Here are 5 altcoins to study as crypto prices fall near a one-year low

Here are 5 altcoins to study as crypto prices fall near a one-year low

“Pain trading” has been an unwelcome sight in the cryptocurrency market since early 2022 and over the past 24 days, Bitcoin (BTC) and altcoin prices have fluctuated, leading some analysts to suggest that a bear market is coming.

Despite trader concern that another prolonged crypto winter could be beginning, At times like these, investors can capitalize on great opportunities to acquire fundamentally sound cryptocurrencies at a discount.

Crypto Fear & Greed Index. Source: Alternative

On that note, here is a closer look at several projects with strong fundamentals and a proven use case that could be good candidates for accumulation during the current market correction.

Polygon (MATIC)

Ethereum (ETH) layer two scaling solution Polygon (MATIC) is currently down 50.76% from its all-time high of $2.92 which was set on Dec 27, 2021.

Here are 5 altcoins to study as crypto prices fall near a one-year low
MATIC/USDT 1-day chart. Source: TradingView

Polygon saw a great deal of growth and adoption over the course of 2021 because its compatibility with Ethereum and low transaction costs made it a destination for users and protocols looking for a way to stay on the Ethereum network and avoid the high cost of the transactions.

Here are 5 altcoins to study as crypto prices fall near a one-year low
Total MATIC wallets over time. Source: Dune Analytics

The network is capable of hosting all kinds of decentralized applications, including lending protocols like AAVE, decentralized exchanges like Uniswap, or games and non-fungible token projects like Aavegotchi.

With the capabilities and final date for Eth2 launch still unknown, it is likely that layer 2 solutions like Polygon will continue to see increased participation as users look for lower transaction fees.

Phantom (FTM)

Fantom (FTM) is a layer one blockchain protocol that also gained prominence during 2021, as its low-fee environment and Ethereum Virtual Machine (EVM) support helped attract new users and protocols to the network.

Here are 5 altcoins to study as crypto prices fall near a one-year low
FTM/USDT 1-day chart. Source: TradingView

Data from Cointelegraph Markets Pro and TradingView shows that the price of FTM is currently down 36.3% from its December highs and is trading at a price of $2.15 at the time of writing.

The bull case for FTM is supported by the continued rise in total value locked (TVL) on the Fantom network despite the market-wide pullback, with data from Defi Llama showing Fantom TVL currently at an all-time high in USD. 12.07 billion.

Here are 5 altcoins to study as crypto prices fall near a one-year low
Total value locked in Fantom. Source: Defi Llama

Compared to competing networks like Solana (SOL), which has a TVL value of $7.62 billion, Fantom has more value and has not experienced major network outages like Solana, but is trading at a significant discount compared to the price of SUN.

With SOL currently priced at roughly $90, FTM would need to be priced at $18.10 to have an equivalent market cap, suggesting that Fantom is undervalued relative to its tier-one competitors and has the potential to go out of business. that gap as 2022 progresses.

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Polkadot (DOT)

Another token that could potentially be in a good accumulation zone is Polkadot (DOT), a fragmented multi-chain protocol that aims to facilitate the cross-chain transfer of any type of data or assets across multiple blockchain networks.

Data from Cointelegraph Markets Pro and TradingView shows that the price of DOT has been in decline since early November 2021, as the token underperformed its cohort of layer one projects, possibly due to the lack of a bridge that works with Ethereum.

Here are 5 altcoins to study as crypto prices fall near a one-year low
DOT/USDT 1-day chart. Source: TradingView

This all changed on January 11 when the Polkadot Moonbeam (GLMR) parachain was officially launched and established the first cross-chain bridge for the Polkadot network. As of January 24, Moonbeam has processed more than 1,329,000 transactions and supports more than 700 ERC-20 tokens.

As other parachains officially launch on Polkadot in the coming months, DOT has the potential to see increased demand and price for the token as users look to get involved in the Polkadot network.

Here are 5 altcoins to study as crypto prices fall near a one-year low
Polkadot ecosystem. Source: Polka Project

Curve (CRV)

When it comes to the growing importance of stablecoins in the cryptocurrency market, the Curve DAO token has become one of the most sought after tokens by investors and protocols that have been vying for governance control on the platform.

Here are 5 altcoins to study as crypto prices fall near a one-year low
CRV/USDT 1-day chart. Source: TradingView

After hitting an all-time high of $6.80 on Jan 4, the price of CRV has dropped 60% and is now trading at $2.76 according to TradingView data.

Even with the drop in CRV price, the ongoing ‘Curve Wars’ suggest demand for the token is likely to increase once the current weakness in the market subsides as decentralized finance projects attempt to amass governance powers over the Curve ecosystem.

At the time of writing, a total of 49% of the circulating supply of CRV is locked in veCRV, the voting token for the Curve protocol.

Here are 5 altcoins to study as crypto prices fall near a one-year low
Percentage of CRV tokens locked on Curve. Source: Dune Analytics

FraxShare (FXS)

Another protocol that seems to play a bigger role in the stablecoin sector is Frax Share (FXS), the first fractionalized algorithmic stablecoin system in the cryptocurrency sector that started to gain ground in late 2021.

Here are 5 altcoins to study as crypto prices fall near a one-year low
FXS/USDT 4-hour chart. Source: TradingView

The protocol’s FRAX stablecoin has become a favorite of DeFi fans largely thanks to its decentralized nature in a field dominated by centralized projects like Tether (USDT) and USD Coin (USDC).

As a result of its adoption, FRAX’s total transaction volume has increased over the past six months and is currently at an all-time high of $6.3 billion.

Here are 5 altcoins to study as crypto prices fall near a one-year low
FRAX monthly volume. Source: Dune Analytics

FXS’s bullish momentum is supported by a steadily rising total value locked, rising 30.53% over the past week and 86.9% over the past month to hit a record $2.28bn on Jan 24. as the prices of almost every other asset fell in the crypto market.

Here are 5 altcoins to study as crypto prices fall near a one-year low
Total value locked in Frax Share. Source: Defi Llama

With FRAX now being adopted into DeFi by users seeking more decentralized stablecoin options, FXS could also see an increase in demand and price for the token as the importance of trusted stablecoin protocols intensifies.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should do your own research when making a decision.

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