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The cryptocurrency market has always been volatile, but 2022 has been the Wild West. Between fears of rising interest rates, high inflation, and the Russian invasion of Ukraine, risky assets in general – and the crypto market in particular – suffered heavy losses. However, for cryptocurrencies that are not fully speculated – i.e., those that have demonstrated utility – these steep declines could offer good entry points for future appreciation. Here are four cryptos that could be good buys this month.
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- Price as of March 1: $96.91
Solana is the ninth largest cryptocurrency, with a current market capitalization of around $31 billion. Still, Solana, which has climbed over 11,000% in 2021, is down around 42% since the start of 2022, perhaps providing a long-term entry point for the crypto. Solana skyrocketed in 2021 by attracting several developers attracted by crypto’s relevance to the world of non-fungible tokens, or NFTs.
Solana’s transaction speed is also making waves, as it processes over 2,500 transactions per second compared to industry giant Ethereum’s 30. Solana can achieve these speeds thanks to its proof-of-history consensus mechanism, which marks blocks of data with timestamps and thereby streamlines transaction verification.
As Matt Hougan, CIO of Bitwise Asset Management, told CNBC Make It, “Solana is Ethereum’s biggest competitor. I wouldn’t put all my tokens on it, but I’m a huge fan. Overall , Solana offers immense potential with its speed and rapid application development, but it is still going through some growing pains, which could keep its price volatile.
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- Price as of March 1: $86.06
Just like Solana, one of Avalanche’s main strengths is its speed which, at 4,500 transactions per second, is almost twice as fast as its competitor. Avalanche can achieve its speed through its structure, which reduces network congestion. The details are intricate and developer-friendly, but essentially Avalanche splits chains, runtimes, and deployments, allowing them each to have their own way.
Avalanche is compatible with Ethereum, which gives it an extra advantage over its competitors, as developers can launch applications on the platform in the language of Ethereum. With over 170 existing projects on Avalanche and more to come, additional investment should follow. Co-founder and CEO of cryptocurrency exchange FTX Sam Bankman-Fried is a huge supporter of Avalanche, telling Decrypt, “I think there’s a world in which this is getting absolutely huge.” Raj A. Kapoor, founder of the India Blockchain Alliance, agrees, saying that Avalanche has “…several projects planned for 2022, which may improve its outlook despite any decline. Its strategic partnership with Deloitte is to bodes well. It’s also tied to web3 accelerators. Mix that up and it’ll make a good buy in the long run.
- Price as of March 1: $1.62
Polygon has a market capitalization of just over $12 billion, making it about 1.5% the size of the Bitcoin market leader. If you subscribe to the belief that industry giant Ethereum will be a long-term winner, Polygon could be a way to build on its success. Polygon’s goal is to increase the scalability of Ethereum by allowing theoretically unlimited applications to run on the network, the idea being that the more accessible Ethereum is, the more success it will have in the long run.
Polygon is also part of a movement dubbed “Web3” and aims to be a decentralized version of Amazon Web Services. Moves like this have caught the eye of big players in the space, such as Sequoia Capital India, which recently led a $450 million investment in Polygon. According to Shailesh Lakhani, Managing Director of Sequoia India, “Thousands of developers across a range of applications choose Polygon and their complete set of scaling solutions for the Ethereum ecosystem,” making it a solid investment. . Down around 36% since the start of 2022, long-time believers in Polygon may have an attractive entry point.
- Price as of March 1: 86 cents
With a market cap of just $5.7 billion, Algorand is one of the smallest of the big players in the crypto world. Believers suggest that this relatively small market capitalization means big gains could await the crypto in the future as it catches up to its larger brethren. However, with high potential reward comes high risk, and Algorand has seen its value essentially reduced in the first two months of 2022 alone.
Algorand was launched in June 2019 by MIT professor Silvio Micali, and it is designed as an open-source, permissionless blockchain network. Nitish Sharma, Global CEO of TP Global FX, said: “Algorand is designed to be a payments-focused network with fast transactions and a strong focus on achieving near-instantaneous finality – that means processing over 1,000 transactions per second (TPS) and achieve transaction finality in less than five seconds. As speed captures the attention of investors in the crypto world, Algorand is a favorite of many crypto investors, who also value its developer support and real-world use cases.
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