies typically suffer significant price movement. Dash 2 Trades offers these notifications and new cryptocurrency presales. However, the platform also thoroughly inspects each presale to ascertain the tokenomics and the audit's veracity.
Dash 2 Trade offers on-chain analytics that tracks whale migrations. Traders can test their techniques with a backtester and integrate an API for automated trading. The risk profiler function encourages traders to make better decisions.
RobotEra (TARO) is a newly-launched, undervalued cryptocurrency project that contributes to developing a better metaverse by providing players with special creation tools and more earning chances than competitors such as The Sandbox and Decentraland. The TARO native token has recently entered the first round of its presale, allowing tokens to be purchased at a discount.
TARO maintains the RobotEra ecology. It is a 1.8 billion-token ERC-20 token with a fixed supply. The token offers its holders the option to vote on potential issues that could affect RobotEra's future, allowing gamers to have their thoughts heard. In addition to serving as a governance token, players can stake TARO for prizes, so growing the in-game economy.
Given that TARO draws its worth from RobotEra's performance, the token's price will likely skyrocket before the game's official release. Since TARO can be purchased for just $0.02 in its presale and will increase to $0.032 during its final round, now is the best time to get tokens from this new cryptocurrency launch.
RobotEra allows gamers to explore a seven-continent virtual environment that is richly detailed. Individual or cooperative construction of large-scale structures can be utilized to host or market events. On their piece of land, a player has free reign and can use RobotEra's extensive tools to create in-game assets without any coding experience.
During exploration, players may discover resources that can be mined and used to create one-of-a-kind robot friends. According to the RobotEra whitepaper, companions are customizable and can be sold on the NFT marketplace.
In 2012, Ripple, a digital payment network and cryptocurrency, was introduced. This network allows financial institutions to initiate international money transfers, much to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system. Ripple aims to establish a trusted agent that can permit rapid and inexpensive trades of fiat currency, cryptocurrencies, and even commodities such as gold.
Ripple's use case was new when it was first introduced, and even though other blockchain projects offering digital payment solutions have arisen over the years, it still holds the lead. Ashton Kutcher (who gave away $4 million in XRP to charity), Madonna (who worked with Ripple to raise money for orphans in Malawi), Bill Clinton (who spoke as the keynote speaker at a Ripple conference), and Snoop Dogg (who performed Shizzle my Ripple at a New York City event) are just a few of the celebrities whose support has boosted Ripple's profile.
The native currency, XRP, facilitates transfers on the Ripple network by acting as a bridge. While the system is designed primarily for use by banks, anyone may speculate on the price of XRP. We commended Ripple in our 2021 price forecast, and it has already arrived on our list of undervalued coins.
One XRP is worth around $0.81 in April 2022, much less than its all-time high of $1.79 in 2021. It is difficult to predict how long this bullish feeling will persist.
Solana is another undervalued cryptocurrency to monitor in 2019. It is the ecosystem for smart contracts with the quickest growth rate. Solana has accomplished more than most of its predecessors in its two years of existence. It implemented innovative contract features before Cardano, which has existed since 2017.
Solana has been quick to adopt new cryptographic technologies. Despite its value has increased tremendously over the past two years, we rank SOL as one of the most undervalued cryptocurrencies to buy in 2022 because the value gained from SOL coins is different from its perceived value.
Several DeFi, dApps, and Web3 applications are housed on Solana, which includes incorporated intelligent contract capability. In addition, it serves as a host for very successful meme currencies and the incredibly potential metaverse.
As with Ethereum, the emergence of these future technologies on Solana is anticipated to propel SOL token prices and the network's market capitalization to unheard-of heights. Some optimists believe that the cost of SOL tokens will reach and possibly surpass $1,000 by 2025 before soaring over $10,000 in the following decade.
Polygon is a platform developed for Ethereum scaling and infrastructure development. It markets itself as "Ethereum's internet of blockchains" – a multi-chain ecosystem for Ethereum-compatible blockchains.
In its current state, Ethereum has significant restrictions. Even though it's the go-to place for cutting-edge contract creation and decentralized finance (DeFi), it's clogged with so many users that it's nearly unusable.
Polygon's fundamental component is the Polygon SDK, a modular platform for quickly deploying and configuring custom blockchains. It consists of governance, consensus components, and numerous virtual machine implementations and execution environments.
Several major crypto investors have shown interest in the project, including billionaire entrepreneur Mark Cuban, who reportedly made a "significant investment" in the India-based blockchain startup in May 2021.
The value of MATIC skyrocketed in 2021, reaching an all-time high of $2.92 in December of that year. As of April 2022, its value has decreased by more than half, hitting $1.65. Currently, the majority of future value projections for MATIC are optimistic, and many experts estimate that the token's value may treble by 2024.
The most undervalued cryptocurrency we've encountered is Tamadoge, an NFT-based play-to-earn (P2E) game and meme coin (TAMA). As the project's features are gradually released over the next few months, it is anticipated that TAMA's worth will increase substantially.
Tamadoge is already a highly popular and undervalued cryptocurrency. The project's presale was sold out well ahead of schedule, generating an astonishing $19 million. For its initial exchange offering (IEO), TAMA was listed on the tier-1 exchange OKX and the OKX decentralized exchange (DEX), solidifying its position as one of the year's top crypto presales.
The project's focus is a P2E game set in the Tamaverse (the Tamadoge Metaverse). This virtual world allows gamers to explore and view their 3D-animated Tamadoge companions. To simplify trading and advancement, each pet is represented by an NFT (minting starts Q4 2022).
Each pet NFT can be rated with cosmetics, food, and toys purchased from the Tamadoge store. By increasing the level of a pet, its owner can earn Dogepoints, improving its standing on the in-game leaderboard. The larger a player's part of the reward pool, the higher their position on the leaderboard.
In contrast to even the finest meme currencies, the fixed quantity of Tamadoge tokens is only 2 billion. 50% of the supply was assigned to the presale, 30% was set aside to fund the project's continuous development over ten years, and the remaining 20% was set aside for exchange liquidity.
Tamadoge is situated in an ideal location and has just been listed on the OKX and OKX DEX exchanges (available to US residents). Therefore, we can observe TAMA's development directly as it introduces fundamental features such as Tamadoge pets and the Tamaverse.
Enjin Coin is a cryptocurrency of Singapore-based Enjin, which has launched multiple blockchain projects, including a developer platform, marketplace, and intelligent wallet.
Enjin's mission is to facilitate developers' creation and management of virtual assets on Ethereum. It has published software development kits (SDKs) that make it simple for developers to generate digital assets on Ethereum and incorporate them into applications and video games.
ENJ coins, ERC-20 tokens introduced in 2017, are essential for managing assets generated on Enjin, and each created purchase is assigned an ENJ value. Tokens serve as the medium of exchange for purchasing, selling, and trading assets via the Enjin wallet.
Enjin appears to have few notable celebrity endorsements, although, in March 2021, the project announced a deal with Samsung to support ENJ in the Samsung Galaxy S10. The announcement caused a considerable increase in the price of ENJ on the market.
ENJ saw a prosperous year in 2021, much like other altcoins. In November 2021, the price of one token reached an all-time high of $4.82, and it could not continue its upward trend through 2022. As of April 2022, ENJ has lost more than 65 percent of its value since November of the previous year, and tokens are currently trading for approximately $1. If the project's developers can meet their timeframe objectives, the value of ENJ coins could increase.
The largest and most valuable decentralized exchange is Uniswap. According to DeFi pulse, Uniswap is the second-largest DeFi protocol, with a total locked value of over $7 Billion. In recent months, the number of registered users and trade volumes on the Uniswap decentralized exchange have increased. We rank Uniswap as one of the most undervalued cryptos to purchase in 2022 because of this and the increasing privacy concerns among crypto investors and dealers.
Government meddling in the crypto field and the rising demand for anonymity are anticipated to continue driving up the number of users and trading volume on Uniswap DEX. At the time of writing, more than 300 dApps and DeFi protocols have already integrated DEX.
In the future, the onboarding of more users, further integrations, and increased privacy concerns will increase the demand for UNI tokens and the market capitalization of the platform. The price of UNI tokens is anticipated to hit $50 by 2025 and surpass $200 by the turn of the decade.
Fantom is a unique blockchain that validates transactions simultaneously using an asynchronous Byzantine Fault Tolerance (aBFT) consensus process (try saying that five times a row). The IBF consensus addresses the notorious trilemma of security, scalability, and decentralization that plagued blockchain development.
Fantom is a popular platform for developing decentralized finance (DeFi) projects due to its quick transaction speeds and excellent throughput capabilities. It has announced agreements with various venture capital firms, such as 8Decimal, Arrington XRP Capital, BlackEdge Capital, Bibox, and others.
The number of Fantom wallet addresses increased from 5,000 at the beginning of 2021 to over 1.5 million by the end of the year. In October 2021, Fantom (FTM) reached an all-time high of $3.46 due to the coin's increased demand. Due to the weak market, FTM has been unable to maintain its upward trajectory. As of April 2022, its value has decreased by 65% (see a pattern here?) to roughly $1.
Still, Fantom is performing well in comparison to its rivals. The currency's Total Value Locked (TVL) to its market capitalization appears undervalued. According to Defi Llama, FTM's TLV as of April 2022 is $5.94 billion, nearly double its market capitalization of $2.95 billion. In 2022 and beyond, its value may rise due to increasing demand and investment interest.
No one can predict with complete precision the market's trajectory in 2023, but investing in cryptocurrencies is always a profitable endeavor. The seven cryptocurrencies covered in this book represent some of the finest buys at their current discount prices. Due to their underlying technology and notable sponsorships, they can gain traction, which may convert into substantial earnings beyond 2022.